2022 (8) TMI 602

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....ave been raised in these appeals, therefore same were heard together and disposed off by way of this consolidated order for convenience. ITA No. 6121/MUM/2018 Assessment Year: 2008-09 2. Firstly, we take up the appeal for assessment year 2008-09. The grounds of the appeal are reproduced as under: 1. On facts and circumstances of the case, the Ld. CIT(A)-50, Mumbai erred in not holding that the order passed u/s. 143(3) r.w.s. 153A by the DCIT, CC-8(3), Mumbai ("Assessing Officer) is without jurisdiction, invalid and bad in law. 2. The Ld. CIT(A) erred in facts and law in upholding the addition of loan amounting to Rs. 60,00,000/- by treating it as accommodation entry. 3. 3. The Ld. CIT(A) erred in facts....

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....nder section 153A on 31/03/2016 made various additions and assessed total income at Rs.1,13,34,860/-. On further appeal, the Ld. CIT(A) rejected the grounds of the assessee and dismissed the appeal. Aggrieved the assessee is before the Tribunal by way of raising grounds as reproduced above. 4. Before us the Ld. counsel of the assessee filed a paperbook containing pages 1 to 51. 5. The Ld. counsel of the assessee did not press ground No. 1 of the appeal being general in nature. He also did not press the ground No. 2 to 4 of the appeal. Accordingly, ground No. 1 to 4 of the appeal are dismissed as infructuous. 5.1 Regarding ground No. 5 to 7 the Ld. counsel submitted that additions made are not based on any incriminating material fou....

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....spect of the ground No. 5 to 7 of the appeal, the objection of the assessee are that no assessment proceedings were pending in respect of the assessment year under consideration as on the date of the search and also addition has been made without any reference to incriminating material. We find that Revenue has not challenged the fact of non-pendency of any assessment on the date of search. From the assessment order, we find that addition in dispute in ground No. 5 and 6 have been made on the basis of ITS details. The relevant finding of the Ld. Assessing Officer are reproduced as under: "5. As per ITS, the assessee had received interest of Rs. 1,21,423/- on FDs which is not offered in the return of income. The assessee submitted t....

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....rial has been found, relating to accommodation entries taken by the Appellant, which has already been discussed in great details in the earlier part of the appellate order. The same is not repeated here for the sake of brevity, but it is relied upon to prove that there is incriminating material on record to hold that the appellant has taken accommodation entries by paying entry charges." 7.2 We find that there is no specific reference of any incriminating material for sustaining the addition in dispute of Rs.32,50,000/- which was made by the Assessing Officer under section 68 of the Act. 7.3 In view of above, both the conditions of the decision of the Hon'ble Delhi High Court (supra) in the case of Kabul Chawal (supra) that for making....

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.... of Rs. 38,75,000/- cannot be made u/s. 68 of the Act devoid of any incriminating material found in the course of search once the assessment had already attained finality prior to the date of search (c) The Id. CIT(A) has even erroneously mentioned the fact in para 17.2 of his order that no assessment order u/s. 143(3) is passed prior to search. 4. All the above grounds are independent and without prejudice to each other." 9. At the outset Ld. counsel of the assessee submitted that assessee is not pressing ground No. 1 and 2 of the appeal and therefore both these grounds are dismissed as infructuous. 10. In respect of the ground No. 3, wherein the addition made of Rs.38,75,000/- of unexplained cash credit terms of se....

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....was not possible to make any verification. The amount is appearing as liability in the balance she of the assessee and the onus is on the assessee to explain cash credit appearing in his books of accounts as per the provisions of section 68 of the Income Tax Act 1 at is to establish identity of the party, genuineness of transaction and creditworthiness of the party. The assessee failed to offer any explanation at all on this liability as appearing in his balance sheet. Mere filing of confirmation is not sufficient in view of decision of Hon'ble Supreme Court in the case of Durgaprasad More 82 ITR 510. The Hon'ble Kerala High Court in the case of M/s. Diza Holdings Pvt. td 120 Taxmann 539 has held as under: On the terms of s....