2023 (9) TMI 370

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....essment year 2009-10. 2. In its appeal, the assessee has raised the following grounds:- "1. That the assessment order passed u/s 153C of the Act is not tenable under the law because neither any search u/s 132 was conducted nor any requisition under Section 132A of the Act was made in the case of the appellant for the year under consideration. 2. The disallowance made by Ld. AO is bad in law as no incriminating material concerning such additions were ever found and further no assessments for this year was pending. 3. That the Ld. AO has grossly erred in law and on facts while disallowing purchases worth of Rs. 6,87,64,162/-. 4. That the appellant assails his right to amend, alter, change any grounds of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s, the assessee was asked to explain the source of funds brought in as fresh capital by the assessee and its further deployment. On the basis of the reply filed by the assessee, it was noticed that the assessee has allowed its bank account to Shri Shirish C Shah who brought the funds in the guise of preferential allotment and subsequently deployed them as share capital/loan, etc., which was actually bogus accommodation entries to various persons. The Assessing Officer ("AO") vide order dated 28/03/2016 passed under section 143(3) read with section 153C of the Act came to the conclusion that the assessee in collaboration with Shri Shirish C Shah brought the share capital through preferential allotment and invested the amount with ultimate be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the parties. Being aggrieved, the assessee is in appeal before us. 7. We have considered the submissions of both sides and perused the material available on record. It is the plea of the assessee that the Revenue has not invoked the provisions of section 145 of the Act and assessee's books of accounts are not rejected. Further, the assessee has placed reliance upon the purchase invoices and stock registers along with a copy of Ledger accounts, wherein the details of payments made for purchases are shown. As per the assessee, it has sold the entire material purchased from the stated parties and sale proceeds thereof are credited to the books of accounts of the assessee company. 8. It is evident from the record that the assessee is one ....