2024 (8) TMI 966

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.... matter of separate assessments framed by Ld. AO u/s 143(3) r.w.s. 153A r.w.s. 153C of the Act on 29-12-2019 for AY 2015-16 and on 27-12-2019 for AY 2015-16. It is admitted position that facts as well as issues are quite identical in both the appeals and adjudication in any one appeal shall apply to the other year also. For the purpose of adjudication, facts from case records of AY 2015-16 have been culled out in this order. The grounds raised by the assessee read as under:- 1. For that the Order of the Ld. CIT (A) and Ld. AO are bad in l aw and circumstances and is opposed to the principles of natural justice, equity, and fair play. 2. For that the Order of the Ld. AO failed to bring on records any material evidences to p....

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....ceedings. 2. The Registry has noted delay of 18 days in the appeals, the condonation of which has been sought by the Ld. AR on the strength of affidavit of the assessee. Considering the period of delay, the delay is condoned and the appeals are admitted for adjudication on merits. 3. The Ld. AR advanced arguments and drew our attention to various documents placed on record. The Ld. AR submitted that the impugned amounts do not represent the income of the assessee but it was paid to shareholders. The Ld. CIT-DR controverted the arguments of Ld. AR and submitted that no plausible evidences could be furnished by the assessee to support the same. Having heard rival submissions and upon perusal of case records, our adjudication would be as....

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.....3 Since the information in the seized material related to the assessee and it had a bearing on the determination of the total Income of the assessee, a notice u/s. 153A r.w.s. 153C was issued by Ld. AO to the assessee on 10-07-2019. However, the assessee did not file any return of income. Subsequently, a show-cause notice was issued on 25-11- 2019 explaining the details of information in the possession of the Department and asking the assessee to file the return of Income. The assessee admitted same income as offered in the original return of income which was found not acceptable by Ld. AO. 4.4 The assessee denied having received impugned sum of Rs. 25 Lacs in individual capacity but submitted that the amount of Rs. 125 Lacs was receive....

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.....25 Crores from M/s, Sree Gokulam Chit and Finance Company Pvt. Ltd. through cheque and it got credited in my personal account on 26.04.2014 & 03.05.2016. It is reflected in my bank account statement (A/c number - Dhanlaxmi Bank- 000200900003972). This amount was received by me as an advance to give to share holders of M/s. South India Wires and Ropes Pvt. Ltd. Out of Rs. 2.25 Crores received, approximately Rs. 1.44 Crores was paid to three of the share holders namely Viraj Impex Pvt. Ltd., Full Tech Investment Ltd. and Solver Wires Pvt. Ltd. towards the purchase of shares of M/s. South India Wires and Ropes Pvt. Ltd. Further, Rs. 55 lakhs was used to pay the bank to get the property document pledged in the bank by me. Balance of Rs. 26 lak....

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.... was stated to be utilized towards payment to 2500 shareholders but the assessee did not produce any vouchers in support of such payment of cash to shareholders. In the absence of supporting evidences, the aforesaid amount was treated as unaccounted business income in the hands of the assessee and an addition of Rs. 25 Lacs was made for AY 2015-16 and another similar addition of Rs. 100 Lacs was made for AY 2016-17. Appellate Proceedings 5. The Ld. CIT(A) considered the statement made by Shri M. Suresh Babu that the assessee demanded 50% of payment as commission and paid an amount of Rs. 125 Lacs in cash which was not reflected in the books of accounts. The assessee admitted the receipt of the payment but stated that the amount was re....