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Facts
A search action by NCB led to seizure of documents. The Income-tax Department requisitioned these documents, initiating proceedings under Section 153A. The Assessing Officer made additions for unexplained cash receipts and expenditures. The CIT(A) partly upheld and partly deleted these additions. The assessee also raised cross-objections regarding the validity of the proceedings.
Held
The Tribunal held that the cash vouchers found during the search needed to be explained. The CIT(A)'s deletion of additions without reasoning was not sustained. The matter was restored to the Assessing Officer for fresh adjudication. The appeals of the Revenue were allowed for statistical purposes, and the cross-objections of the assessee were dismissed.
Key Issues
Whether the additions made by the AO for unexplained cash receipts and expenditures are justified, and whether the CIT(A) correctly applied the 'Peak Credit Theory'. The validity of proceedings under Section 153A was also challenged.
Sections Cited
68, 69C, 153A, 132A(1), 143(3)
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Income Tax Appellate Tribunal, MUMBAI BENCH “A” MUMBAI
Before: SHRI OM PRAKASH KANT & MS. KAVITHA RAJAGOPAL
The captioned The captioned appeals by the Revenue and cross appeals by the Revenue and cross-objections filed by the assessee are directed against a common order dated filed by the assessee are directed against a common order dated filed by the assessee are directed against a common order dated 29.03.2024 passed by the Ld. Commissioner of Income-tax 29.03.2024 passed by the Ld. Commissioner of Income 29.03.2024 passed by the Ld. Commissioner of Income (Appeals) – 48, Mumbai [in short ‘the Ld. CIT(A)’] for assessment 48, Mumbai [in short ‘the Ld. CIT(A)’] for assessment 48, Mumbai [in short ‘the Ld. CIT(A)’] for assessment years 2020-21 and 2021 21 and 2021-22. As common grounds have been raised As common grounds have been raised in these appeals and therefore, same were heard together and in these appeals and therefore, same were heard together and in these appeals and therefore, same were heard together and disposed off by way of this consolidated order for the sake of disposed off by way of this consolidated order for the sake of disposed off by way of this consolidated order for the sake of convenience.
2. Firstly, we take up the appeal of the Revenue and cross Firstly, we take up the appeal of the Revenue and cross Firstly, we take up the appeal of the Revenue and cross- objection of the assess objection of the assessee for assessment year 2020-21. The grounds 21. The grounds raised by the Revenue in its appeal are reproduced as under: raised by the Revenue in its appeal are reproduced as under: raised by the Revenue in its appeal are reproduced as under: i. "Whether on the facts and circumstances of the case the Ld. i. "Whether on the facts and circumstances of the case the Ld. i. "Whether on the facts and circumstances of the case the Ld. CIT(A) has erred in directing the AO to delete the addition made CIT(A) has erred in directing the AO to delete the addition made CIT(A) has erred in directing the AO to delete the addition made u/s. 68 and restricting u/s. 68 and restricting the unexplained expenditure u/s. 69C the unexplained expenditure u/s. 69C without taking into consideration the fact that the assessee had without taking into consideration the fact that the assessee had without taking into consideration the fact that the assessee had failed to provide any cogent explanation/material with respect failed to provide any cogent explanation/material with respect failed to provide any cogent explanation/material with respect to the same during the assessment proceedings". to the same during the assessment proceedings". ii. Whether on the facts and circumstance ii. Whether on the facts and circumstances of the case the Ld. s of the case the Ld. CIT(A) has erred in applying the Peak Credit Theory without CIT(A) has erred in applying the Peak Credit Theory without CIT(A) has erred in applying the Peak Credit Theory without considering the fact that the assessee had failed to provide an considering the fact that the assessee had failed to provide an considering the fact that the assessee had failed to provide an explanation as to how the expenditure incurred was for the explanation as to how the expenditure incurred was for the explanation as to how the expenditure incurred was for the purpose of its business and hence was directly link purpose of its business and hence was directly link purpose of its business and hence was directly linked to its income". 2.1 The grounds raised by the assessee in its cross The grounds raised by the assessee in its cross The grounds raised by the assessee in its cross-objection are reproduced as under: reproduced as under:
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 3 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024
The notice u/s. I53A of the Act dated 28.06.2021 is without 1. The notice u/s. I53A of the Act dated 28.06.2021 is without 1. The notice u/s. I53A of the Act dated 28.06.2021 is without jurisdiction, non jurisdiction, non-cst. invalid and bad in law.
