TMI Blog2021 (10) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... esult of search and belongs to or pertains to or relates to the assessee qua the assessment year. CIT(A) properly appreciated the effect of the documents and rightly applied the binding precedent rendered by Hon ble Apex Curt in the case of CIT vs. Sinhgadh Education Society(supra). We, therefore, do not find anything illegality or irregularity in the findings of the ld. CIT(A) and as a result, decline to interfere with the same. We, accordingly, find the grounds of appeal as devoid of merit and dismiss the same. - ITA Nos. 5166, 5167 & 5168/Del/2018 (Assessment Years: 2010-11, 2011-12 & 2014-15) - - - Dated:- 9-9-2021 - SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER Appellant by: Sh. H.K. Choudhary, CIT/DR Respondent by: None ORDER PER K. NARASIMHA CHARY, J.M. Aggrieved by a common order dated 17.05.2018 passed by the Commissioner of Income Tax (Appeals)-IV, Kanpur ( Ld. CIT(A) ) in the cases of Sundaram IT Parks Pvt. Ltd.,( the assessee ) for the assessment years 2010-11, 2011-12 and 2014-15, the Revenue preferred these appeals. 2. Brief facts of the case are that the assessee is a part of Tirupati S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the record we proceed to hear the counsel for Revenue and decide the matter on merits. 5. It is the argument on behalf of the Revenue that in the satisfaction note, the learned Assessing Officer had clearly brought out all the facts and circumstances, which indicated the names of the entities including the assessee, appearing on seized documents were in the nature of accommodation entries only for doubting the undisclosed income of the Tirupati Sunworld Group Companies and hence such documents constituted incriminating material for the purpose of assessment under section 153C of the Act. Ld. DR further submitted that since all such identities of the Tirupati Sonworld Group were found to be engaged in routing the unaccounted funds by laying through various entities including assessee, controlled by them as mentioned in the satisfaction note, the mere fact that the entries were recorded in regular Balance Sheet of the beneficiary could not by itself allow the treatment of such seized documents as non-incriminating in the context of entities providing accommodation entries, namely, assessee, as the expression used under section 153C of the Act is in relation to person other than th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machal Pradesh), Muzajfarnagar etc. Information have been received that the Tirupati-Sunworld Group Of Companies are engaged in huge generation of cash in their real estate and other businesses. It is alleged that several companies of group of companies having share premium account worth several crores are funding their bogus capital account as well as unsecured loans from non-existing, bogus companies/concerns of Kolkata, Delhi Muzaffarnagar providing accommodation entries into the group companies. In the process, the out of books cash generated is being infused in these group companies which in-turn is being used to provide unsecured loans to other group companies. During the course of search at A-4, Ground Floor, Sector-4, Noida, UP in the case of M/s Sunworld Developers Pvt, Warrant u/s. 132 (1) of the Act was executed and during the course of search incriminating documents were found and seized such as A-4 page No-43, A-5 Page No-96, 98, A-6, Page 52, to 54 A-12, page 52 to 58 etc. During the course of Search at the residential premise of Mukul Gupta YK Gupta at A-76 Sector 76,Noida , A-2 Page No-10 etc. The cases of this group are interconnected and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finalization of balance sheet and Profit Loss a/c for 31.3.2014 and there is nothing incriminating. On finalization of balance sheet 31.3.2014 again the computation was prepared by Auditors and submitted to Income Tax Deptt with the return of income. vi) A-5/Paqe 97: Depreciation is claimed in the balance sheet as per Companies Act and then chart is prepared for depreciation as per Income Tax Act 1961. There is nothing incriminating in the calculation of depreciation. In the computation for 31.3.2014, Depreciation as per Companies Act was added to income and depreciation as per IT Act 1961 was deducted. There was nothing incriminating in this document. vii) A-5/Paqe 98: It is again a draft of computation of income for AY 2014- 15 before finalization of balance sheet for 31.3.2014. It is just a draft and nothing incriminating in this. 9. On an appraisal of the contents of the documents, ld. CIT(A) recorded that undisputedly certain documents were seized, but the contents thereof are reflected in the books of account and financial statements maintained and submitted by the assessee to the authorities and therefore, they cannot be dubbed as incriminating ..... X X X X Extracts X X X X X X X X Extracts X X X X
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