TaxTMI 
TaxTMI 
2016 (5) TMI 468
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.... are arising out of the search conducted by the Revenue. The respective assessees have also filed crossobjections against the orders of the CIT(Appeals). Therefore, we heard all the appeals and the cross-objections together and disposing of the same by this common order. 2. The brief facts of the case are that there was a search in the premises of Sony Fireworks Private Limited on 21.10.2008 and in the residential premises of Shri P. Panjurajan. A simultaneous survey was also conducted under Section 133A of the Income-tax Act, 1961 (in short 'the Act') in the factory premises of the assesseecompany on the same day. Incriminating materials were found and seized by Revenue authorities. M/s Ajantha Trading Corporation is one of the ....
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....hat the first ground of appeal is with regard to addition of Rs. 11,19,465/-. He further submitted that during the year under consideration, the CIT(Appeals) found that the advance received from customers was only to the extent of Rs. 11,19,465/-. The CIT(Appeals) by placing reliance on the details filed by the assessee, came to a conclusion that the fresh advance was only Rs. 11,19,465/- and after allowing set off of Rs. 25,65,922/- from the total addition of Rs. 44,76,271/-, confirmed the disallowance of Rs. 18,06,969/-. According to the Ld. D.R., the CIT(Appeals) committed an error in observing that the new credits to the extent of Rs. 25,65,922/- was already allowed for the assessment year 2003-04. Therefore, the CIT(Appeals) is not jus....
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.... copies of the partnership deed was not filed before the lower authorities. Therefore, the Assessing Officer proposed to assess the income in the hands of M/s Sony Fireworks Private Limited. The assessee-company M/s Sony Fireworks Private Limited is trading in fireworks. Similarly, M/s Ajantha Trading Corporation is also trading in fireworks. Therefore, the advance said to be received and income accrued to M/s Ajantha Trading Corporation need to be assessed in the hands of the assessee-firm. Accordingly, a sum of Rs. 2,07,80,111/- was assessed substantively in the hands of M/s Sony Fireworks Private Limited. However, protective assessment was made in the case of Shri P. Panjurajan for the very same amount. The Ld. D.R. submitted that the CI....
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....poration needs to be assessed in the hands of M/s Sony Fireworks Private Limited and not in the hands of Shri P. Panjurajan. Now the only contention of the Revenue before this Tribunal is that the bank OD limit was considered in deleting the addition of Rs. 1,66,66,283/-, this Tribunal is of the considered opinion that it is found on record that there was transfer from sister concern OD limit of Rs. 1,25,00,000/-. This OD limit cannot be ignored by the authorities below. Therefore, we do not find any justification in the contention of the Ld. D.R. Accordingly, the order of the lower authority is confirmed. 11. Now coming to assessment years 2007-08 and 2008-09, the only contention of the Revenue is that the advance received from customer....
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....ntire credit statements filed by the assessee, found that there was negative figure. Therefore, there is no accretion to the credits of M/s Ajantha Trading Corporation in the books of sister concern. The CIT(Appeals) found that the onus is on the assessee to explain the credits in the bank account. Accordingly, the sum of Rs. 5,05,201/- was found credited in the books is added as unaccounted income of M/s Ajantha Trading Corporation for assessment year 2007-08. After considering, other credits found in the other assessment years, the CIT(Appeals) found that the advance received by the M/s Ajantha Trading Corporation is for sale of fireworks. M/s Ajantha Trading Corporation being a sister concern of the assessee, in the absence of material d....
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.... not in the hands of Shri P. Panjurajan or the so-called other partner. This Tribunal is of the considered opinion that M/s Ajantha Trading Corporation is another limb of M/s Sony Fireworks Private Limited. Therefore, the income accrued to M/s Ajantha Trading Corporation has to be assessed only in the hands of M/s Sony Fireworks Private Limited and not in the hands of Shri P. Panjurajan. Therefore, this Tribunal do not find any merit in the cross-objections of the assessee. 15. Now coming to Revenue's appeals in the case of Shri P. Panjurajan, we have heard Shri M.S.V.M. Prasad, the Ld. Departmental Representative and Shri V. Rajasekaran, the Ld. representative for the assessee. The CIT(Appeals) deleted the addition on the ground that su....