TaxTMI 
TaxTMI 
2012 (7) TMI 467
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....saction made in cash by the assessee company regarding sale & purchase. 3. That the ld.CIT(A) erred in law and on facts of the case in deleting the addition of Rs. 1,23,920/- in the AY 2003-04; Rs.1,27,671/- in the AY 2004-05;`.1,33,093/- in the AY 2005- 6; Rs. 2,80,240/- in the AY 2006-07; Rs. 1,45,928/- in the AY 2007-08 & Rs. 1,64,692/- in the AY 2008-09 made on account of disallowance of 50% of expenditure and depreciation. 4. (a) The order of the CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." CO nos.31/Del/2011 to 36/Del/2011 "1. That in view of the facts & circumstances of the case and in law the CIT(A) has erred in not holding that the notice issued u/s 153C and the assessment order passed u/s 153C/143(3) are illegal, bad in law, without jurisdiction and barred by time limitation. 2. That the documents found during search proceedings, as referred to in the satisfaction note, do not belong to assessee as the same were part of working papers of the C.A. Sh. B.K.Dhingra in whose office the search was conduc....
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....Act') was conducted in the premises of shri B.K.Dhingra, C.A., Smt.Poonam Dhingra and M/s Madhusudan Buildcon Pvt.Ltd. on 20th October, 2008. During the course of search at their residential premises at F-6/5, Vasant Vihar, New Delhi, certain documents belonging to the assessee were seized. Consequently, a notice u/s 153C of the Act read with sec. 153A of the Act, was issued to the assessee on 8th July, 2010 for the aforesaid six assessment years. In response, the assessee filed following returns declaring income as detailed hereunder:- Assessment year Date of filing Income [in Rs.] 2003-04 8.9.2010 1480 2004-05 8.9.2010 1700 2005-06 8.9.2010. 1150 2006-07 8.9.2010 1620 2007-08 8.9.2010 2860 2008-09 8.9.2010 3090 3.1 During the course of assessment proceedings, the Assessing Officer[AO in short],inter alia, noticed that the assessee company, incorporated on 1.6.1998, belonged to Thapar Group of cases, was involved in floating several concerns with dummy directors and shareholders and formed capital with huge reserves and surplus..These reserves were stated to be invested in stocks of textiles As on 31.3.2002, the ass....
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....unted for by the appellant in its books of accounts. And when the transaction has been duly accounted for in the books of accounts and more particularly when the books of accounts has not been rejected by the AO, no question of disallowance of purchases u/s 69C arises. The judgement in the case of CIT Vs. M/s Radhika Creation ITA No.692/2009 by Hon'ble Delhi High Court is squarely applicable to the present facts of the case as all the purchase are accounted in the regular books, the source is obviously explained. The provisions of sec 69C are not applicable as there was no unaccounted expenditure. In view of the above the addition of Rs.30,28,254/- made by the AO on account of purchases u/s 69C is deleted." 4.1 Likewise, in respect of the addition made u/s 68 of the Act, the ld. CIT(A) deleted the addition as under:- "30. The above said submissions of the appellant were forwarded to the AO for its comments. The AO vide letter dated 16.08.2011 has submitted his remand report and on this issue he has not stated any thing else specifically except placing reliance on the findings and observations in the assessment order. 31. I have considered the assessment order, written subm....
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....t and loss account of the appellant company and from the same it is observed that the company has incurred an expenditure of Rs.2,47,840/- only. During the search proceedings no material has been found which justifies the disallowance of the expenses. Complete books of accounts were produced before the AO. He has not pointed out any defect in the correctness or completeness of the books of accounts. Moreover books of accounts are duly audited under the companies act. There is no negative observation in the auditors report. It is further observed that the assessment of the appellant company for the AY 2002-03 has already been completed wherein no disallowance of the expenses was made. The appellant has placed reliance on the various judgments wherein it has been held that following the rule of consistency on identical facts separate conclusions by the revenue authorities are not in order. In view of the above in my considered opinion there is no substance in the lump sum disallowance of 50% the expenses of Rs.1,23,920/- and accordingly AO is directed to delete the addition on this account. In view of this position the grounds of appeal no.9, 10, 11 & 12 raised by the appellant are a....