TaxTMI 
TaxTMI 
2021 (9) TMI 880
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....ed identical worded grounds in all the three years but for the sake of brevity, we are reproducing the grounds from Assessment Year 2012-13 in ITA No.7414/Mum/2018 and will decide the issue. The learned CIT DR, Ms. Leena Srivastava also agreed that on the issue of commission on purchases added on notional basis by treating the purchases as bogus is common in all the three years, hence, ground Nos. 1 & 2 read as under:- "1. The Hon'ble CIT(Appeals) erred in confirming the addition of commission made by Ld. D.C.I.T. of Rs. 3,20,000/- on notional basis by treating genuine purchase from M/s Sarvesh Mercantile Pvt. Ltd. by Appellant as bogus and without any corroborating evidence to prove the receipt/ payment of commission in cash. 2. The Hon'ble CIT(Appeals) erred in confirming the addition of commission made by Ld. D.C.I.T. of Rs. 15,32,728/- on notional basis by treating genuine sales made by Appellant to M/s Ecoscapes International Pvt. Ltd. as bogus and without any corroborating evidence to prove the receipt/ payment of commission in cash." 3. We have heard the rival contentions and gone through the facts and circumstances of the case. Briefly sated facts are that the assessee....
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....urnish copy of service tax and VAT return alongwith all annexures and schedules, furnish copy of PF & ESIC returns, furnish complete details of payment made by M/s Ecoscape International Pvt. Ltd. The assessee in connection with the above submitted the following details:- "1. Copy of Ledger A/c of company in the books of M/s Ecoscapes international Pvt. Ltd. and M/s Rare Earth - Adiv of M/s Ecoscapes International Pvt. Ltd. alongwith bank statement of M/s Ecoscapes international Pvt. Ltd. with duly highlighting the transaction with us is enclosed herewith as "Annexure-1". 2. Copy of Audit report, audited balance sheet & Profit & Loss a/c along with all schedules of Ecoscapes International Pvt. Ltd. is enclosed herewith as "Annexure-2. 3. Copies of Purchase invoice, delivery challan in relation to purchase made from M/s Ecoscapes international Pvt. Ltd. during the year under consideration along with Courier receipts are enclosed herewith as "Annexure-3". 4. Copies of service Tax returns and VAT/CST Return of company (Mirah Dekor Pvt. Ltd.) along with VAT/CST paid challans and VAT audit report are enclosed herewith as "Annexure-4." 5. During the year, M/s Ecoscapes Internat....
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.... the assessment. We find that the assessee is correct in this regard that when the sale is taken into income, there cannot be a further addition of 2% notional addition for bogus sales. The same sale cannot be genuine and bogus at the same time. In this view of the matter the notional addition of 2% as bogus sales commission is not a sustainable. 15. The learned counsel of the assessee has raised various other grounds that in the submission above that observation of A.O. that M/s. Ecoscapes International Pvt. Ltd. is company controlled by Shri Kirti Kumar Tarachand Doshi is factually incorrect, that no evidence has been brought on record to show that assessee has paid any commission at 2% on the sales made to M/s. Ecospace International Pvt. Ltd. 16. Furthermore assessee's counsel has challenged that pursuant to search and seizure addition under section 153A is not permissible dehorse any incriminating material found during search. In this connection he referred to several case laws as above. In this regard learned departmental representative submitted that this limb of assessee's argument was never there before any of the authorities below. In rebuttal learned counsel of the a....
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....ese years also, respectfully following our finding in Para 6 of this order, we delete the addition of commission in these years also. 10. The next common issue in all these three appeals of assessee is against the order of CIT(A) confirming the action of the Assessing Officer in disallowing expenses relatable to exempt income by invoking the provisions of Section 14A of the Act, read with Rule 8D of the Rules at Rs. 1,29,74,532/- in Assessment Year 2012-13 at Rs. 2,08,97,247 in Assessment Year 2013-14 and at Rs. 3,10,82,872/- in Assessment Year 2014-15. For these common issues, the assessee has raised identically worded grounds in all these years. 11. At the outset, we have noticed that assessee in Assessment Year 2012-13 has received exempt income to the tune of Rs. 91,096/- in Assessment Year 2013-14 at Rs. 18,250/- and in Assessment Year 2014-15 at Rs. 19,697/-. In all these years, these are the quantum of dividend, which was received and claimed as exempt. On this, the learned Counsel for the assessee as well as learned CIT DR agreed that this issue is covered by the decision of Hon'ble Supreme court in the case of Maxopp Investment Ltd. vs. CIT [2018] 402 ITR 640 (SC), where....
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....eived on 11th September 2012 as per page no. 10 item no. 69 of Annexure A-1 & page no.9) 15,00,000 15,00,000 15,00,000 -- 7. Return of speed money out of Rs.35,00,000/- paid on 11th September 2012 as per page no. 10 (page No. 60) 14,66,000 14,66,000 14,66,000 8. Return of speed money out of Rs.58,00,000/- paid on 31st Auust 2012 as per page No.28 (page No. 62) 6,05,634 6,05,634 6,05,634 - - 11. Rough notings (page No. 30) 3,75,000 3,75,000 3,75,000 - - - - - - 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, th....