2013 (8) TMI 950

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....ng 10-5-2012. Assessee has filed application for condonation of delay contending that father of concerned director Shri S.K. Gupta was critically ill and expired on 22-4-2012. In these circumstances, the assessee was prevented by sufficient cause from filing the appeals. 3. Ld. DR is heard.   4. I have heard rival contentions. In my considered opinion, in the above facts and circumstances the assessee's plea for delay in filing the appeals deserves to be accepted. Accordingly, the delay in filing the appeals is condoned. 5. Following common grounds are raised: The CIT(A) erred in confirming the order of assessing officer passed u/s 143(3) estimating the undisclosed income without there being any material as against the returned inc....

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....ct of software development as well as details of persons who studied the cites on respective dates as claimed in the audit statement. No such documentary evidence was produced. 6.3. The assessing officer made detailed observations and in essence held as under: (i) The assessee failed to provide any documentary evidence in respect of its accounts, receipts and expenses. (ii) The assessee had thus failed to substantiate its return and undisclosed income mentioned therein. (iii) There were various discrepancies relevant to accommodation entries business in respect of entries provided and the expenses claimed. The assessee's business was treated as sham and undisclosed income was computed @ 2% net income on dummy sale and turn over and inve....

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....e in the hands of the appellant company for the Assessment year under consideration in this appeal. Therefore, the above contention is misplaced and is therefore rejected as such. 2.3.4. The other contention of the appellant is that no expenses have been allowed out of the additions made on account of commission earned for providing accommodation entries which is not justified. Suffice it to say that the AO has estimated and applied a net rate of 2% and therefore there was no reason to allow any expenses out of it. This contention is also, therefore, rejected. 2.3.5. Taking into consideration the totality of facts and circumstances of the case as discussed hereinabove, it is held that the addition made by the AO on account of net income e....

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....ed in any actual business at all, therefore, the returned income constitutes the assessee's own offer on the basis of its method. (ii) On the basis of evidence, statement and other record, assessing officer came to the conclusion that the assessee was engaged in accommodation entries and from the verifiable turn over figure an estimate of 2% has been made, which is a faire estimate, as no arbitrariness has been demonstrated. (iii) The assessee's account remained engaged in nepharious activities of providing accommodation entries on one hand and claims to be assessed at his desired rate of profit on the other hand. (iv) Neither before the assessing officer nor before the CIT(A) nor before the ITAT, the assessee has filed any evidence to s....