2018 (12) TMI 1384

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....)(b)ii of the Income Tax Act on account of salary remuneration to Director. 4. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in deleting 50% of the total addition of Rs. 38,60,500/- made by AO on account of bogus expenses and receipts from M/s ESAJV. 5. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in deleting the addition of Rs. 65,78,666/- made by AO on account of unexplained investment u/s 69 of the Income Tax Act. 6. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in deleting the addition of Rs. 4,65,000/- made by AO on account of unexplained cash credit u/s 68 of the Income Tax Act. 7. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in deleting the addition of Rs. 1,31,863/-, Rs. 6,76,299/- being false expenses and Rs. 8,48, 803/- made by AO on account of unexplained credit of money. 8. (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 course of the hea....

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....ing 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 supporting bills etc. It was further submitted that the AO has not pointed out any specific error or mistake in the details submitted by the assessee. It was further argued that the AO is making a general observation ignoring the facts and the evidences on record. It was also submitted that all the details and information were available at the time of survey also and it is not the case of the assessing officer that the books of accounts and other details were not available at the time of survey. In fact survey report if any has not been shared or confronted to the assessee at any time. It was also submitted that no incriminating material or evidence what so ever was found during the course of the survey. It was submitted that the allegation of the AO in the assessment order is totally false. We have examined the order passed by the authorities below and the details placed on records. On going through the same we find that the contention of the learned AR is correc....

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....by the Assessing Officer in the assessment order. The CIT(A) in that case has also given relief of 50% of the total addition. We have decided the appeal in the case of ACIT vs. Piron Education Pvt. Ltd. (ITA NO. 3699/Del/2015) (AY 2011-12) vide order dated 31.10.2018 whereby we have held that this addition is unsustainable on the ground that the assessee having included the service charges in its income, the same amount cannot be added again. It was agreed by both the Ld. DR and Ld. AR that the facts of the present case are identical to the facts in the case of Piron Education Pvt. Ltd. (Supra). This entire amount of Rs. 38,60,500/- forms part of the receipt declared by the assessee as its income in the Profit & Loss account of the year under consideration. Accordingly following the reasoning given in our order dated 31.10.2018 in the case of ACIT vs. Piron Education Pvt. Ltd., (Supra), we direct the Assessing Officer to delete the entire addition on this account. In the result ground no. 4 of Revenue's appeal is dismissed. 7. Ground no 5 in Revenue's appeal is relating to deletion of addition of Rs. 65,78,666/- made by AO on account of unexplained investment under section 69....

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....r is placed in PB. Pg. 266-287 which include confirmation, copy of ledger account, copy of bank statement and copy of audited financials. This is a proprietorship concern of one of the director Mr. Ashish Aggarwal. As per the profit and loss account it has made a sale of Rs. 4,98,28,165/-. It has filed the income tax return declaring a taxable income of Rs. 10,19,401/- which include profit from this concern of Rs. 8,87,582/-. This concern has got loan from banks and other financial institutions which include NSIC Ltd. The payment has been made from its regular bank account maintained with Vijaya Bank. It has a running account being a sister concern with assessee as is evident from the copy of account placed at PB. Pg. 267. 13.3 The second case is that of Piron Consulting Pvt. Ltd. This is a sister concern of the assessee. The assessee has received a sum of Rs. 8,94,100/- during the year and paid the same back during the year. The documents filed before the AO in respect of this creditor is placed in the PB. Pg. 288-306 which include confirmation copy of ledger account, bank statement and audited balance sheet and ITR. This company is being assessed with the same AO and in ....

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....e copy of account placed at PB. Pg. 390. This company has a gross income from operation of Rs. 2,14,64,220/- and assessment of this company has also been completed by the same AO vide order dated 28th January, 2014 and no adverse inference has been drawn in respect of the transaction entered into by the assessee with this company. All the payments are through regular bank account and there is nothing abnormal in the bank statement and the transaction entered into by the assessee. 13.6 The fifth case is that of Mr. Ashish Aggarwal, Director of assessee company. The assessee company has received a sum of Rs. 7,64,453/0 and paid back Rs. 7,64,453/-. The documents filed before the AO in respect of this account are placed at PB. Pg. 256 to 265 which include confirmation, copy of ledger account, bank statement and ITR. The assessee has also filed audited balance sheet and profit and loss account of the proprietorship firm of Mr. Ashish Aggarwal also. As per the ITR the taxable income declared is 10,19,400/-. This is also a running account with a director Mr. Ashish Aggarwal as is evident from the copy of account placed at PB. Pg. 258. The AO has simply added the aggregate credit....

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....Y 2011-12) and has deleted the addition. Since the facts in the present case are identical to the above case following the order in the above said case we uphold the order of the Ld. CIT(A) in deleting the above addition and this ground no. 5 of the Revenue is dismissed. 8. Ground No. 6 in Revenue's appeal is regarding the deletion of addition of Rs. 4,65,000/- made by AO on account of unexplained cash credits. The Assessing officer has made the addition on the ground that Assessee Company has deposited cash in its bank accounts. It was agreed by both the parties that this issue is identical to the issue in the case of M/s 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 M/s Piron Education Pvt. Ltd. we have held that the addition is unsustainable as the cash deposited is as per the books of accounts being regularly maintained by the assessee and such cash in books of accounts represents the fee receipt from the students which has been included in the income. Since the facts are identical following our order and the reasoning in the above said order we uph....