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2022 (5) TMI 851 - AT - Income TaxAssessment u/s 153A - Addition made without any incriminating document or not - Accommodation entry - HELD THAT:- As survey action which was commenced on 25.03.2014 at the premises of the assessee was converted into search action on 28.03.2014. During the course of search action several evidences were found which revealed that the assessee’s claim of acquiring and installing certain assets at its factories was found to be non-genuine considering that the inword registers of such factories did not have any such entries of having received/installed the said assets. The details of such incriminating evidences of the order of the CIT(A) and the same was also corroborated by the statements recorded of the relevant persons at the time of search action. Similarly, premises of Hasmukh Mehta who had acted as a broker for providing bogus accommodation entries to the assessee group was also covered in the search action and a diary was seized which had details of the various accommodation entries obtained by the assessee. During the course of appellate proceedings before us, the ld.CIT(A) has elaborately discussed the incriminating evidences found from the premises of the assessee at page 12 of his order which clearly demonstrate that the assessee had availed accommodation entries in respect of capital assets as well as raw material purchases. Therefore, we don’t find any error in the decision of ld. CIT(A). Accordingly, these 3 grounds of appeal of the assessee stand dismissed. Disallowance of interest u/s 36(1)(iii) - interest expenditure were related to bogus capital assets - HELD THAT:- During the course of appellate proceedings before the ld. CIT(A) the assessee was asked to furnish the detail of the funds actually utilized in acquiring bogus capital assets, however, the assessee had failed to furnish the required details. Considering the detailed finding of the ld. CIT(A) showing that claim of interest expenditure were related to bogus capital assets and assessee was failed to prove contrary in spite of giving opportunity, this ground of appeal of the assessee stand dismissed. Addition made u/s 69C being commission paid @ 1% for obtaining accommodation bills - HELD THAT:- During the search action u/s 132(4) of the Act, Shri Sudeep Dutta has admitted in his statement reproduced of the assessment order that assessee had obtained accommodation entries from various purchase parties and most of these accommodation entries were merely accounting entries based in the books of account without actually movement of material/capital goods and in most of the cases without corresponding payment/cheques. The assessee has also admitted that cheques for accommodation entries were issued to the bogus concern and subsequently, the cheques were realized/converted by Shri Hasmukh G. Mehta into equivalent amount of cash after deducting his commission. In the light of the above facts and detailed finding of CIT(A), we don’t find any infirmity in the order of the CIT(A). Accordingly, this ground of appeal of the assessee stand dismissed.
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