2018 (11) TMI 392

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....evenue in its appeal read as under: 1. The ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in allowing the relief of 50% of the total addition of Rs. 33,09,000/- made by AO on account of bogus expenses and recipts from M/s ESAJV. 2. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in deleting the addition of Rs. 24,37,500/- made by AO on account of unexplained cash deposits u/s 68 of the Income Tax Act. 3. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in deleting the addition of Rs. 19,75,000/- made by AO on account of unexplained share premium u/s 69A of the Income Tax Act. 4. The Ld. Commissioner of Income Tax (Appeals) has erred in ....

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....mbly, designing, installation of furniture and also providing architecture services. The assessee has filed its return of income on 29.09.2011 declaring an income of Rs. 6,45,030/-. The AO has completed the assessment at Rs. 1,19,96,670/- u/s. 143(3) of the Income Tax Act, 1961 (in Short "Act") vide his order dated 28.01.2014 by making various addition and disallowances. Against the order of the AO, the assessee appealed before the Ld. CIT(A), who vide his impugned order dated 25.03.2015 deleted the various additions except the one where he gave a partial relief. Aggrieved by the order of the Ld. CIT(A), the Revenue is in appeal before the Tribunal. The assessee has also filed cross objection in respect of the addition confirmed by the Ld.....

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....e result ground no. 1 of Revenue's appeal is dismissed and ground no. 2 and 3 of assessee's cross objection is allowed. 6. Ground no. 2 in Revenue's appeal is regarding the deletion of the addition of Rs. 24,37,500/- made by the AO on account of unexplained cash deposits. It was agreed by both the parties that this issue is identical to the issue in the case of ACIT vs. Piron Education Pvt. Ltd. (ITA NO. 3699/Del/2015) (AY 2011-12), where the Assessing Officer has made similar addition on the same reasoning. In the said appeal in the case of ACIT vs. Piron Education Pvt. Ltd. (AY 2011-12) vide order dated 31.10.2018, we have held that the addition is unsustainable as the cash deposited is as per the books of accounts being regularly mainta....

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....e of deleting this addition and accordingly this ground no. 3 of Revenue's appeal is dismissed. 8. Ground no. 4 in Revenue's appeal is regarding deletion of addition of Rs. 36,30,143/- made by AO on account of bogus expenses. On the issue of the observations made by the Assessing Officer in the assessment order that the assessee was not carrying out any activities on the basis of the survey report it was submitted by the learned AR that the observations of the AO are factually incorrect. The assessee has been carrying on its activities and it has provided all the details in support thereof as asked for by the AO during the course of the assessment proceedings which included the list of faculty, training program, course material and support....