ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(2), HYDERABAD vs. ASTER BUILDING SOLUTION PRIVATE LIMITED , HYDERABAD

O R D E R PER S.S.GODARA, J.M. :

These four Revenue’s appeals, two appeals each & 469/Hyd/2020 in case of the former assessee, M/s.Aster Private Limited and ITA Nos.470 & 471/Hyd/2020 involving latter appeals of M/s.Aster Building Solutions Private Limited arise against the CIT(A)-11, Hyderabad’s separate orders; all dated 03-01-2020 passed in case Nos.321, 354, 319 & 313 / CIT(A)-11 / Hyd / 2018-19, 2019-20 involving proceedings u/s.143(3) r.w.s.153A of the Income Tax Act, 1961 [in short, ‘the Act’]; respectively. Heard both the parties. Case files perused.

:- 2 -: 469, 470 & 471/Hyd/2020

The Ld.CIT(A) erred both in law and on facts of the case in allowing relief to the assessee. 2.The Ld.CIT(A) failed to appreciate the fact that in the assessment order the Assessing officer has clearly mentioned that the search and post-search enquiries has revealed accommodation purchases by the assessee basing on which the addition was made. 3.The Ld.CIT(A) ought to have appreciated the fact that a detailed show cause notice was issued to the assessee company wherein all the facts relating to the bogus/accommodation entries of purchase bills/unexplained & unverified expenses with various vendors have been pointed out to the assessee. 4.The Ld.CIT(A) erred in allowing the appeal without appreciating the fact that a detailed show cause notice was issued covering the issues of search involving claim of non-genuine/bogus purchases/unexplained & un verified expenses, as applicable to various vendors as noticed during the search and survey proceedings conducted in this group cases. 5.The Ld.CIT(A) erred in not following the principle laid down by the Jurisdictional High Court of Andhra Pradesh in the case of Gopal La Bhadruka vs DCIT 346 ITR 106, wherein it has held that for the purpose of section 153A/153C of the I.T. Act the AO can take into consideration material other than what was available during search and seizure operation for making an assessment." 6.The Ld.CIT(A) is not justified on facts and in law in deleting the addition ignoring the decision in the case of EN Gopa Kumar Vs CIT(2016) wherein it has held that the presence of incriminating material is not a requirement and the assessee u/s153A can be made without there being any incriminating material. 7.The appellant craves leave to amend or alter any ground or add any other grounds which may be necessary”.