TMI Blog2022 (5) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 the search action and a diary was seized which had details of the various accommodation entries obtained by the assessee. During the course of appellate proceedings before us, the ld.CIT(A) has elaborately discussed the incriminating evidences found from the premises of the assessee at page 12 of his order which clearly demonstrate that the assessee had availed accommodation entries in respect of capital assets as well as raw material purchases. Therefore, we don t find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission. In the light of the above facts and detailed finding of CIT(A), we don t find any infirmity in the order of the CIT(A). Accordingly, this ground of appeal of the assessee stand dismissed. - ITA Nos. 5846 And 5847/Mum/2019 - - - Dated:- 12-5-2022 - Shri Vikas Awasthy, Judicial Member And Shri Amarjit Singh, Accountant Member For the Appellant : None For the Respondent : Achal Sharma ORDER PER AMARJIT SINGH, AM: The present appeals filed by the assessee are directed against the order passed by the ld. CIT(A), Mumbai, which in turn arises from the order passed by the A.O. u/s 143(3) r.w.s 153A of the Income Tax Act, 1961, for A.Ys. 2010-11 2011-12. We shall first take up the appeal i.e ITA No. 5846/Mum/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making disallowance of interest u/s.36(1)(iii) of the Income Tax Act, 1961 of Rs.17,51,188/- on the alleged plea that the funds were used for accommodation purchases, without considering the facts and circumstances of the case. 5. 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 Learned Assessing Officer in making an addition u/s 69C of the Income Tax Act,1961 on account of alleged commission paid @ 1% amounting to Rs.74,495/- for obtaining accommodation bills without any evidence of the same and without considering the facts and circumstances of the case. The appellant cra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and assessed the total income at Rs.544,91,420/- after making disallowance of depreciation of Rs.6,81,582/- on bogus assets, addition u/s 69C of Rs.74,495/- being unaccounted commission for availing accommodation entries and disallowance of interest expenditure of Rs.17,51,188/-. The assessee s claim of deduction u/s 80IB was restricted to the returned income of Rs.519,84,157/- as against the assessed income of Rs.544,91,420/-. Further facts of the case are discussed while adjudicating the ground of appeal filed by the assessee as under: Ground No. 1 to 3: Addition made without any incriminating document: 4. All these grounds of appeal filed by the assessee are interconnected, therefore, for the sake of convenience these are adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee stand dismissed. Ground No. 4: Disallowance of interest u/s 36(1)(iii) of the Act of Rs.17,51,188/-: 6. In the course of assessment proceedings the A.O observed that assessee has availed various loans for acquiring capital assets which were found to be bogus during the course of search action. Consequently, the assessing officer held that interest expenditure claimed for acquisition of the bogus capital assets cannot be allowed as revenue expenditure till the capital assets were put to use. During the course of assessment in spite of giving opportunity assessee had not furnished any details of the loan fund utilized for acquiring such bogus capital assets. Therefore, the A.O has estimated the interest expenditure related to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s purchase parties and most of these accommodation entries were merely accounting entries based in the books of account without actually movement of material/capital goods and in most of the cases without corresponding payment/cheques. The assessee has also admitted that cheques for accommodation entries were issued to the bogus concern and subsequently, the cheques were realized/converted by Shri Hasmukh G. Mehta into equivalent amount of cash after deducting his commission. In the light of the above facts and detailed finding of CIT(A), we don t find any infirmity in the order of the CIT(A). Accordingly, this ground of appeal of the assessee stand dismissed. 10. The appeal of the assessee stand dismissed. ITA No. 5847/Mum/2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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