Mainee Steel Works Pvt. Ltd. Vs DCIT (ITAT Delhi)
ITAT Delhi held that the approval granted u/s. 153D in the nature of a ‘technical approval’ in symbolic exercise of powers under s. 153D. Hence, the consequential assessment orders based on such repugnant approval under s. 153D is bad in law in tune with earlier years.
Facts- The assessee company, namely Mainee Steel Works Pvt. Ltd., is stated to be involved in the business of many activities including renting of construction scaffolding equipment etc. The assessee also derives rental income from factories/Godowns located in Noida, UP.
The assessee was covered in a search and seizure operation u/s. 132 of the Act that was conducted on 19.11.2018 at the various premises of Mainee Group of cases. Consequent upon search, notices u/s. 153A of the Act were issued to the assessee for various AYs under appeal. While framing search assessments noted above, the AO inter alia made additions u/s. 68 of the Act alleging certain credits received from various parties to be in the nature of accommodation entries and holding that the nature and source of the credits have not been explained to the satisfaction of the AO. The additions u/s. 68 for various assessment years were premised on the allegation that the assessee has failed to discharge onus towards genuineness and creditworthiness of the parties/lenders. The additions have also been made in certain years towards commission paid on alleged accommodation entries and additions towards bogus purchases etc.
