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TMI Blog2016 (7) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... e was critically ill; confined to bed and finally passed away. On account of remaining pre-occupied with the above tragedy the appeals it was stated could not be filed on time. Inviting attention to the copy of the order dated 14.02.2014 in ITA Nos.-3213, 3214 & 3856/Del/2012 & 1080/Del/2013 in the case of Konichiva Builders Ltd. it was submitted that on identical facts delay of 43 days had been condoned by the Co-ordinate Bench. Relying on the same it was submitted that the delay may be condoned. The Ld. DR considering the order of the Tribunal and the petition of the assessee had no objection if the appeal is decided on merits by condoning the delay in each of the appeals. 3. Considering the facts on record and the submission of the parties we are of the view that the delay pointed out by the Registry deserves to be condoned. Respectfully following the order of the Co-ordinate Bench the delay in the appeals is condoned. 4. Ld. AR inviting attention to the assessment order under consideration submitted that the assessee who is found mentioned at Sl. No.-17 in the list of companies where Konichiva Builders Ltd. is found mentioned in Sl. No.-1. It was submitted that the Tribunal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Swen Television Ltd. 4. T & G Quality management consultants Ltd. 5. Hitech Computech Pvt. Ltd. 6. Centenary software pvt. Ltd 7. Trump and Gates 8. T & G Quality Servrces 9. GTM Konichiva Builders 10. Gupta Rakesh Associates 11. Era Advertising and Marketing Coy Pvt Ltd 12. PG Travels Hindustan Com 13. Shark Communication Pvt Ltd 14. Spg Finvest Pvt Ltd. 15. Krishna Informedia 16. Bolni Exim India Ltd 17. Bharti Properties Pvt Ltd 18. Marketing Insurance Brokers Pvt Ltd 19. Cam Soft (lndia) Pvt Ltd 20. Ours Trading Pvt. Ltd 21. Pawar Estates Pvt Ltd 22. Rajdhani Leasing Ltd 23.DMC Vaults Ltd 24. Sigma Farms Ltd 25. North India securities Pvt Ltd 26. Hamara Samay TV News Network Pvt Ltd 27.Cel Cel Technologies Ltd 28. Chip Set Solutions Pvt Ltd 29. Trump & Gates 30. Servel Technology System Pvt. Ltd. 31. PG Travels Hindustan Com Pvt Ltd 32. J.A. Financial & Marketing Consultants Pvt. Ltd. 33. Saksham Infocom Pvt Ltd 6.1. Considering the following facts which have been summed up in the impugned order the AO in the year under consideration made an addition of Rs. 1,97,938/-. The relevant extra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of Shri S.K.Gupta and has confronted him in detail about the findings." 6.2. On the basis of the above facts the AO arrived at the following conclusions. These are extracted from the assessment order:- 4. "Inferences:- i. It is proved beyond doubt on the basis of documentary evidences, confessional statement of Shri. S.K.Gupta, the main person controlling the state of affairs of the assessee. Husband of Smt. Saroj Gupta, director of the assessee company and results of the assessment that assessee is engaged in the accommodation entry business and not doing any genuine sale & purchase as claimed in the final account statements annexed with return of income. ii. Since assessee has failed to produce any regular books of account, sale & purchase and expenses vouchers the book results shown by the assessee are liable to be rejected by taking recourse to provisions or section 145 (3) of IT Act 1961. iii. The assessee has not been successful in establishing that any genuine business activity was being carried out other than the accommodation entry business. No physical evidence of supporting infrastructure was found by the investigation wing at the time of search nor the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estment entries @2% of Rs. 83,95,000/- Rs. 167900 Rs. 201334 6.3. In appeal before the First Appellate Authority the CIT(A) held as under:- "2.3.5. Taking into consideration the totality of facts and circumstances of the case as discussed hereinabove, it is held that the addition made by the AO on account of net income earned from accommodation entry business to the tune of Rs. 197938/- is justified and is, therefore, confirmed. Since the AO has given a categorical finding that the appellant had only indulged in accommodation entries business and had not done any genuine business and rejected the books results on that ground, the net profit shown in the return has lost its relevance and should not be given any credence. The AO is, therefore, directed to recomputed the total income accordingly. This disposes off all the grounds of appeal taken by the appellant against the impugned assessment order." 7. Aggrieved by this the assessee in appeal before us has raised the following grounds:- "That on the facts and in the circumstances and in the law the authorities below erred in : 1. Determining taxable income of Rs. 2,01,330/- as against the returned income of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found to have been maintained. In these circumstances, the books of accounts of the assessee were rejected and additions were made on estimate basis, the same were affirmed by the Ld. CIT(A) in appeal." 8.1. The issue pertaining to books of accounts etc. was considered by the Coordinate Bench in the following manner:- 6. "The first issue pertains to rejection of books of accounts. Ld. Counsel of the assessee in this regard submitted that he is not vehemently pressing this issue. We find that in the search and on the basis of material recovered and statements obtained it has been duly established that assessee was indulging in bogus accommodation entries. No actual sale and purchase was done by the assessee. Proper books of accounts were not maintained. In these circumstances, we do not find any infirmity in the orders of the authorities below in which the books of accounts have been rejected." 8.2. It is seen that considering the statement recorded of Sh. S.K.Gupta which facts have been summed in the following paras 8 & 9 in the order of the Coordinate Bench which are identical to the facts in the present proceedings also. It is seen that it is this statement which forms the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture has been incurred cannot lead to allowance of expenditure. Assessee has to prove with cogent material that the expenditure has been incurred to earn the income. In these circumstances we remit the issue to the file of the AO. The Assessing Officer shall examine the aspect of allowance of expenditure on the basis of cogent materials to be submitted by the assessee. 9. In the afore-mentioned peculiar facts and circumstances addressing the limited plea of the assessee in the light of the arguments advanced by the parties before us wherein Ld. AR has placed reliance upon the order of the Division Bench in the case of Konichiva Builders Ltd. and the Ld. DR has not opposed it. In the facts before us, Ld. AR has drawn specific attention to Question No.-2 which has been extracted in the case of Konichiva Builders Ltd. also in para 8 of their order which is also considered at page 15 of the Assessment order in the year under consideration. In view of the above there being no change in facts and circumstances of these cases respectfully following the order of the Tribunal in Konichiva Builders Ltd., the issue of allowability of expenses in similar lines is restored to the AO herein al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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