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TMI Blog2012 (10) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... diture claimed by the assessee. 4. That the Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the statements of various person without being confronted to the assessee have no evidentiary value and they did not have any connection with the assessee, without properly appreciating the facts and circumstances of the case. 5. (a) The order of the CIT (A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." The ground of assessee's cross objection read as under :- "1. That in view of the facts & circumstances of the case and in law the CIT (A) has erred in not holding that the notice issued U/s 153C and the assessment order passed U/s 153C/143(3) are illegal, bad in law & without jurisdiction. 2. That admittedly, as recorded in the satisfaction note, no seized document related to the relevant assessment year was found and the seized paper referred in the said satisfaction note were duly reflected in the regular books of A/c and no incriminating material was found. Hence the notice issued U/s 153C is illeg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account and registers filed were not rejected. Same is the case of the assessee. Ld. AR made available the copies of these three decisions of ITAT, Delhi Benches in the case of ACIT, Central Circle 21, New Delhi vs. Blue Luxury Impex Pvt. Ltd. in ITA Nos.5495 to 5500/Del/2011 dated 13.06.2012; ACIT, Central Circle 21, New Delhi vs. Anupama Links Pvt. Ltd. in ITA No.4135 to 4140/Del/2012 dated 12.10.2012 and ACIT, Central Circle 21, New Delhi vs. AA Testronics Solutions Pvt. Ltd. in ITA Nos.4223 to 4228/Del/2012 dated 12.10.2012. Further, ld. AR pleaded that in these cases, the relief has been granted by following the decision of Hon'ble jurisdictional High Court in the case of CIT vs. Radhika Creation reported in (2011) 10 Taxmann.com 138 (Delhi) wherein the Hon'ble High Court has held that there cannot be addition u/s 69-C for recorded expenses in the books. Ld. AR vehemently pleaded that appeals of the revenue be dismissed. He also pleaded that in all these cases, the addition has been deleted on merits. Ld. AR has not pressed the cross objection wherein the proceedings u/s 153-C has been challenged. 4. Ld. DR relied on the order of the Assessing Officer. 5. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h expenditure and not on the authenticity of the expenditure itself. It is an admitted position that the expenditure was shown by the assessee in its regular books of accounts and it is because of this reason that the Income-tax Appellate Tribunal had observed:- "As the expenditure was accounted in the regular books, the source is obviously explained. The provisions of Section 69C are not applicable as there was no unaccounted expenditure." [Emphasis supplied]" 6. What the Assessing officer attempted to do was to go into the authenticity of the expenditure and he returned a finding that the expenditure was not authenticated by vouchers and consequently, he added the said expenditure as unexplained expenditure under Section 69C. We are in agreement with the observations and findings of the Commissioner of Income-tax (Appeals) as well as that of the Income-tax Appellate Tribunal that this is not a case which falls under Section 69C. Clearly, Section 69C refers to the 'source of the expenditure' and not to the expenditure itself. Consequently, the Assessing Officer was clearly wrong in treating the said expenditure as unexplained expenditure under Section 69C of the said Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the Revenue did not place any material before us, controverting the aforesaid findings of facts recorded by the ld. CIT(A) so as to enable us to take a different view in the matter, we have no basis to interfere. In view thereof, ground nos.1 & 2 in the appeal are dismissed." In another case, the ITAT in the case of ACIT vs. Anupama Links Pvt. Ltd., cited supra, has held as under :- "8. Having considered the written submissions filed on behalf of the assessee and the contentions of the Ld. DR, it is seen that the matter is indeed covered in favour of the assessee by "Blue Luxury Impex Pvt. Ltd" (supra). The first and foremost, the survey in the case of the assessee is the same as that in "Blue Luxury Impex Pvt. Ltd". The Assessing Officer in the two cases is also the same. The trade of both the assessees is one and the same i.e., trade of textiles. Then, in both cases, books and stock register were filed and the Assessing Officer did not reject the same. The Ld. CIT (A) has, as noted hereinabove, taken into account the fact that all the sales made by the assessee stood recorded in the assessee's books of account, which included the sales and purchase vouchers and stock regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees is one and the same i.e., trade of textiles. Then, in both cases, books and stock register were filed and the Assessing Officer did not reject the same. The Ld. CIT (A) has, as noted hereinabove, taken into account the fact that all the sales made by the assessee stood recorded in the assessee's books of account, which included the sales and purchase vouchers and stock registers maintained by the assessee on a day-to-day basis. These books of account were duly produced before the Assessing Officer and the Assessing Officer examined them, on examination, no negative observation thereagainst was recorded by the Assessing Officer. Complete names and addresses of the parties to whom the goods were sold were available with the Assessing Officer. Most of the customers were assessed to income-tax. Sales were made against the opening stock. The purchases made during the year and the sales were but conversion of stock. The profit therefrom had already been taxed. The Assessing Officer did not bring anything on record to indicate that the sale proceeds represented the assessee's income from undisclosed sources. The sale transactions with M/s Micron Textiles were got confirmed by the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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