TaxTMI 
TaxTMI 
2026 (3) TMI 1555
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....Act, 1961, [hereinafter referred to as 'the Act'] arising out of assessment orders dated 28.03.2016 of Ld. Assessing Officer/ Income Tax Officer, Ward-2(3), Ghaziabad [hereinafter referred as 'the AO'] u/s 143(3)/147 of the Act Asst. Years 2008-09 and 2009-10. 2. Both appeals involved similar facts, grounds of appeal and issues. Therefore, they were heard together. 3. Brief facts of the case ITA No.311/Del/2018 are that the case was reopened u/s 147 on ground that a search and seizure action u/s 132 of the Act was carried out in the case of M/s Uflex Group of Companies on 19.02.2014. During the course of search operation, substantial cash was found deposited in bank accounts of M/s Uflex Ltd. Ltd. which was explained as cash sale proc....
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.... of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making disallowance of Rs. 1,12,27,857/- on account of cash purchases from M/s Uflex Ltd. u/s 40A(3) and that too by recording incorrect facts and findings and without observing the principles of natural justice. 4. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making disallowance of Rs. 1, 12,27,857/- on account of cash purchases from M/s Uflex Ltd. u/s 40A(3) is bad in law and against the facts and circumstances of the case. 5. That the appellant craves the leave to add, modify, amend or delete a....
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.... the following judgments: a. Rajat Shubra Chatterji vs. ACIT in ITA 2430/Del/2015. b. ACIT vs. Arun Kapur 140 TTJ 249 (Amritsar) c. Cargo Clearing Agency vs. JCIT 307 ITR 1 (Guj.) d. Sushil Gaur in ITA 1500/Del/2017, Date of order 08.08.2017, Delhi ITAT. e. PCIT vs. RMG Polyvinyl (I) Ltd. in ITA No.29/2017, Date of Order 07.07.2017, Delhi High Court. f. PCIT vs. Meenakashi Overseas (P) Ltd. in ITA 692/2016, Date of order 26.05.2017, Delhi High Court. g. Genuine Electricals & Electronics (P) Ltd. vs. ITO in ITA 3623/Del/2014, Date of order 22.04.2016 Delhi ITAT. h. Sonia Chowdhry vs ITO in ITA 2036-2037/Del/2010, Date of order 07.10.2016, Delhi ITAT. i. Pr. CIT ....
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.... b. Chaudhary & Sons Forging Pvt. Ltd. vs. ITO, ITA No. 1008/2015, ITAT Del. c. GERMAN REMEDIES LTD. vs. DCIT [287 ITR 494 (Bom)] d. Central India Electric Supply Co. Ltd. vs. ITO: (2011) 333 ITR 237 (Del.) (Refer PB 226-234) 6.3 Disallowance made by the Ld. AO u/s 40A(3) on account of cash purchase made by assessee from M/s Uflex Ltd. which were subsequently confirmed by Ld. CIT(A). Reliance is placed on the following judgments: a. Anupam Tele Services vs. Income-tax Officer [2014] 43 taxmann.com 199 (High Court of Gujrat) b. Nirmal Kumar Das, Midnapore vs Assessee (ITAT-Kolkata), ITA No.391/Kol/2014. c. Manoranjan Raha Nadia vs Assessee (ITAT-Kolkata), I.T.A No.1448/Kol/2011 ....
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.... or draft exceeding Rs. 20,000/- and which was not to be allowed under section 40A(3) of the Income Tax Act, 1961, I have reasons to believe that the income of the assessee chargeable to tax at Rs. 22,45,571/- (20% of Rs. 1,12,27,857/-) has escaped for Assessment Year 2008-09, within the meaning of section 147 the Income Tax Act, 1961, being failure to disclosed the correct income on the part of the assessee." 8.1 From perusal of the above reasons, it is evident that the reassessment is based on alleged material recovery during the search u/s 132 in the case of U-flex Ltd. 8.2 A Co-ordinate Bench in Rajat Shubra Chatterji vs. ACIT in ITA 2430/Del/2015 held as under: "In the present case before us, it is an admitted fact, as also evide....