TaxTMI 
TaxTMI 
2014 (4) TMI 440
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 3. The grounds of the appeals In ITA No. 4147/Del/2012 are as under:- "1. That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs. 8,03,063/- made by the Assessing Officer on account of unexplained purchases u/s 69C of the Income Tax Act, 1961. 2. That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs. 2,08,002/- made by the Assessing Officer by way of disallowance of 100% of expenditure and depreciation claimed by the assessee. 3. (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 cou....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... illegal, bad in law & without jurisdiction. 6. That on the facts and circumstances of the case and the provisions of the law, the ld CIT(A) has erred in not considering the fact that the assessment proceeding for the year under appeal was not pending on the date of the recording of satisfaction u/s 153C of the Act and accordingly the same did not abate for the purpose of initiation of proceedings u/s 153C and as such the assessment being bad in law deserves to be quashed." 5. Apropos Ground No. 1 and 2 which are the common grounds of Appeal in all the appeals of revenue, which are in respect of deletion of addition on account of unexplained purchases u/s 69C of the Income Tax Act, 1961 (herein after 'the Act') and deletion of addition of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Assessing Officer was of the Central Circle 21 and the appellate authority ld CIT(A)-II was also the same. According to the ld AR, like in those cases decided by the Tribunal the Assessing Officer and the ld CIT(A) are same in assessee's case. The ld AR submitted that like in those cases, the impugned additions were also made on account of the very same reasoning and findings; and conclusions as arrived by the Assessing Officer in assessee's case. In all these cases, the trade was textile; and books of account and registers filed were not rejected. Identical is the case of the assessee. Ld AR made available the copies of these three decisions of ITAT in the case of ACIT, Central Circle21, New Delhi Vs. Blue Luxury Implex Pvt. Ltd. in ITA N....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e submissions of the assessee in respect of purchases and sales. Accordingly, the ld CIT(A) deleted the aforesaid additions in these six assessment years. While interpreting the provisions of section 69C of the Act, Hon'ble jurisdictional High court in Radhika Creation (supra) held that the focus of section 69C is on the "source" of such expenditure and not on the authenticity of the expenditure itself. In that case also it was an admitted position that the expenditure was shown by the assessee in its regular books of account and it was because of this reason that the ITAT observed as under:- "As the expenditure was accounted in the regular books, the source is obviously explained. The provisions of section 69C are not applicable as there....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of expenditure, which was not related to the business of the assessee, we are not inclined to interfere. Therefore, ground No. 3 in these appeals is also dismissed. 8. In view of our aforesaid findings, rejecting the appeals of the Revenue, the grounds raised by the assessee in their COs become purely academic and therefore, do not survive for our adjudication." 11. This decision was followed by the ITAT in the case of Anupma Links Pvt. Ltd. in ITA No. 4135-4140/Del/2011 order dated 12.10.2012 as well as in the case of AA Testronics Solutions in ITA No. 4233-4228/Del/2010 order dated 20.10.2012 and was followed by the ITAT Delhi Bench in ITA Nos. 1068-1073/Del/2012 and CO Nos. 173-178/Del/2012 by order dated 31.10.2012. Hence on merit th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efrom had already been taxed. The Assessing Officer did not bring anything on record to indicate that the sale proceeds represented the assessee's income from undisclosed sources. The sale transactions with M/s. Micron Textiles were not confirmed by the Assessing Officer on a test check basis. No more inquiries were made by the Assessing Officer thereafter. The assessee's books of account were audited books of account. The tax audit report was on record. The auditors had not made any negative observations therein. All these facts were duly taken into consideration by the ld CIT(A) and it was thereupon that the issue was decided in favour of the assessee. 9. So far as it regards "Anupama Links Pvt. Ltd." (supra), under similar facts and cir....