AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (10) TMI 845
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....a the assessee after hearing the learned Departmental Representative ("learned DR") and on the basis of material available on record. 3. Since all these appeals pertain to the same assessee and issues involved are, inter-alia, common, therefore these appeals were heard together as a matter of convenience and are being adjudicated by way of this consolidated order. The grievance of the assessee, in these appeals, can be categorised under following sub-heads: (a) invocation of reassessment proceedings under section 147 of the Act; (b) notice under section 143(2) was not served within the prescribed period; (c) addition on account of alleged purchases out of books; (d) disallowance of depreciation on account of bogus purchases of plant and machinery; (e) disallowance of payment of interest expenses; and (f) ad hoc disallowance of administrative expenses. 4. Our findings / conclusions on aforesaid issues shall apply mutatis mutandis to all the appeals. Further, as the basic facts in all the appeals are same, we have elaborately mentioning only the facts for the first assessment year (i.e. 2009-10) before us for the sake of bre....
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.... 2008-09 9.00 6. Hotline Textiles and Infra Pvt. Ltd. 2008-09 12.00 7. Instant Traders Pvt. Ltd. 2008-09 10.00 8. Jade Traders Pvt. Ltd. 2008-09 12.00 9. Loren Leasing and Infotech Pvt. Ltd. 2008-09 8.00 10. Oak Leasing and Infotech P. Ltd. 2008-09 8.00 11. Rosette Leasing and Infotech P. Ltd. 2008-09 8.00 12. Upright Leasing and Infotech P. Ltd. 2008-09 10.00 Total: 117.00 4. Further, It was also found that M/s. Ginger Enterprises Ltd has also claimed purchase of plant and machinery of Rs.100 Crores from M/s. Advik Textiles and Realpro Ltd during the financial year 2008-09. During the course of survey proceedings, the assessee was asked to furnish copies of purchase invoices, date of installation of machinery, place of installation and details of professionals involved in installation of machinery etc. But, Shri Sanjay Kumar Tayal has stated that the required information is not available with him and the same will be furnished in due course. He further stated that the said expenses claimed have not been made in purchase of plant and machinery and the substantia....
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....address of these companies is shown at Gala No. 6 or 1st floor of Raghuvanshi Mills, Lower Parel, Mumbai. Both these premises are belongs to Tayal Group of companies. Moreover, no business activities are carried out from Gala No. 6 Kamath Industrial Estate, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai. The addresses shown in the MCA site of these companies are as under: Sr. no. Name of the supplier F.Y. 1. Advik Textiles and Realpro Pvt. Ltd. Gala no.6, Kamath Industrial Estate, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai 2. Bilpower Textiles and Conpro Pvt. Ltd. 1st Floor, Raghuvanshi Compound, Lower, Parel Mumbai 3. Comrade Lease Finvest Pvt. Ltd. Gala no.6, Kamath Industrial Estate, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai 4. Encare Textiles and Properties Pvt. Ltd. -do- 5. Gamin Traders Pvt. Ltd. -do- 6. Hotline Textiles and Infra Pvt. Ltd. -do- 7. Instant Traders Pvt. Ltd. -do- 8. Jade Traders Pvt. Ltd. -do- 9. Loren Leasing and Infotech Pvt. Ltd. -do- 10. Oak Leasing and Infotech P. Ltd. -do- 11. Rosette Leasing and Infotech P. Ltd. -do- 12. Upright Lea....
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....ceedings for reassessment for AY 2009-10." 6. Thereafter, notice issued under section 143(2) and 142(1) of the Act were issued and served to the assessee. In response to same, authorised representative of the assessee attended the reassessment proceedings and furnished the requisite details called for. During the course of hearing, learned DR submitted that neither before the AO nor before the learned CIT(A), the assessee challenging invocation of reassessment proceedings and this issue has been raised for the first time in appeals before us. We find that though, this fresh issue should have been raised by way of an application seeking admission of additional ground, however, the assessee has raised the same in its appeals. It is settled that being a legal issue, same can be raised at any stage of proceedings, if the basic facts are available on record. Therefore, we proceed to deal with same. From the reasons recorded, it is evident that pursuant to survey under section 133A of the Act in case of Tayal Group cases it was found that assessee has shown unaccounted purchases and claimed depreciation on plant and machinery, which were found to be bogus. Accordingly, on the basis of....
