2017 (5) TMI 254

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....itted to providing accommodation entries. 2. The brief facts of the case are that on 12.12.2006 search and seizure action was conducted at the business of Shri. S.K. Gupta along with various concerns in which he and his family members were interested. Action under Section 132 of the IT Act, 1961 was conducted in the case of various companies owned or controlled by him and also in the case of different individuals connected with the said companies. From the computerized books of account seized during the search and the numerous bills seized from the business premises of Sh. S.K. Gupta, it was found that various companies controlled by him had issued bills to Link Engineers Pvt. Limited of substantial amount (for software development and f....

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....be towards personal items of expenditure of the promoter Shri Siddharth Sikka). 4. The assessee's appeal partly succeeded, in that the CIT (A) took note of the surrender made to the extent of Rs. 50 lakhs and deleted the balance. The CIT (A) noted: "It is seen from the records as well as the submission made by the appellant, that on the basis of survey conducted, the appellant voluntarily agreed for settlement with the Income tax department to buy peace. However, during the survey no unaccounted assets or any other incriminating documents were found. In fact the A.O. has elaborately commented upon absence of services rendered. The survey team on ~undisclosed amount at Rs. 50,00,000 in AY 05-06 and Rs. 50,00,000 in AY 06-07. There w....

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....t the addition cannot be made on the statement of Mr. S.K. Gupta which has later been retracted. There is merit in argument of the assessee. Following the decision of Hon'ble Delhi High Court in Cona Electric Co v CIT 152 ITR 507 It is held the statement of Sh. S K Gupta may be excluded from consideration, similarly the statement of M D Gupta also needs to be excluded from consideration." 5. The impugned order of the ITAT recorded as follows: "After carefully considering the arguments and written submissions of both the sides in the light of case laws cited, we find that Ld. CIT(A) has passed a well reasoned and elaborate order for both the years considering each and every aspect of the matters in detail and the basis and reasonin....