TaxTMI 
TaxTMI 
2023 (4) TMI 387
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....einafter referred to as Revenue) and the cross objection filed by the cross objector M/s. Sanman Trade Impex Ltd. (hereinafter referred to as the assessee) bearing common question of law and facts are being disposed of by way of composite order in order to avoid repetition of discussion. 2. The Revenue and the assessee by filing the present appeal and cross objections respectively sought to set aside the impugned order dated 25.01.2019 passed by the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] on the grounds inter-alia that: Grounds of appeal of Revenue (ITA No.2113/M/2019) "1. Whether on the facts and in the circumstances of the case and in law, the Id. CIT(A) erred in deleting the addit....
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....ntry were directly/indirectly routed to the assessee company without providing any opportunity of being heard or for verifying the submissions made by the assessee in the course of appellate proceedings, which is arbitrary and against the interests of the principles of natural justice.? 5. Whether on the facts and in the circumstances of the case and in law, the Id. Commissioner of Income Tax (Appeals) erred in sustaining the protective addition of only 5% of GP margin on alleged unaccounted sales in the case of the assessee company "Hazel Mercantile Ltd" while on the other hand according relief of - entire addition of Rs. 2,46,95,532/- which is arbitrary and against the interests of the principles of natural justice.? 6. ....
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....has erred in confirming the action of Learned Assessing in treating the exempt LTCG are allegedly non genuine and adding the same u/s.68 of the Act without appreciating the facts and circumstances of the case and position of law. 4. On the facts and circumstances of the case as well as in Law, the Learned CIT(A) has erred in confirming the action of Learned Assessing in considering the facts and circumstances of the case by not providing an opportunity for cross examinations of third parties whose statements were relied upon. 5. The respondent craves leave to add, amend, alter or delete the said ground of appeal." 2. Briefly stated facts necessary for consideration and adjudication of the issues at hand are : the assess....
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....TCG proceeded to hold that the assessee has invested in shares of an unknown non descript company by way of preferential allotment and the financials of such company did not justify the investment made by the assessee and the assessee failed to provide the reasonable justification for making such investment. The AO also observed that the assessee has utilized unaccounted cash to obtain the aforesaid bogus LTCG as admitted by various accommodation entry providers. For providing accommodation entry in the nature of bogus LTCG they have charged a commission of 5% and thereby rejected the claim of exemption under section 10(38) of the Act made by the assessee by making addition of Rs.2,46,95,535/-. The AO also made addition of Rs.12,34,777/- be....
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.....1 to 4.3 of this order, Grounds of Appeal No.1 & 6 are, therefore, dismissed. 16.1. Grounds of appeal no.2, 3 & 4 are on the merits of the addition made by disallowing the claim of exemption for long term capital gains of Rs.2,46,95,532/- and further addition of Rs. 12,34,777/- at the rate of 5% of the exempt long term capital gains earned during the year as unaccounted commission expenses incurred for earning the said exempt income. Grounds No.7 & 8 have also been raised that opportunity of cross examination of third parties whose statements were relied upon were not provided and that the statement recorded u/s.132(4) was retracted and the AO further erred in only partially relying on the statement recorded u/s.132(4) and ignorin....
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..... 1899/Mum/2019 (A.Y. 2010-11), ITA No. 1900/Mum/2019 (A.Y. 2011-12), ITA No. 1901/Mum/2019 (A.Y. 2012-13), ITA No. 1902/Mum/2019 (A.Y. 2013-14), ITA No. 1903/Mum/2019 (A.Y. 2014-15) & ITA No. 1904/Mum/2019 (A.Y. 2015-16) and case has been remitted back to the Ld. CIT(A) to decide afresh by passing a speaking order, present appeal and cross objections are also required to be set aside to the Ld. CIT(A) to decide afresh along with case of Hazel Mercantile Ltd. 7. We have perused the order passed by the co-ordinate Bench of the Tribunal in case of Hazel Mercantile Ltd. (supra) which has been set aside to the Ld. CIT(A) reasoned out of same search and belonging to Shri Nitinkumar Dindayal Didwania, Director of Hazel Mercantile Ltd. and asse....