Case Law Details
Zoom Developers SEZ [Indore] Pvt. Ltd Vs A.C.I.T (ITAT Delhi)
ITAT Delhi held that the additions/disallowance, devoid of any incriminating material found during the course of search, cannot validate the assessment orders framed u/s 153C of the Act. Accordingly, assessment orders u/s 153C cannot be sustained and liable to be quashed.
Facts- A search and seizure operation u/s. 132 of the Act was conducted on 23.07.2015 and on subsequent dates at the residential as well as office premises of Shri Deepak Aggarwal, Shri Mukesh Kumar and Others group of cases based at Delhi. Allegation was that this group was found to be a group of entry operators providing accommodation entries to beneficiaries. Various incriminating papers/documents were found and seized during the course of search and seizure operation in the group case and statements were recorded during the course of search and seizure operation and on subsequent dates, confirmed the belief of the department that the group was involved in providing accommodation entries.
During the course of search and seizure operations, incriminating papers/documents were found related to the captioned assessees and on the basis of such impounded material, satisfaction note was drawn on 23.03.2018 in the case of searched person and the other person [captioned assessee] u/s. 153C of the Act.
AO initiated proceedings u/s 153C of the Act and completed proceedings by making addition on account of commission on accommodation entries on account of bogus purchases and bogus sales being 3% of the accommodation entries provided and further made disallowance on account of assumed expenditure which the assessee must have incurred in running its business of providing accommodation entries.
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