Wipro Industries Limited Vs ACIT (ITAT Mumbai)
The appeal arose from the order dated 08.08.2025 passed by the Commissioner of Income Tax (Appeals), Mumbai, for Assessment Year 2017-18. The assessee challenged, among other issues, the validity of the assessment, additions made on account of estimated commission income, addition under Section 69A relating to cash deposits during the demonetisation period, application of Section 115BBE, taxation of business income at 40%, and disallowance of brought forward losses.
The assessee, engaged in trading IT products, filed its return declaring nil income. During assessment, the Assessing Officer noted that a search conducted in 2013 in the case of Shri Shirish C. Shah revealed alleged accommodation entry activities. Observing that the assessee was one of the group companies, the Assessing Officer concluded that the turnover from sale of IT products represented circular and non-genuine transactions. The turnover was treated as bogus, and commission income at 1% of the turnover amounting to Rs. 90,87,895 was added. The Assessing Officer also treated cash deposits of Rs. 34,66,250 made during the demonetisation period as unexplained money under Section 69A after rejecting the assessee’s explanation that the deposits were made from earlier cash withdrawals. The claim for set-off of brought forward losses was also disallowed.
