Sarthak Ispat Pvt. Ltd Vs ACIT (ITAT Raipur)
ITAT Raipur held that addition of commission @1% on bogus sales transacted upheld as no plausible explanation provided by the assessee. Accordingly, appeal dismissed and order of CIT(A) upheld.
Facts- The assessee is a Pvt. Ltd. company engaged in the business of Iron and Steel. A Search & Seizure Action u/s 132 was conducted on the business and residential premises of Sarthak Group of cases along with the assessee in present case on 26.11.2019. Consequently, assessment proceedings u/s 153A are initiated by issuance of notice on 25.01.2021. In response, assessee furnished necessary replies, submissions to the queries raised by AO. After deliberations the assessment was culminated by AO by assessing the income of the assessee with certain additions.
The assessee preferred an appeal before CIT(A) but was unsuccessful in absence of representation before the First Appellate Authority, wherein the appeal of assessee is dismissed after due deliberations at length on the findings by AO based on material available before CIT(A), considering the merits of the issues. Being aggrieved, the present appeal is filed.
Conclusion- Held that there was no infirmity in the order of Ld. CIT(A) in confirming the addition made by the Ld. AO in absence of any plausible explanation by the assessee to dislodge the same. Further, we observe that the assessee’s involvement in providing of Bogus Sales bills in lieu of commission was never disputed by the assessee, therefore, receipt of commission by the assessee on such bogus transactions cannot be doubted, therefore, the finding of Ld. AO that the assessee has received a commission from such transactions found to be of material substance. We, thus, in terms of such observations do not find any perversity in the decision of Ld. CIT(A), so we uphold the same.