The order u/s. 143(3) r.w.s 153 A 2. The order u/s. 143(3) r.w.s 153 A of the Act dated of the Act dated 51.03.2022 is non 51.03.2022 is non-est. invalid and bad in law.
The Ld. CIT(A) erred in law & facts in not appreciating [hat 3. The Ld. CIT(A) erred in law & facts in not appreciating [hat 3. The Ld. CIT(A) erred in law & facts in not appreciating [hat addition in respect of the documents (bund at the premise of addition in respect of the documents (bund at the premise of addition in respect of the documents (bund at the premise of Shri. Vinod Kumar Sharma was warranted in the case of the Shri. Vinod Kumar Sharma was warranted in the case of the Shri. Vinod Kumar Sharma was warranted in the case of the appellant. 4. All the above grounds are he above grounds are independent and without independent and without prejudice to each other. prejudice to each other. 3. At the outset, we may like to mention that despite notifying At the outset, we may like to mention that despite notifying At the outset, we may like to mention that despite notifying none attended on behalf of the assessee nor any adjournment none attended on behalf of the assessee nor any adjournment none attended on behalf of the assessee nor any adjournment application was filed and therefore, we application was filed and therefore, we were of the opinion that of the opinion that assessee was not interested in prosecuting the appeal and not interested in prosecuting the appeal and hence, not interested in prosecuting the appeal and same were heard ex ex-parte qua the assessee after hearing the parte qua the assessee after hearing the arguments of the Ld. Departmental Representative (DR). arguments of the Ld. Departmental Representative (DR). arguments of the Ld. Departmental Representative (DR).
Briefly stated, facts of the case are that in view Briefly stated, facts of the case are that in view Briefly stated, facts of the case are that in view of the search action carried out by the Narcotics Control Bureau (NCB) and action carried out by the Narcotics Control Bureau (NCB) and action carried out by the Narcotics Control Bureau (NCB) and seizure different drugs seizure different drugs tablets from import consignment of the tablets from import consignment of the company, a search was also carried out at the residence of the earch was also carried out at the residence of the earch was also carried out at the residence of the Director of the company and certain loose documents along with Director of the company and certain loose documents alo Director of the company and certain loose documents alo foreign currency was found and seized. foreign currency was found and seized. The document seized by the The document seized by the NCB was requisitioned by the Income NCB was requisitioned by the Income-tax Department u/s 132A(1) tax Department u/s 132A(1) of the Income-tax Act, 1961 ( in short the Act) and consequently tax Act, 1961 ( in short the Act) and consequently tax Act, 1961 ( in short the Act) and consequently proceeding u/s 153A of the Act was initiated and proceeding u/s 153A of the Act was initiated and carri carried out in the case of the assessee. Thereafter, the assessee file return of income . Thereafter, the assessee file return of income . Thereafter, the assessee file return of income for the assessment year under consideration declaring total income for the assessment year under consideration declaring total income for the assessment year under consideration declaring total income
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 4 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 at Rs.1,19,64,700/-. I . In the assessment completed, t completed, the Assessing Officer made addition in respect of unexpl Officer made addition in respect of unexplained cash receipt u/s 68 ained cash receipt u/s 68 of the Act amounting to Rs.1,31,15,474/ of the Act amounting to Rs.1,31,15,474/- and unexplained and unexplained expenditure u/s 69C of the Act amounting to Rs.98,45,506/-. In expenditure u/s 69C of the Act amounting to Rs.98,45,506/ expenditure u/s 69C of the Act amounting to Rs.98,45,506/ this manner, total addition amounting to Rs.2,29,60,980/- was this manner, total addition amounting to Rs.2,29,60,980/ this manner, total addition amounting to Rs.2,29,60,980/ made. The assessment in the case of the assessee was completed made. The assessment in the case of the assessee made. The assessment in the case of the assessee u/s 153A r.w.s. 143(3) of the Act on 31.03.2020. u/s 153A r.w.s. 143(3) of the Act on 31.03.2020.
