TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 392
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....case are stated in brief. The assessee is engaged in the business of developing Free trade warehousing - Special economic zone, meant for supply chain management, warehousing end to end freight forwarding, rail transportation and is also engaged in software development. The Revenue carried out survey operation under section 133A of the I.T. Act o 20.01.2014. Subsequently search action was carried out under section 132(1) of the Act on 13.6.2014. Subsequent to the search operation the impugned assessments were completed by the Assessing Officer under section 153A read with section 143(3) of the Act. 3. In A.Y. 2010-11, the Assessing Officer had made addition relating to the alleged commission expenses paid to two concerns u/s 69C of the Act....
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....iled the appeal challenging the additions confirmed by the learned CIT(A). 5. It is the submission of the assessee that both the years under consideration fall under the category of "unabated/completed" assessment years. It is the case of the assessee that all the additions made by the AO in both the years are not based on any incriminating materials found during the course of search and hence all the additions made in both the years are liable to be deleted. 6. We noticed earlier that the Ld CIT(A) has deleted the additions in AY 2010-11 on the basis of legal contention referred above. However in AY 2012-13, the assessee did not raise this legal contention before Ld CIT(A) and hence the Ld CIT(A) has adjudicated the issues on merits. Bef....
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....ement from three parties and it was confirmed by them that they were accommodation entries. Out of the three persons, only one has retracted the statement. Since the assessee had capitalised those accommodation bills, the AO has estimated the commission expenses incurred in procuring those bills at Rs. 16,16,099/- and Rs. 32,36,656/- and added the same in AY 2010-11. Similarly, commission expenses of Rs. 6,18,524/- was estimated and assessed in AY 2012-13. The Ld A.R submitted that the survey proceedings should be considered as part of search proceedings and accordingly contended that the statement taken during the course of survey operations should be considered as the incriminating material. Accordingly, the Ld A.R contended that the addi....
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....disallowance has been made in the assessments completed under section 153A of the Act. The undisputed fact is that the search officials did not unearth any incriminating material to support the above said additions. The alleged commission expenses assessed by the Assessing Officer in both the years are wholly on estimate made on the basis of presumptions. Learned AR further submitted that the survey operation in the instant case cannot be considered to be the part of search operations since there is a time gap of six months between the two operations. Learned AR contended that the Assessing Officer has made the assessment under section 153A of the Act and further both the years under consideration are unabated assessments and hence the Asse....
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....On the other hand, in the instant case, the survey operation was conducted in the hands of the assessee in January, 2014 and the search operation was also conducted in the hands of the assessee only in the month of June 2014. During the course of search operation, no incriminating material relating to the two years under consideration was found. The material used by the AO were admittedly certain statements taken during the course of survey operations and subsequent thereto, but prior to search operations. 11. Accordingly, it has to be held that the additions made by the Assessing Officer in both the years under consideration are not based upon any incriminating material found during the course of search operations. Since both the years un....