2026 (1) TMI 743

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....3, Gurgaon (hereinafter referred as Ld. First Appellate Authority or in short Ld. 'FAA') in appeals No.10288, 10289, 10291, 10303, 10306/2018-19, 10309 and nil arising out of the appeals before it against the orders passed u/s 153A r.w.s. 143(3)/271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the DCIT, Central Circle, Karnal (hereinafter referred to as the Ld. AO) for AYs 2015-16, 2016-17 & 2015-16, respectively. 2. On hearing both the sides, we find that the two appeals 2132 and 2133 have common issues involved and, in fact, the impugned order of the ld.CIT(A) was a consolidated order for AYs 2011-12 to 2015-16 and the appeal for AY 2016-17 was decided separately. Then there is an appeal against levy of pena....

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....ssessee company is one of the concerns of the said group which was covered u/s 132 of the Act. The cases were centralized by an order u/s 157 of the Act. On perusal of ledger accounts of M/s Fibretech Enterprises, M/s Malik International, M/s Supreme International & M/s Zenith Enterprises in the books of account of assessee company for the F.Y. 2009-10 & 2010-11 which were obtained from its books of accounts. It was noted by the ld. AO that machinery worth Rs. 10,52,64,000/- has been shown as purchased from the above mentioned four concerns. During the course of post-search proceedings, the assessee company was specifically asked to furnish the information like copies of all purchase bills along with date of purchase, amount, description of....

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....ects were put up to the assessee wherein detailed reply was filed and the AO observed that merely payments made through banking channel is not sufficient and there were circumstances to show that it was a bogus purchase. Thus expenses and depreciation were disallowed. The AO primarily relied the letter pad of the four companies found in the computer of the assessee at the time of search and survey and hard disc of the computer to conclude that these concerns were floated by the assessee only to make bogus entries and claim deduction on account of depreciation. 6. Now, what is material is that this seized material have been considered by the coordinate Bench in the decision dated 28.08.2025 (supra) and the coordinate Bench has held that t....

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....and the post search inquiries specifically indicated them to be non-existent entities, the only inference could be drawn is that these are accommodation entry providers of various fixed assets whose depreciation as well as cost of acquisition and interest etc. has been rightly disallowed, forming subject matter of our adjudication on merits. 4. We have given our thoughtful consideration to the assessee's and the Revenue's foregoing vehement rival submissions. There is hardly any dispute between the parties that hon'ble apex court's recently landmark decision in Abhisar Buildwell (2023) 149 taxmann.com 399 (SC) has already settled the law that any addition in furtherance to a search action involving an "unabated" assessment is to be....