2024 (12) TMI 1756

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....43(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") dated 22.12.2017 by the Assessing Officer, ITO, Ward-14(4), Delhi (hereinafter referred to as "ld. AO"). 2. The revenue has raised the following grounds before us:- "1. Ld. CIT(A) was correct in deleting the addition of Rs. 3,38,77,822/- made by the AO while passing the order u/s 147/143(3) of the Income Tax Act 1961 ob 22.12.2017 by applying 0.5% of the total turnover of Rs. 677,55,64,560/- 2. That the earlier order of the Ld. CIT(A) in AY 2013-14 and 2014-15 wherein the same addition were made by AO at 0.5% of total turnover after rejecting the books of account of the assessee. 3. That the appellant craves leave to add, alter, amend or f....

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....ed that they were carrying on the business of giving cheque entries and take cash from the parties to whom cheques were issued and also give the parties RTGS /transfer /high-value pay orders as required by them. They provided the details of entities operated by them. One such entity was M/s Krithvi Enterprises Limited which was handled by Shri Praveen Kumar Jain and Shri Anil Kumar Jain. The bank statement of M/s Krithvi Enterprises Limited was called for and analyzed. The Learned AO observed that from the said analysis, it transpired that Krithvi Enterprises Limited had purchase and sales transactions with assessee herein. The Learned AO doubted that the transactions of purchases and sales made by the assessee with Krithvi Enterprises Limi....

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....gly, there is absolutely no basis for the Learned AO to reject the books of accounts of the assessee by applying the provisions of section 145(3) of the Act and estimate the profits thereon. Further, the Learned AO before us submitted that Krithvi Enterprises Limited and assessee are in the same line of business. There are certain loan transactions between assessee and Krithvi Enterprises Limited which are reflected in the ledger account. The loans taken by the assessee from Krithvi Enterprises Limited are utilized for business purposes and most of the loans are also squared up during the year under consideration itself. Further, the Learned AO had not mentioned from the statements of Mr. Anil Kumar Jain and Mr. Pravin Kumar Jain, that they....