4.1 On further appeal, the Ld. CIT(A) upheld the addition of the On further appeal, the Ld. CIT(A) upheld the addition of the On further appeal, the Ld. CIT(A) upheld the addition of the cash receipt from para 6.1 to 6.6 of the impugned order. The cash receipt from para 6.1 to 6.6 of the impugned order. The cash receipt from para 6.1 to 6.6 of the impugned order. The relevant part of the order is reproduced as under: relevant part of the order is reproduced as under:
6.1 Decision o 6.1 Decision on Ground No. 1 and 2: From perusal of facts, n Ground No. 1 and 2: From perusal of facts, assessment order and submissions of the appellant, it is assessment order and submissions of the appellant, it is assessment order and submissions of the appellant, it is observed that the issue involved in the year under consideration observed that the issue involved in the year under consideration observed that the issue involved in the year under consideration is:- (i) Cash receipt vouchers found during the search by NCB at ) Cash receipt vouchers found during the search by NCB at ) Cash receipt vouchers found during the search by NCB at residence residence of of Shri Shri Vinod Vinod Kumar Kumar Sharma Sharma representing representing unexplained receipts pertaining to F.Y. 2019 unexplained receipts pertaining to F.Y. 2019-20 relevant to A.Y. 20 relevant to A.Y. 2020-21 'aggregating to Rs. 1,31,15,474. 21 'aggregating to Rs. 1,31,15,474. (ii) Cash payment vouchers found during the search by NCB at (ii) Cash payment vouchers found during the search by NCB at (ii) Cash payment vouchers found during the search by NCB at residence residence residence of of of Shri. Shri. Shri. Vinod Vinod Vinod Kumar Kumar Kumar Sharma Sharma Sharma representing representing representing unexplained expenditure pertaining to year: expenditure pertaining to year:- Assessment Year Amount Assessment Year Α.Υ. 2020-21 21 98,45,506/- With regards to the issue related to unexplained receipts, a With regards to the issue related to unexplained receipts, a With regards to the issue related to unexplained receipts, a perusal from the material placed on record, it is observed that perusal from the material placed on record, it is observed that perusal from the material placed on record, it is observed that as per AO, out of the total seized loose papers as per AO, out of the total seized loose papers as per AO, out of the total seized loose papers by NCB, following documents documents in respect of receipt vouchers, represent respect of receipt vouchers, represent unexplained receipts of the unexplained receipts of the appellant:-
Assessment Year Assessment Year Document ref no. Aggregate Amount Aggregate Amount
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 5 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024
(inRs.) (inRs.) A.Y. 2020-21 D-47, D-57, D-55, D- 1,31,15,474/ 1,31,15,474/- 58,D12, D-45, D-48, D-49, D-50, D-66, D-61, D-46 D- 60 Total 1,31,15,474/ 1,31,15,474/- 6.3 The AO, during the course of assessment, .had called for 3 The AO, during the course of assessment, .had called for 3 The AO, during the course of assessment, .had called for the cash book, bank book and financial statements of the the cash book, bank book and financial statements of the the cash book, bank book and financial statements of the appellant, invoices raised to the different parties by the appellant, invoices raised to the different parties by the appellant, invoices raised to the different parties by the assessee related to assessee related to impounded documents D-l to D l to D-97. In response to the same, the appellant had submitted the cash response to the same, the appellant had submitted the cash response to the same, the appellant had submitted the cash book of itself as well as that of M/s, Westfin International Pvt book of itself as well as that of M/s, Westfin International Pvt book of itself as well as that of M/s, Westfin International Pvt- Ltd. and claimed that the bills / invoices related to cash receipts Ltd. and claimed that the bills / invoices related to cash receipts Ltd. and claimed that the bills / invoices related to cash receipts vouchers were raised by M/s vouchers were raised by