TaxTMI 
TaxTMI 
2021 (1) TMI 727
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.... consolidated and disposed of by this common order 3. At the outset it is noted that there is a delay of 40 days in filing the appeals. Upon perusing the reasonable cause for the delay the same is condoned. 4. The ground raised in A.Y. 2010-11 reads as under :- 1. The learned CIT(Appeals) erred in confirming the addition made by learned. DCIT of Rs. 13,10,141/- on notional basis by treating genuine sales made by Appellant to M/s. Ecoscapes International Pvt. Ltd. as bogus. 5. The ground raised in A.Y. 2011-12 reads as under :- 1. The learned CIT(Appeals) erred in confirming the addition made by learned. DCIT of Rs. 9,15,154/- on notional basis by treating genuine sales made by Appellant to M/s. Ecoscapes Internati....
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....le private limited and M/s. Ecoscapes International Pvt. Ltd are companies controlled and operated by him. Further it was stated by Shri KirttKumar Tarachand Doshi that he along with his companies were not involved in real trading activities and the trading shown in the companies controlled and operated by him is without taking actual delivery of goods. Consequently, notice u/s.153A dated 03.10.2016 was issued and served on the assessee. in response to the notice u/s.153A of the Act, the assessee company has filed its return of income on 28.09.2017 declaring total income of Rs. 415,96,980/-. Later, the case was assigned to this charge i.e. DCIT - CC 2(1), Mumbai on 06.09.2017. The assessee company is engaged in trading in cloth/fabrics/f....
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..... and M/s. Rare Earth-A Div of M/s. Ecoscapes International Pvt. Ltd. furnish any evidences of the octori paid by either of the said parties. The Assessing Officer proceeded to hold that this goes to prove the contention of Shri Kirti Kumar Tarachand Doshi wherein he had stated that the trade with the Mirah Group is done without actual delivery and the prices of the goods are decided as per the convenience of the parties. 10. Therefore referring to several case laws, the Assessing Officer concluded that from the above facts it can be seen that the assessee has indulged in bogus sales to M/s. Ecoscapes International Pvt. Ltd. However, the Assessing Officer did not deduct any amount from the sale reported by the assessee. Thereafter, th....
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.... reasonable and fair as commission of only 2% is added back." 12. Against this order assessee is in appeal before us. We have heard both the parties and perused the records. Learned counsel of the assessee detailed his submissions and summarised as under :- A) The Assessing Officer has made notional addition by estimating 2% of the sales made to M/s. Ecoscapes International Pvt. Ltd. Asstt. Year 2010-11 Rs. 13,10,141/- Asstt.Year 2011-12 Rs. 9,15,154/- B) A.O. has not disputed the income derived on sales made to M/s. Ecoscapes International Pvt. Ltd. and income derived there from has been assessed to tax. C) Details of PAN, VAT Return and TAN, proper Address, Financial Statement, Bank Statement of M....
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....2618/Mum/2018 in the case of Gammon Infrastructure Projects Ltd. vide order dated 06/02/2020 ii) 380 ITR 573 (Del.) CIT vs. Kabul Chawla iii) 374 ITR 645 (Bom.) CIT vs. Continental Warehouse Corporation iv) 397 ITR 82 (Del.) Pr. CIT vs. Best Infrastructure (India) Pvt. Ltd. H) Addition made relying on statement of third party without affording opportunity to cross examine. Addition unsustainable. Reliance on Hon'ble Apex Court order in Civil Appeal No.4228 of 2006 in the case of M/s. Andaman Timber Industries." 13. Per contra CIT-DR referred to the finding of search and the orders of assessing officer and CIT(appeals) and supported the orders. 14. Upon careful consideration we find that....