TaxTMI 
TaxTMI 
2021 (9) TMI 1471
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.... The learned CIT (A) erred in law and on facts in holding that the assessment framed u/s 153A is valid ignoring that the assessment was a completed assessment and not abated besides that no incriminating material was found during the course of search. Thus no addition can be made u/s 153A of the Act and thus the additions so made should be deleted. 2. The learned CIT (A) erred in law and on facts in confirming the disallowance of expenses of Rs. 4,51,032/- incurred for running the business of the assessee and duly recorded in the books of account a) ignoring the details of expenses placed on record and without pointing out any discrepancy in them b) ignoring that no incriminating material was found to show that the said expenses were ....
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.... earned commission at the rate of 1% on such sales. The total sales for this year was 15,07,98,240/-.Consequently, the assessment order was passed u/s 153A on 28.12.2017. The assessee aggrieved with that order preferred appeal before the ld CIT(A). Appeal of assessee was allowed by scaling down the commission income to 0.5 % instead of 1 %. Jurisdiction u/s 153A was confirmed. Therefore assessee is in appeal. 5. Assessee preferred an appeal before the learned CIT - A. Before him assessee submitted that it has originally filed its return of income on 29.09.2013, search took place on 23.07.2015 and therefore, as on the date of search the assessment for Assessment Year 2013-14 was concluded assessment. Therefore, any addition that could have ....
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....ng the course of search. The ld CIT(A) has also merely relied upon the statement of director and other person recorded during the course of search. Further, merely statement could not have been used in absence of any incriminating material found during the course of search corroborating such statement. Further, merely because the books of account was not available during the course of search such non availability of books of account also cannot be used against the assessee to make an addition in a concluded assessment. In view this, we find the issue is squarely covered by the decision of the Hon'ble Delhi High Court in CIT Vs. Kabul Chawla 380 ITR 573. Even during the course of hearing also ld DR could not show us any incriminating mat....
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....nning the business of the assessee. 14. The fact shows that assessee filed it‟s return of income on 13.10.2015. The assessment u/s 153A pursuant to search dated 23.07.2015 was completed on 28.12.2017 wherein, total income of the assessee was computed @ 1% total sales of Rs. 1,87,17,200/- applying rate of earning ratio @1%. Consequently, total income was assessed at Rs. 1,87,180/-. 15. The assessee challenged it before the ld CIT(A) who in fact reduced the net profit to 0.5% instead of 1% determined by the assessee. Before the ld CIT(A) the assessee submitted that even if it is considered that assessee is acting as a conduit and providing accommodation entry, that is the business of the assessee. Therefore, those expenses incurred by....
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....VAT returns are also shown to the ld AO. It was stated that the assessee has been alleged as a conduit company. 18. The ld DR vehemently objected the same and submitted that the learned assessing officer has rejected the books of accounts of the assessee as it was found to be bogus and merely used for providing accommodation entry of the bogus sales bills to various parties. The learned assessing officer has determined the net profit of the assessee at the rate of 1% of the bogus sales. The learned CIT - A has reduced it to 0.5%. Therefore all the expenditure are subsumed in the above adjustment by the lower authorities. He therefore submitted that even if there are certain expenditure accounted for in the profit and loss account of the as....