9911796707
TMI Blog2025 (5) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... site details as called for by the Assessing Officer. 3. During the course of assessment proceedings the Assessing Officer noted from the perusal of the seized documents and the statements given during the search action that the assessee was engaged in providing data entries for purchases made by M/s. BVG India Ltd. He noted from the details furnished and the appraisal report of the investigation wing that the assessee has made sale of Rs. 11,36,79,121/- in financial year 2017-18 relevant to assessment year 2018-19 to M/s. BVG India Ltd. He, therefore, issued a show cause notice asking the assessee to furnish the details such as all purchase bills, sale bills, delivery challans of the above mentioned transaction with M/s. BVG India Ltd and also to give details of all the concerns which operated from the said premise i.e. Room No.1330, Building No.45, Near Pant Nagar Post Office, Ghatkopar (East), along with details of proprietor, director, and address of all premises including place where books of accounts are kept maintained and nature of business involved. He also asked the assessee to produce the ledger account of all parties from whom the assessee has made purchases of goods wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, during the search and post search enquires, Shri Rakesh Mehta failed to make any submissions, substantiating the genuineness with valid supporting documents of the transactions having taken place. 3.5 In the statement of Madhuchandra Kalaskar (AGM Finance M/s BVG India Ltd) provided that delivery of cash to BVG India Ltd was facilitated by Shri Rakesh Mehta. From above instances, it is clear that M/s H. H. Traders, prop- Smt. Hetal Mehta and M/s V. H. Group prop Shri Rakesh Mehta HUF are merely accommodation entry providers and have not sold any goods to M/s BVG India Ltd. 3.6. Having said that, it is common practice in this line of business to charge commission on the bogus entry provided by way of sales. But, the assessee has not offered any such income in the return filed by her. After considering the facts of the case and the evidences found during the search action, I estimate the commission @ 1% of the sales made by the assessee which comes to Rs. 11,36,791/-, which is added to the total income." 5. Before the Ld. CIT(A) the assessee apart from challenging the addition on merit, challenged the validity of the addition. It was argued that in absence of any incrimin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oprietor of M/s Mahavir Steels, Shri Bhavesh C. Gandhi admitted that he has provided accommodation entries in the form of bogus bills and did not transport any material whatsoever, 9. The above facts clearly suggest that during the fact that the appellant had provided accommodation entries to BVG India in the form of bogus purchase bills, was discovered during the search only. Therefore, it cannot be said that the addition was not based on incriminating material discovered during the search. Accordingly, the ground no. 1 raised by the appellant is DISMISSED." 7. So far as the addition on merit is concerned, it was submitted that the assessee, during the course of assessment proceedings filed the following details which have been reproduced by Ld. CIT(A) and which read as under: "10......In this regard, the appellant has submitted that during the assessment proceedings, it filed various details such as copies of ledger account of purchases made, sales made, copies of sales invoices on sample basis, item-wise sales register, copies of GST returns, copies of bank statement, etc, which conclusively prove that it is carrying genuine trading activities. However, the assessing office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed) 12. Regarding the claim of supporting documents furnished during the assessment proceedings, it is seen that the appellant had furnished following documents:- i. Copy of ledger account for sales made during the year ii. Copy of ledger account for purchases made during the year. iii. Copy of ledger account of BVG India Limited. iv. Copies of some of purchase and sales invoices along-with Weighbridge slips. A perusal of these documents suggests that none of the purchase/sale Invoice or weigh-bridge slip pertain to alleged sales made to M/s BVG India Limited. 13. Till date, the appellant has not furnished the details of entities from whom purchases were made which are claimed to have been sold to M/s BVG India Limited. Neither any supporting document with regards to sales made to BVG India has been filed. On the other hand, M/s BVG India Limited has accepted that bank account of the appellant was used to transfer money through banking channels in the garb of purchases and the cash was received back from the appellant. 