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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
आदेश / O R D E R Per Amarjit Singh (AM): This appeal filed by the assessee is directed against the order passed by the ld. CIT(A)-52, Mumbai dated 14.06.2023 for A.Y. 2017- 18. The revenue has raised the following grounds before us: “1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in making additions/disallowances in the assessment completed u/s. 153A of the Act without any incriminating documents being found during the course of search.
2. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in making a disallowance of expenses of Rs.4,49,540/- u/s.37(1) of the Income Tax Act, 1961 by treating the payments made to M/s. Manoj Enterprises as alleged bogus expenses, without considering the facts & circumstances of the case.
P a g e | M/s Triton Hotels and Resorts Pvt. Ltd. Vs. ACIT, CC-4(3)
3. On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as Learned Assessing Officer has erred in making an addition based on statement of Jiten Pujari without appreciating the fact that he himself has denied during cross examination before Assessing Officer about authenticity of data in seized diary.
4. The appellant craves leave to add, amend, alter or delete the said ground of appeal.”
2. Fact in brief is that search and seizure action u/s 132 of the Act was carried out in the case of the assessee group on 13.07.2020. Thereafter the assessing officer issued notice u/s 153A of the Act on 21.10.2021. In response the assessee filed return of income on 5.11.2021 declaring total income at Rs. Nil. During the course of assessment the assessing officer referred the seized material found and seized from the residence of Shri Jiten Pujari ( keyemployee) of the Triton Group proprietary concern of the assessee from where signed blank cheque book in the name of certain persons were found and seized. The detail of such document has been elaborated by the assessing officer at page 29-37 of the assessment order. On the perusal of the seized documents and statement u/s 132 of Shri Jiten Pujari the assessing officer found that Noble India Construction Company NICC has booked bogus expenses and made payment to various parties during the year under consideration. The detail of such payments is as under:
Name of the PAN Amount Person/Entity Manoj Enterprises AHTPP6023G 4,49,540 Total 4,49,540 The assessee was asked to show cause to explain why not the said expenses booked by the assessse should not be treated as non-genuine. The assessee explained that M/s Manoj Enterprises used to execute the P a g e | M/s Triton Hotels and Resorts Pvt. Ltd. Vs. ACIT, CC-4(3) labour piece rate work at the hotel and referred the supporting document i.e. ledger account, work order, copy of invoices, bank statement etc. However, the AO has not agreed with the submission of the assessee and observed after perusal of the invoices issued by M/s Manoj Enterprise that the same were unsigned and even it did not contain the essential particulars likeaddress and other detail of M/s Manoj Enterprises. The AO also found that M/s Manoj Enterprises had issued invoices for the work which had already been completed. In view of the various discrepancies above as discussed above, the AO held that assessee has booked bogus non-genuine expenses of Rs.449,540/- and same was disallowed u/s 37(c) of theAct.
The assessee filed the appeal of the assessee before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee.
Heard the ld. D.R and perused the material on record. During the course of appellate proceedings before us neither anybody has attended from the side of the assessee nor furnished any written submission, therefore, the case is adjudicated on the basis of material available on the record. In the assessment order the assessing officer has elaborately discussed the signed blank cheque books in the name of certain persons found and sized from the residence of Shri Jiten Pujari (employee of NICC Noble India Construction Company) proprietary concern of Shri Shiv Shankar Sharma. In the statement recorded u/s 132 of the Act Shri Jiten Pujari stated that such signed blank cheque book were used for withdrawal of cash from NICC, wherein the first bogus payments were made to these persons by NICC and subsequently, cash was withdrawn from the bank account of these person. In the similar modus operandi as discussed above in this order bogus expenses of Rs.449,540/-was booked pertaining to invoices issued by Manoj Enterprises. The assesse has failed to explain various discrepancies noticed on the invoices issued by M/s Manoj Enterprises, In view of the P a g e | M/s Triton Hotels and Resorts Pvt. Ltd. Vs. ACIT, CC-4(3) fact and finding we don’t find any reason to interfere in the decision of ld. CIT(A) in sustaining the addition of Rs.449,540/- u/s 37(1) of the Act. Therefore, all the ground of appeal
of the assesse are dismissed.
5. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 26.10.2023