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09-07-2019, AGGARWAL ASSOCIATES, Section 153A, 145(3), Tribunal Delhi

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3 months 3 days ago #10014 by amit
Section - 153A, 145(3), 44AB, 132
Order Date - 09-07-2019
Favouring - Assessee Partly
Court - Tribunal Delhi
Respondent - DCIT
Justice - H.S. SIDHU JM & B.R.R. KUMAR AM
Citation - 719Taxpundit108
Appeal No. - ITA NO. 787/DEL/2016
Asstt. Year - 2009-10



Assessee has filed this appeal against the impugned order dated 22.12.2015 passed by Ld. CIT(A), Ghaziabad on the following grounds:-

1. On the facts and circumstances of the case and in law, the CIT(A) has erred in confirming the addition of Rs. 3714973/- made by the AO on account of alleged unexplained purchases.

2. On the facts and circumstances of the case and in law, the addition of Rs. 3714973/- made by the AO is beyond the scope / jurisdiction of provisions of section 153A of the Income Tax Act, 1961 and the CIT(A) has erred in not holding so. That the appellant craves leave to add one or more ground of appeal or to alter / modify the existing ground before or at the time of hearing of appeal

2. The brief facts of the case are that a search & seizure operation u/s132 of the Income Tax Act, 1961 was conducted on 19.10.2011 on the premises of the assessees comprising Agarwal Associates & Jainco Group of cases. In view of search operation, the group cases were centralized to Central Circle, Ghaziabad. The premises covered u/s 132 of the Income Tax Act, 1961 (in short “Act”) operation were Bharat Bhawan, 10, New Rajdhani Enclave, Vikas Marg, Preet Vihar, Delhi, GF - 16, Kasturba Gandhi Marg, Cannaught Place, New Delhi (Opposite British Council). The jurisdiction order uls 127 of the Income tax Act, 1961, in this case was passed by the Ld. Commissioner of Income Tax, Delhi - I, New Delhi communicated vide F. No. CIT - I1Centralization/20 13- 14/2816 dated 16.09.2013. Subsequently, notice u/s 153A was issued on 30.09.2013.

The assessee filed return of income on 13.12.2013 declaring total income of Rs. 3,65,12,490/-. Notice. under section 143(2) was issued on 13.12.2013. Notice U/s J42(1) alongwith questionnaire was already issued on 03.12.2013. IN response to the same, the AR of the assessee attended the proceedings and filed the necessary supporting documents. The assessee is engaged in business of real estate development and related activities specifically development and sales of flats. The assesseefurnished various details including statement of bank accounts and also furnished replies to the questionnaires issued that were looked into and verified. Purchases from Meet Enterprises During the year, the assessee has purchased steel from M/s Meet Enterprises for Rs. 37,14,973/- and show cause was issued on 13.03.2014 to explain the genuineness of transaction with Meet Enterprises and to explain as under:-

"Before the search, bank account standing in the name of M/s Meet Enterprises, 621111, Mimlana Road, Muzaffamagar in Punjab National Bank, Ghaziabad was enquired The name of Prop. of the firm in account opening form is Shr .Sunil Kumar, Mimlana Road, Muzaffarnagar. A perusal of the account opening form obtained from the PNB, Ghaziabad revealed that proprietor of Mis Meet Enterprises is Shri Sunil Kumar S/o Shri Lala Ram, R/o 621/11, Mimlana Road, Muzaffarnagar with business address at Meerut Road, Surju Chungi, Muzcffarnagar. From local enquiries it was revealed that he is of no means and his statement was also recorded wherein he stated that he is a driver and that earlier he used to be a driver of one Pushkar Tyagi, Rio Shalimar Garden, Sahibabad
in district of Ghaziabad and who had his business address at Nand Gram, Ghaziabad. It was stated by him that on being asked by Pushkar Tyagi, he opened an account in the name of Meet Enterprises and signed blank cheque book at the behest of Tyagi. Apart from this he has no knowledge of Meet Enterprises/its transactions all what transactions were made through the bank. The trade tax registration No. given at the time of opening of bank account at PNB, Ghaziabad was also got verified fromTrade Tax Department, Muzaffarnagar and it was found that the registration number, mentioned in the registration certificate submitted to the bank at the time of opening account, is related to Mis Kumar Traders, Meerut Road, Near Suzru Chungl, Muzoffamagar. Dy. Commissioner Varijyakar, Khand - 4, Muzzafarnagar has also mentioned that M/s Meet Enterprises is non-existent firm as per their records. Further enquiries of these cheques revealed that such amounts were cleared to the Current Account No. 095010200013086 of Mis Meet Enterprises maintained in the Axis Bank Limited, Plot No.3, Ambedkar Road, Nehru Nagar, Ghaziabad. Copy of said bank account was obtained from the Axix Bank Limited, Ghaziabad. A perusal of this account shows that the said account is also in the name of Mis Meet Enterprises with address at B - '262, Nand Gram. GDA Colony, Ghaziabad. Enquiries from Trade Tax Department revealed that the Prop. Of firm M/s Meet Enterprises, Ramdham Colony, Shivalik Nagar, Hardwar, Tin No. 05006640257 is Shri Vikas Kumar S/O Vijay Pal Singh Rio 464/A, Keshavpuri, Muzaffarnagar. Mr. Vikas Kumar was examined and he stated that he used to run the business of Meet Enterprises and that he only had one transaction in which he sold goods to National Trading Company, Roorkee and that he had no other business

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