Silver & Arts Palace Vs ACIT (ITAT Jaipur)
ITAT Jaipur held that addition towards unaccounted commission based on seized digital sheet without corroborative evidence is not sustainable. Accordingly, addition is deleted and said ground raised by assessee is allowed.
Facts- The assessee is a partnership firm engaged in the business of precious and semi-precious stones, Jewellery, textile and handicraft items etc. A search action u/s. 132 of the Act was carried out on 19.01.2021 on the assessee group and its associated concerns. Assessee was also searched under section 132 of the Act. Accordingly, notice u/s. 153A of the Act was issued and in response to this notice, assessee filed return u/s. 153A on 13.01.2022 declaring total income of Rs. 29,30,41,583/-.
During the search operation at the premises of the assessee, digital data was found which was claimed to contain details of unaccounted commission paid, in cash, by the assessee. It was stated by the AO, in his assessment order, that the digital sheets contain details of commission paid by the assessee in cash to various tour and travel companies which has not been accounted for in the books, hence addition for the same was made by the AO. The addition made for the current year is Rs. 2,26,690. Further, the AO also made addition of Rs. 25,64,000/- on the basis of sheet recovered from digital data which was claimed to contain details of commission made to various persons which was, in view of the Ld. AO, also not routed through books of the assessee. During assessment proceedings, the assessee furnished the submissions before the AO. However, AO was not satisfied with the reply of the assessee and accordingly made the addition of Rs. 27,93,690/- (2,29,690/- + 25, 64,000/-).
