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2016 (6) TMI 688

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..... case is identical that of Madanlal L.Chandak (Shah)[supra] and respectfully following the decision of Coordinate Bench and for similar reasons, we direct the addition made on account of commission income from issuance of bogus bills be restricted to ₹ 2 lacs as against ₹ 4,06,852/- that were sustained by the ld.CIT(A) for AY 2007-08. - Decided partly in favour of assessee - ITA No (s). 2649/Ahd/2014, 2650/Ahd/2014, CO 69/Ahd/15, CO 70/Ahd/15 - - - Dated:- 16-6-2016 - Shri R. P. Tolani, Judicial Member And Shri Anil Chaturvedi, Accountant Member For the Assessee : None For the Revenue : Shri K. Madhusudan, Sr. DR ORDER Per Bench Appeals by the Revenue are directed against the common order of the Commiss .....

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..... rger number of concerns of Mehsana and Patan Districts of Gujarat during Financial Years 2006-07 onwards. In view of this, statement of assessee was recorded u/s.131 of the Act. Thereafter, the case of the assessee was reopened by issuing notice u/s.148 of the Act dated 01/08/2011 and the reasons were reopening of the assessment were communicated to the assessee and the assessee was requested to file the return of income. AO noted that despite various opportunities granted to the assessee, assessee remained non-cooperative. AO was therefore compelled to finalize the assessment proceedings u/s.144 of the Act vide order dated 07/03/2013. AO noticed that assessee had opened four bank accounts for the purpose of bogus billing (the year-wise and .....

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..... accounts Shri Madanlal L.Chandak has also accepted in his statement that he was using Vishal Traders for facilitating different parties to have bogus bills. He has also stated that he introduced many parties to Shri Dharmendra J.Pandya. The facts and circumstances of the case show that the appellant and Shri Madanlal L.Chandak were working in connivance and for this purpose the appellant could not have allowed to use his name and bank accounts for the purpose of facilitating parties to get the bogus bills without any consideration. In the statement dated 26/09/2008, the appellant has mentioned the names of 14 parties to whom the bogus bills were issue without any delivery of the items. He also stated that he used to receive ₹ 2,000-R .....

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..... Rs.4,06,85,237/- Rs.20,34,260/- Rs.4,06,852/- Rs.16,27,408/- 2008- 09 Rs.33,89,89,074/- Rs.1,69.49.453/- Rs.33,89,890/- Rs.1,35,59,563/- 4. Aggrieved by the order of ld.CIT(A), Revenue is now in appeal before us and has raised following common grounds:- 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in law in restricting the addition made by the assessing officer from 5% on total deposits in bank to 1% without any cogent reason. 2. The Ld.CIT(A) erred in not appreciating that she cannot substitute estimates .....

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..... T B Bench Ahmedabad) had decided the issue by granting partial relief to Assessee vide order dated 02/05/2014. He placed on record the copy of the aforesaid order. He however supported the order of AO. 6. We have heard the ld.Sr.DR perused the material available on record and gone through the orders of the authorities below. The issue in the present case is with respect to the commission income determined in the case of assessee on the bogus bills issued by assessee. We find that AO while framing the assessment order u/s.144 of the Act had estimated the commission income of 5% of the total bogus sales bills which was reduced to 1% by the ld.CIT(A). We find that the Coordinate Bench of Tribunal while deciding the issue in the case of Ma .....

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..... IT(A) that the assessee was in the business of earning commission income and the assessee must have earned commission from M/s.Vishal Traders also. Accordingly, we find that the Department was justified in assuming that the assessee must have earned certain commission income from his business of arranging bogus bills. However, in our opinion, no incriminating material was found even after the conduct of the search operation at the premises of the assessee in the form of bills or bank account, or property documents or investment in movable and immovable properties, either on his own name or in the name of any his family members, and once the Department could not place any material on record, even after the completion of search operation, sug .....

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