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TMI Blog2016 (11) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... ted upon the assessee. Accordingly the grounds from ITA No.445/Del/2014 are reproduced hereunder for ready-reference:- 1. "The Commissioner of Income Tax (Appeal) erred in law and on facts of the cases in deleting an addition of Rs. 32,20,420/- on account of unexplained expenditure u/s 69C of the IT. Act. 2. The Commissioner of Income Tax (Appeal) has erred in law and on facts of the case in deleting and addition of Rs. 1,78,272/- on account of 50% disallowance of expenditure claimed by the assesses. 3. (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." 2. Addr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared income was Rs. 1,011/-. Subsequent to the issuance of notice u/s 143(2) and 142(1) etc. the AO took notice of the fact that the assessee company belonged to the "Thapar Homes Group" of cases. The director of the company was Mr.Inder Dev Sharma, a close associate of M/s Thapar Home Group of cases. One of the main allegations against the group is that several concerns have been floated by the group with dummy Directors and shareholders. These concerns were considered to be basically capital formation concerns which it was considered had build up huge reserves & surplus over the years. These Reserve & Surpluses were found to have been declared invested in stocks of textiles. As and when cash was required the stocks were claimed to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses" claimed were also held to be not supported with proper evidence. 50% of the same in both the years was disallowed leading to addition of Rs. 1,78,272/- and 23,450/- in 2003-04 & 2004-05 AYs respectively. 5. Aggrieved the assessee came in appeal before the CIT(A). It is seen that the decision of the CIT(A) from para 6.1 to 6.17 shows that the AO was directed not to make any separate addition on account of purchase or expenditure. The AO was instead directed to work out the peak from the entries from the cash books including bank transactions and make the additions accordingly. 6. Aggrieved by this, the Revenue is in appeal before the ITAT. On a consideration of the order of the ITAT passed by the Co-ordinate Bench in order in ITA No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive of the actual Business/commercial transactions. 6.16. Therefore, the action of the Assessing Officer, in disregarding the 'purchases', the 'sales* and 'expense', is upheld. Since the appellant company along with the other companies are all 'in-house' to the Thapar-Dhingra group and there is a widespread web of inter se transactions amongst them, keeping their sc oar ate juridical identity in mind, the ends of justice will be met if in each case, addition of the peak of financial transaction, as worked out from the relevant cash book of each entity, is made. Therefore, the addition made by the Assessing Officer needs to be revisited. It may he mentioned that while the rejection of the books and the book resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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