TaxTMI 
TaxTMI 
2021 (10) TMI 858
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....al No.CIT(A)-54/IT-10391/DCCC-6(2)/2017-18 & CIT(A)-54/IT-10393/DCCC-6(2)/2017-18 dated 11/02/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.153C r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 20/12/2017 by the ld. Dy. Commissioner of Income Tax, Central Circle 6(2), Mumbai (hereinafter referred to as ld. AO). ITA No.2983/Mum/2019 (A.Y.2014-15) This appeal in ITA No.2983/Mum/2019 for A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-54, Mumbai in appeal No.CIT(A)-54/IT-10376/DCCC-6(2)/2017-18 dated 08/02/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.153A r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as A....
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....h was received back as under:- Sr. No. AY Amount 1 2010-11 86,33,500 2 2011-12 51,50,000 3 2012-13 64,35,000 4 2013-14 57,42,679 3.1. The inflation of expenses for the A.Y. 2012-13 was accepted by the assessee group in principle subject to the actual claim of expenses in the sum of Rs. 28,76,106/-. In other words, it was pointed out that the actual expenses is only Rs. 28,76,106/- and not Rs. 64,35,000/-. We find that the inflation of expenses for each of the aforesaid Asst Years has been accepted by the assessee group concerns before the Hon'ble Income Tax Settlement Commission wherein 12% of the inflated expenditure has been offered by them as income. We find that the ld AO had duly recorded the fact that all the seized do....
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....ssessee, the incurrence of business expenses of Rs. 2,00,000/- would suffice. Accordingly, the ld CITA allowed a sum of Rs. 2,00,000/- and directed the ld AO to disallow the remaining expenses of Rs. 26,76,106/-. Aggrieved by this direction, the assessee is in appeal before us. 3.3. We find the facts prevailing in assessee's case and facts prevailing in assessee's group cases who had preferred application before the Hon'ble Income Tax Settlement Commission are identical. There is no dispute on this aspect. It is not in dispute that assessee had resorted to inflation of expenses by making certain cheque payments and receiving back cash in return. It is not in dispute that the said cash had already also been utilised for the purpose of meeti....
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....Mum/2019 - Asst Year 2013-14 - Assessee Appeal 5. We find that the facts and the nature of addition made for the A.Y. 2013-14 are exactly identical with the facts prevailing in A.Y. 2012-13. In this year, the ld AO had made an addition of Rs. 57,42,679/- u/s 68 of the Act on account of inflation of expenses , ignoring the fact that the actual expenses involved for the year is only Rs. 11,44,080/-. We find that the ld CITA had allowed Rs. 2,00,000/- as genuine business expenses for maintaining the corporate structure and directed the ld AO to disallow the remaining expenses of Rs. 9,44,080/-. Aggrieved by this direction, the assessee had preferred an appeal before us. Since this issue is already adjudicated by us in A.Y. 2012-13 supra, the....
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....ntained by the assessee evidenced booking of expenses in the form of cheque payment and receiving back cash for the same. This inflation of expenses was determined by the ld AO at Rs. 7,84,932/-. We find that the ld AO had observed in page 4 of his order that this figure is reflected in the seized material that cheque of Rs. 7,84,932/ -was received back in lieu of which cash of Rs. 7,84,932/- was paid by the assessee company (emphasis supplied by us). We find that the assessee company had categorically denied the transaction of inflation of expenses before the ld AO for the year under consideration. The ld AO however did not heed to the contentions of the assessee and proceeded to treat the cash payment of Rs. 7,84,932/- u/s 69 of the Act i....
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....ise and conjecture. Aggrieved by this, the assessee is in appeal before us. 8.2. At the outset, we find that the main grievance of the assessee seems to be that it had not received any cheque for Rs. 7,84,932/- and the same is not to be seen in its regular books of accounts. We find that both the ld CITA had observed in para 4.3. of her order that the details of cheque receipt of Rs. 7,84,932/- has been furnished by the ld AO to the assessee. This is factually incorrect as the assessee had specifically raised an objection in writing before the ld CITA that it is not known from where the ld AO had taken the figure of Rs. 7,84,932/- alleging the same to be receipt of cheque. The objections of the assessee before the ld CITA had not even been....