TMI Blog2017 (4) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... invested by the assessee company in the above transaction will properly be taxed if the peak amount is taken as income of the assessee which Ld. CIT appeal has adjudicated, with which we also agree. In view of this we do not find any infirmity in the order of the Ld. CIT appeal in restricting the addition on account of bogus purchases and bogus administrative expenses of ₹ 8517740/– and ₹ 346294/– to the extent of ₹ 1392364/– on the peak basis. - Decided against revenue - ITA No. 3402/Del/2014 - - - Dated:- 10-4-2017 - SMT BEENA A PILLAI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Revenue : MS Nirupama Kotru, CIT DR For The Assessee : Sh. Bhupesh Kumar, Dingra, CA ORDER P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th dummy directors and shareholders engaged in capital formation, which have huge buildup of reserves and surpluses over the years invested in stock of textiles. As and when cash is required, the stock of fabric is sold, and the money is utilized for other purposes as per requirement. He also noted that during the course of search no stock of textile fabric was found. The above company was incorporated on 31st. December 2002 and subsequently in assessment year 2003 04 to 2009 10 under section 153A and 153C the sales and purchases made by the assessee were held as nongenuine. Therefore, on the same set of facts, during the current year the assessee has made purchases of ₹ 8 517740 and net sales of ₹ 6 909972/ were recorded. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k entries to infuse unaccounted money in other companies of the group. He further referred to Para No. 7.3 of the order of the Ld. CIT appeal to say that assessee operated as accommodation entry providers. He further submitted that when the Ld. CIT appeal has confirmed rejection of the books of accounts there is no reason to not to sustain the addition of bogus purchases. He further referred to Para No. 7.9 of the order of the Ld. CIT appeal wherein it has been mentioned that the appellant was one of the several entities in the whole scheme of network of companies belonging to one group which were used to infuse unaccounted money in other companies of the group through a well orchestrated arrangement of infusing unaccounted transactions ema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy been dissolved under section 560 of the companies act. He therefore referred to the decision of the Hon ble Delhi High Court in case of Vivid Marketing services private limited in ITA No. 273/2009 dated 17/09/2009 wherein on identical circumstances of the facts the order of the tribunal has been upheld holding that there could not have been any assessment order passed against the company which was not in existence. As of the date in the eyes of the law as it had already been dissolved, no such order could have been passed. 5. We have carefully considered the rival contentions, orders passed by the lower authorities, as well as the paper book submitted by the appellant. During the course of assessment proceedings at page No. 31 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case also, there is no averment by any of the parties that the finding given by the Ld. CIT appeal in Para No. 7.12 wherein he has not followed the decision of the coordinate bench giving specific reasons, is erroneous. The Ld. 1st appellate authority has held that the facts of those cases do not apply to the facts of this case because in the present case the books of accounts of appellant are not maintained on account of any regular business activity but merely it records make-believe transactions that existed only on paper, to build a reservoir of bogus stock earnings in crores which could be transacted on paper so as to explain the introduction of unaccounted cash in the other actual running business of the group or of others. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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