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TMI Blog2022 (5) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... r case. The assessee has assailed the impugned order on the following grounds before us: "1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the investigation wing in initiating search and seizure action against the appellant, which is bad, illegal, void and is without jurisdiction as the same was merely on suspicion without any evidence or material information, more so when the survey was already undergoing and found nothing incriminating and without the satisfaction of requirements of section 132(1) of the Act. 2. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case was listed for hearing before us on nine occasions but neither the assessee has attended the appellate proceedings nor furnished any details before us, therefore, the appeal of the assessee is adjudicated after hearing the ld. D.R and after taking into consideration the material on record. 3. The fact in brief is that return of income declaring total income at Rs.501,01,890/- was filed on 28.09.2010. Assessment u/s 143(3) of the Act was completed on 26.11.2012 assessing the total income at Rs.502,24,660/- . The search and survey action was carried out in the case of Shri Pravin Kumar Jain and his group concern on 1.10.2013 resulted into collection of evidences and other finding which proved that Shri Pravin Kumar Jain through the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee was converted into search action on 28.03.2014. During the course of search action several evidences were found which revealed that the assessee's claim of acquiring and installing certain assets at its factories was found to be non-genuine considering that the inword registers of such factories did not have any such entries of having received/installed the said assets. The details of such incriminating evidences are elaborated at page 12 of the order of the ld. CIT(A) and the same was also corroborated by the statements recorded of the relevant persons at the time of search action. Similarly, premises of Hasmukh Mehta who had acted as a broker for providing bogus accommodation entries to the assessee group was also covered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus capital assets, and disallowed Rs.17,51,188/- out of interest expenditure claimed by the assessee. 7. During the course of appellate proceedings before the ld. CIT(A) the assessee was asked to furnish the detail of the funds actually utilized in acquiring bogus capital assets, however, the assessee had failed to furnish the required details. Considering the detailed finding of the ld. CIT(A) showing that claim of interest expenditure were related to bogus capital assets and assessee was failed to prove contrary in spite of giving opportunity, this ground of appeal of the assessee stand dismissed. Ground No. 5: Addition made u/s 69C being commission paid @ 1% amounting to Rs.74,495/- for obtaining accommodation bills: 8. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Mum/2019, therefore, the same is applying mutatis mutandis for disposing off these grounds of appeal and the same stand dismissed. Ground No. 4: (Disallowance of deduction u/s 80IC of Rs.10,84,000/-: 12. During the course of assessment proceeding the A.O noticed that assessee has claimed an amount of Rs.10,84,000/- under the head other income on account of excise refund as eligible for deduction u/s 80IB/80IC pertaining to eligible unit located at Sikkim. The A.O had rejected the claim of the assessee for deduction u/s 80IB/80IC after following the decision of Hon'ble Supreme Court in the case of Sterling Food Limited 237 ITR 579 (SC) wherein it is held that the profits arising on sale of import entitlements provided by the Government as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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