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TMI Blog2025 (5) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... , for the Assessment Year (AY) 2014-15. 2. The grounds of appeal raised by the revenue are as under: "(i) On the facts and circumstances of the case and in law, the Id. CIT(A) has erred in deleting the addition from Rs. 10,94,05,000/- made on account of section 69A of the Act as the assessee neither in the assessment proceedings nor in the appeal proceedings produced any cogent evidences to prove that the amount credited in the bank account pertains to its business receipts. (ii) On the facts and circumstances of the case and in law, the Id. CIT(A) has erred in not appreciating that during the assessment proceeding and during the inquiry of the STR as well during the assessment proceedings of the assessee it is clearly established that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sheetal Exports vide letters dated 21.02.2023, 19.04.2023 and 21.04.2023. He submitted that total transactions with M/s Sheetal Exports were of Rs. 11,44,45,048/-. It received the said amount out of sale of polished diamond worth Rs. 3,08,18,637/- and other transactions were on current account with the said concern. The AO observed that transactions with Sheetal Exports are only sham transactions to accommodate funds in the name of running business activities of cut and polished diamonds. He issued show cause as to why the same amount should not be taxed u/s 69A r.w.s. 115BBE of the Act. The assessee filed reply on 18.05.2023 which was not found satisfactory by the AO. He got field verification conducted through the Verification Unit and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) concluded that M/s Sheetal Exports was actually engaged in diamond trading during AY.2014-15. As Sheetal Export was actually engaged in business during 2014-15, there was no reason to presume that the bank transfer with the appellant was bogus. The CIT(A) also found that the case of appellant for AY.2014-15 also assessed u/s 143(3) of the Act by the AO of the Central Circle pursuant to a search conducted in the year 2013. After verifying books of account, AO made addition of Rs. 9,36,808/-. In the appellate order, the CIT(A) held that there is no incriminating material which would justify addition u/s 153A of the Act. Further, no defects were pointed out by AO in the regular books of account. The bank transactions with M/s Sheetal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the returned income of M/s Sheetal Exports and did not make any addition. Hence, addition cannot be made in case of the assessee. The ld. AR also relied on the decision of Hon'ble Gujarat High Court in case of CIT vs. Vishal Exports Overseas Ltd., TA No.2471 of 2009, dated 03.07.2012. 7. We have heard both the parties and perused the materials available on record. We have also deliberated upon the case laws relied upon by ld. AR. We have also gone through various assessment orders and appellate orders relied upon by ld. AR. The AO made the addition of Rs. 10,94,05,000/- u/s 69A of the Act on the ground that no business activities were actually carried out by M/s Sheetal Exports from its premises. During field verification by the Verific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actually engaged in business, the bank transactions with the appellant cannot be treated as bogus. He also found that bank transactions with M/s Sheetal Exports are incorporated in the books of account of the assessee. He also found that in the parallel proceedings by the Central Circle, assessment was completed in case of M/s Sheetal Exports where transactions by the said firm were found not to be accommodation entries. After going through various details including the assessment orders referred to by the CIT(A), we do not find any infirmity in his findings. The finding of CIT(A) that M/s Sheetal Exports was actually engaged in normal business during the year under consideration has not been rebutted by the revenue by producing any details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) when he was not having any jurisdiction. 4. On the facts and circumstances of the case as well as law on the subject, the Id. Assessing officer has erred in passing order u/s 148a9d) without obtaining proper approval u/s 151. 5. On the facts and circumstances of the case as well as law on the subject, the Id. Assessing officer has erred in issuing notice u/s 148 on the basis the judgment of Hon'ble Supreme Court in cased of UOI vs. Ashish Agarwal, Civil Appeal No.3005/2022, dated 4th May, 2022, when the judgment didn't suggest that income chargeable to tax has escaped assessment in assessee's case. 6. On the facts and circumstances of the case as well as on the subject, the Id. CIT(A) has erred in not adjudicating variou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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