TMI Blog2021 (9) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... round of the assessee in all the three appeals is partly allowed. Unexplained expenditure under section 69C - HELD THAT:- We have also gone through these nothings and as well as loose papers, which are indicative of incomings and outgoings but these notings does not indicate which amount pertain to which document and these are dumb notings. Even Revenue now could not controvert the above arguments, hence, we are of the view that addition made by Assessing Officer under section 69C is without any basis and hence, we delete the same. This issue of assessee s appeal is allowed. - ITA No. 7414, 7415, 7416/Mum/2018 - - - Dated:- 13-8-2021 - Shri Mahavir Singh, VP And Shri S. Rifaur Rahman, AM For the Appellant : Shri K.P. Dewani, AR For the Respondent : Ms. Leena Srivastava, CIT DR ORDER PER MAHAVIR SINGH, VP: These appeals of the assessee are arising out of orders of the Commissioner of Income Tax (Appeals)]-48, Mumbai [in short CIT(A)], in Appeal Nos. CIT(A)-48/I.T-116, 135 136 /DCCC-2(1)/2017-18 vide dated 15.10.2018 31.10.2018. The Assessments were framed by the Dy. Commissioner of Income Tax, CC 2(1), Mumbai (in short DCIT/ AO) for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sales of ₹ 3,50,021/- less vat of ₹ 38,892/- to M/s Rate Earth Div of Ecoscapes International Pvt. Ltd. The Assessing Officer during the course of assessment proceedings called for the details of purchases made from Ecoscapes International Pvt. Ltd. and Rare Earth-A Div of Ecoscapes International Pvt. Ltd. to prove the genuineness of the transactions and sales made to Sarvesh Mercantile Pvt. Ltd. and Ecoscapes International Pvt. Ltd. He asked why the same should not be treated as unproved purchases and brought to tax. The assessee vide reply dated 24.10.2017 submitted the copies of ledger account of Sarvesh Mercantile Pvt. Ltd and Ecoscapes International Pvt. Ltd. to the Assessing Officer. It was also stated that during the year under consideration there is no sales/ purchase transaction was entered in to with M/s Symcom. It was also clarified that M/s Ecoscapes International Pvt. Ltd. is not controlled by Mr. Kiritkumar Tarachand Doshi. Further, the sales and purchase transactions entered into during the year under consideration by the assessee company with Ecoscapes International Pvt. Ltd. are independent genuine sales transactions and nothing to do with purchases t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was wholly on assessee to produce some corroborative evidences to substantiate its claim when show cause was given by AO regarding doubt on genuineness of transactions with their two parties. Case laws relied are irrelevant in view of facts of the assessee The various case laws relied upon by assessee are irrelevant as they are on different facts. In view of facts of assessee s case that apart from self serving ledger account or bank transaction, no other documentary evidence to substantiate the genuineness movement and purchase/ sale of goods, reliance on these case laws is dismissed. 5.1.7 In view of the above facts of the case and total failure on part of the assessee to prove the genuiness of the purchase/ sales made, I is held that there is no anomaly in the order of the AO. In fact, order of AO is very reasonable and fair as commission of only 2% is added back regarding there two parties. Aggrieved, now assessee is in appeal before Tribunal on both the grounds. 5. At the outset, the learned Counsel for the assessee stated that this issue is fully covered by Tribunal s order in assessee s own case in ITA Nos. 5318 5319/Mum/2018 for Assessment Years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n has already been deleted by us on merits, in our considered opinion the challenge to addition on other aspects are now only of academic interest. Hence we are not engaging in to the same. 6. As the facts and circumstances of the case are exactly identical in these years also, respectfully, following the Tribunal s order in assessee s own case, as nothing was controverted by learned Sr. DR, we are deleting the addition of commission made by Assessing Officer on notional basis by treating the genuineness of purchases from Sarvesh Mercantile Pvt. Ltd and assessee as bogus and subsequent sales made by assessee to Ecoscapes International Pvt. Ltd as bogus without any corroborating evidence to prove the receipt/ payment of commission in cash. We delete the addition and allow these two grounds of assessee s appeal. 7. Similar is the ground in Assessment Year 2013-14 in ITA No.7516/Mum/2018, i.e. ground No.1 regarding sales made by assessee to Ecoscapes International Pvt. Ltd. i.e. ground No. 1 which read as under:- 1. The Hon ble CIT(A) erred in confirming the addition of commission made by Ld. D.C.I.T of ₹5,85,280/- on notional basis by treating genuine sales ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er reconciliation statement. For this, assessee has raised the following ground No.7:- The Hon ble CIT(Appeals) erred in ignoring the Appellant s claim for reduction in addition on account of paper found with Vijay Misha as per reconciliation statement of ₹69,39,134/- (however the correct figure in dispute is ₹ 68,52,034/-) 13. At the outset, the learned Counsel for the assessee took us through the assessment order and it drew our attention to the computation made in regard to addition of ₹ 6,20,19,554/- and the relevant Para read ad under:- The submission of the assessee has been perused and the same is acceptable. In view of the same the total expenditure as per Annexure A-1 Annexure A-2 seized from Shri Vijay Mishra is produced here below; Particulars AY 2013-14 AY 2015-16 Total (Rs) Declaration as per para 3 (iii) of the assessee 6,06,16,554 2,12,21,550 8,18,38,204 Less:- deductions (A) 13710 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - - - - - 14. Amount not found in bundle Item No. 12 of Annexure A-1 ii. Item No. 33 of Annexure A-1 18,000 24,500 18,000 24,500 18,000 24,500 15. This is double entry of page no 40 wherein Anand and collected by Kancan as per page no. 39 entry transaction 10,00,000 10,00,000 10,00,000 69,89,134 15. These particulars were prepared on the basis of ceased documents which are enclosed at assessee s paper book pages 99-123 as explained by assessee. According to Assessing Officer, the learned Counsel, the Assessing Officer has made addition of ₹ 6,20,19,554/- on the basis of seized documents inventorised as annexure A-1 and A-2 found from the bag of one Mr. Vijay Mishra. The assessee has explained this during the course of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