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....r reopening the assessment in the case of assessee it is also evident that the assessee has not disclosed truly and fully all material facts. As a result, we find no infirmity in the reassessment proceedings initiated by the AO under section 147 of the Act. Thus, the grounds raised by the assessee pertaining to this issue are dismissed. (b) Notice under section 143(2) was not served within the prescribed period 8. During the course of hearing, learned DR submitted that neither before the AO nor before the learned CIT(A), the assessee raised this issue and it has been raised for the first time in appeals before us. We find that though, this fresh issue should have been raised by way of an application seeking admission of additional ground, however, the assessee has raised the same in its appeals. It is settled that being a legal issue, same can be raised at any stage of proceedings, if the basic facts are available on record. Therefore, we proceed to deal with same. As per section 143(2) of the Act, notice under this section is required to be served on the assessee before the expiry of 6 months from the end of the financial year in which the return under section 139 or in resp....
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....se premises belong to Tayal Group of companies. On further investigation, it was found that Shri Kulvinder Kumar Nayyar was an employee of Tayal group of company. His statement was recorded on 08/05/2014, wherein he confirmed that he was employed with the assessee company. He also admitted that 12 companies are floated by Shri Sanjay Kumar Tayal and are managed and controlled by him. He also admitted that he was a dummy director and the companies were managed by Shri Sanjay Kumar Tayal. The AO vide order 30/03/2016 passed under section 147 r/w section 143 (3) of the Act treated the purchase of Rs. 117 crore to be out of books and the corresponding sales are also treated to be made out of books. Since, the assessee has shown gross profit @7.04%, therefore, addition of Rs. 8,23,68,000 was made to the total income of the assessee. 10. The learned CIT(A) vide, the impugned order dated 15/12/2017, dismissed the appeal filed by the assessee on this issue and further enhance the addition to the Rs. 9.36 crore by adopting GP rate of assessee at 8%. Being aggrieved, the assessee is in appeal before us. 11. Having considered the submissions of learned DR and perused the material availa....
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....ely after the survey action claimed that its books of accounts had perished in a fire that occurred shortly after the survey on 29.9.2013 The lack of genuineness of transactions of 12 entities including M/s.Advik Textiles and M/s.RealproPvt. Ltd. has been noted earlier and has been highlighted in the assessment order. It is noted that the appellant group companies were using bogus bills from various entities operated by Mahaveer Duggar and Dilip Mehta CA to siphon out money. Wherever and whatever bills of Tayal Group were found either in survey u/s 133A on 10.9.2013, search action u/s 132 on 23.12.2008 or from banks such as UCO bank to whom appellant had submitted the bills (refer records of M/s Actif Corporation Ltd.), the bills have been found to be bogus. It is no wonder that the appellant is seeking refuge under the claim of fire to not produce the basic evidence. The valuers, YardiPrabhu Consultants &Valuers P. Ltd. and Business and Industrial Consultants. whose report is relied upon strongly by the appellant have been examined on oath in the appellate proceedings. They have clearly indicated that their reports do not vouch for the machineries as being found as installed in th....
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....uers further submitted that there was no basis to ascertain the model and the year of manufacture and the year of installation of the machines. Further, the valuers submitted that ownership of the machines cannot be verified in absence of invoices and fixed assets register. In absence of details as sought by the lower authorities, the bills produced by the assessee were found to be bogus. Thus, in view of the above findings, we find no infirmity in the impugned order passed by the learned CIT(A) on this issue. As a result, addition made by the AO on this issue is upheld. Thus, the ground raised by the assessee pertaining to this issue is dismissed. (e) Disallowance of payment of interest expenses 15. Since, borrowed funds have been siphoned off the interest claimed by the assessee was disallowed by the AO. The learned CIT(A) also dismissed the appeal filed by the assessee on this issue, by observing as under: "7.4. I have considered the submissions. As a corollary to the decision in respect of ground of appeal no 2, since borrowed funds have been siphoned off, the interest claimed on the same cannot be considered as used for business. The disallowance is warranted. T....