14. It may also be mentioned that while completing the assessment in the case of BVG India Ltd., the A.O. had held that the purchases claimed to have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal by raising the following grounds: 1. On the facts and circumstances of the appellant's case and in law, the Ld. Commissioner of Income Tax (Appeals) erred in upholding the addition of Rs. 11,36,791/- made in the assessment order passed by the Assessing Officer u/s 143(3) r.ws 153A of the Income Tax Act, 1961 on 30.09.2021 on account of alleged commission income despite the fact that the assessment for the year under consideration has attained finality and no assessment reassessment was pending as on the date of search and in the absence of any incriminating material in relation to alleged commission income, the addition was not permissible under the law. 2. On the facts and circumstances of the appellant's case and in law, the Ld. Commissioner of Income Tax (Appeals) erred in upholding the addition of Rs. 11,36,791/- made in the assessment order passed by the Assessing Officer u/s 143(3) r.w.s 153A of the Income Tax Act, 1961 on 30.09.2021 on account of alleged commission income @1% of sales from providing alleged accommodation entry to BVG India Limited disregarding the materials / evidence placed on record in support of the genuineness of transactions and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing evidence found. She also relied on the following decisions: i) M/s. Odeon Builders Pvt. Ltd. vs. CIT vide Review Petition (C) Diary No.22394 of 2019 in Civil Appeal Nos.9604-9605 of 2018, order dated 21.08.2019 ii) Krishnanand vs. The State of Madhya Pradesh AIR 1977 SC 796 iii) Jaydayal Poddar (Deceased) through his L.Rs & Anr. vs. MST Bibi Hazra and Ors. 1974 AIR 171 iv) Omar Salay Mohamed Sait vs. CIT AIR 1959 SC 1238 v) Dhirajlal Girdharilal vs. CIT vide Appeal (Civil) No.246 of 1953, judgment dated 25.10.1954 vi) M/s. Lalchand Bhagat Ambical Ram vs. CIT 1959 AIR 1295 vii) Ashish Batham vs. State of Madhya Pradesh vide Appeal (Crl.) No.148 of 2002, judgment dated 09.09.2002 viii) State vs. Gulzari Lal Tandon AIR 1979 SC 1382 ix) J.A. Naidu vs. State of Maharashtra AIR 1979 SC 1537 x) PCIT vs. Jagdish Thakkar (2022) 145 taxmann.com 414 (Bom) xi) PCIT vs. Tejua Rohitkumar Kapadia vide Tax Appeal No.691 of 2017, order dated 18.09.2017 xii) ACIT vs. Jindal Saw Piples Ltd. vide ITA No.221/2010, order dated 06.09.2010 xiii) CIT vs. K Mahim Udma (2000) 242 ITR 133 (Ker) xiv) Ram Niwas Gupta vs. DCIT vide ITA Nos.4881 to 4883/Del/2016, order dated 06.02. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Delhi) held that in case of unabated assessments, no additions could have been made without the aid of the incriminating material. In the case of the assessee search was conducted on 27.11.2019. The original return of income in the case for year under consideration was filed on 15.10.2016 and therefore, notice u/s 143(2) of the Act for selection of the case could have been issued up to 30.09.2017 and since no such notice was issued therefore, limitation for issue of notice u/s 143(2) of the Act had already expired before the date of execution of search, hence there was no pendency of the scrutiny assessment on the date of search. Therefore, the assessment year is in the category of the unabated assessment. The ratio in the case of Kabul Chawla (supra) has been upheld in the case of Abhisar Buildwell Pvt. Ltd. (supra) therefore, in the unabated assessment year only addition could be made on the basis of incriminating material found from the premises of the assessee. In the case of the assessee, the addition of Rs. 1 crores has been made in respect of unsecured loan of Rs. 1 crores received from M/s Vinam Finance Pvt. Ltd. The lower authorities in the impugned order have only menti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to Section 132 (4), which was inserted by the Direct Tax Laws (Amendment) Act, 1987 we.f. 1st April, 1989, further clarifies that a person may be examined not only in respect of the books of accounts or other documents found as a result of search but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under the Act. However, as stated earlier, a statement on oath can only be recorded of a person who is found in possession of books of accounts, documents, assets, etc. Plainly, the intention of the Parliament is to permit such examination only where the books of accounts, documents and assets possessed by a person are relevant for the purposes of the investigation being undertaken. Now, if the provisions of Section 132(4) of the Act are read in the context of Section 158BB(1) read with Section 158B(b) of the Act, it is at once clear that a statement recorded under Section 132(4) of the Act can be used in evidence for making a block assessment only if the said statement is made in the context of other evidence or material discovered during the search. A statement of a person, which is not relatable to any incriminating docu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
