Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 370 - ITAT MUMBAIEstimation of income - Disallowance of purchases - Assessee failed to establish the genuineness of the transaction - assessment passed u/s 143(3) r.w.s. 153C came to the conclusion that the assessee in collaboration with Shri Shirish C Shah brought the share capital through preferential allotment and invested the amount with ultimate beneficiaries in the share capital with huge share premium - assessee has failed to establish the genuineness of the transaction reflected in the profit and loss account and the assessee was engaged in the business of providing accommodation entries to various parties HELD THAT:- In the present case, the assessee apart from placing reliance upon the invoices, Ledger account of the vendors, and stock register neither could produce confirmation from the parties from whom the purchase was made nor could produce the confirmation from parties to whom the sale has been made. We find that in the case of one of the companies, i.e. M/s Empower India Ltd., which is controlled by Shri Shirish C Shah, the AO vide order dated 22/03/2016 passed under section 143(3) r.w.s. 153C of the Act, forming part of the paper book, treated 1% of the total sales as the commission earned from the provision of accommodation entry in the similar facts and circumstances. Since the assessee is also found to be involved in the process of providing accommodation entries at the behest of Shri Shirish C Shah, we direct the AO to consider 1% of the total sales declared during the year as net commission in the hands of the assessee for providing accommodation entry. Accordingly, ground no. 3 raised in assessee’s appeal is partly allowed.
|