Shirish Chandrakant Shah Vs ACIT (ITAT Mumbai)
Search Case – Commission Income Reduced, 69C Deleted & Cash Addition Shifted to Correct Year
Pursuant to search u/s 132, AO treated assessee as accommodation entry provider and made multiple additions including commission @1.75%, cash in locker ₹1.18 Cr, ₹28L cash & 69C expenditure. CIT(A) confirmed additions.
ITAT held:
- 153D approval valid – no evidence of mechanical approval
- Commission income – partly sustained but reduced
- Activity of accommodation entries upheld
- However, internal/circular transactions to be excluded
- Rate reduced from 1.75% to 0.47% → matter remanded for recomputation
- Telescoping issue – remanded for verification
- Sec 69C addition – deleted
Payments through disclosed bank accounts → source explained
- Cash ₹1.18 Cr (locker)
-
- Belongs to FY 2014-15 → cannot be taxed in wrong year
- Deleted in AY 2016-17 & directed to examine in AY 2015-16
- Cash ₹28L (search)
Explanation that it belonged to father (released earlier by SEBI) accepted
Addition deleted u/s 69A
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. These appeals filed by the assessee are directed against the orders passed by the Ld. Commissioner of Income Tax (Appeals)-48, Mumbai under section 250 of the Income-tax Act, 1961 for assessment years 2015-16 to 2018-19. The assessments for A.Ys. 2015-16 to 201718 were framed under section 143(3) read with section 153A pursuant to search conducted under section 132 on 29.07.2017, whereas the assessment for A.Y. 2018-19 was framed under section 143(3). Since common issues arise in these appeals, they were heard together and are disposed of by this consolidated order. For the sake of convenience, A.Y. 2016-17 is taken as the lead year.