M/s. Westfin International Pvt. Ltd. . Westfin International Pvt. Ltd. (sister concern of assessee) to its clients and said cash vouchers (sister concern of assessee) to its clients and said cash vouchers (sister concern of assessee) to its clients and said cash vouchers were^ related to receipts of amounts which were already were^ related to receipts of amounts which were already were^ related to receipts of amounts which were already credited in the banks of M/s. Westfin International Pvt. Ltd. The credited in the banks of M/s. Westfin International Pvt. Ltd. The credited in the banks of M/s. Westfin International Pvt. Ltd. The assessee also claimed that the ca assessee also claimed that the cash vouchers of receipts were sh vouchers of receipts were raised to compute the commission to be given to agents in cash. raised to compute the commission to be given to agents in cash. raised to compute the commission to be given to agents in cash. 6.4 However, the AO, in the assessment order for A.Y. 2020 6.4 However, the AO, in the assessment order for A.Y. 2020 6.4 However, the AO, in the assessment order for A.Y. 2020- 21 has contended that the receipts recorded in above referred 21 has contended that the receipts recorded in above referred 21 has contended that the receipts recorded in above referred cash vouchers has remained unex cash vouchers has remained unexplained due to following due to following reasons:- (i)The names mentioned in the cash vouchers of receipts were (i)The names mentioned in the cash vouchers of receipts were (i)The names mentioned in the cash vouchers of receipts were different from the names mentioned in the final invoices. different from the names mentioned in the final invoices. different from the names mentioned in the final invoices. (ii)The actual amount of invoices were raised in the names of (ii)The actual amount of invoices were raised in the names of (ii)The actual amount of invoices were raised in the names of foreign parties, and the amounts have been recei foreign parties, and the amounts have been received through ved through banking channel, which gives no reason to the assessee to raise banking channel, which gives no reason to the assessee to raise banking channel, which gives no reason to the assessee to raise cash vouchers. cash vouchers. iii)No supporting documents have been submitted regarding the iii)No supporting documents have been submitted regarding the iii)No supporting documents have been submitted regarding the computation of commission of agents / invoices raised by the computation of commission of agents / invoices raised by the computation of commission of agents / invoices raised by the agents. (iv)Even after giving multiple opp after giving multiple opportunities to the assessee, the ortunities to the assessee, the assessee has reiterated its same submission. assessee has reiterated its same submission. 6.5 As against this, the appellant during the course of appellate As against this, the appellant during the course of appellate As against this, the appellant during the course of appellate proceedings has filed its submissions. From the submissions, it proceedings has filed its submissions. From the submissions, it proceedings has filed its submissions. From the submissions, it has been observed that the appellant has resubmit has been observed that the appellant has resubmitted various ted various documents and explanations in respect of the cash receipt documents and explanations in respect of the cash receipt documents and explanations in respect of the cash receipt vouchers concerned which were provided by it before the vouchers concerned which were provided by it before the vouchers concerned which were provided by it before the investigation investigation investigation wing wing wing as as as well well well as as as during during during the the the assessment assessment assessment
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 6 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 proceedings. The appellant in its submission dated 03.01.2024 proceedings. The appellant in its submission dated 03.01.2024 proceedings. The appellant in its submission dated 03.01.2024 for A.Y. 2020 for A.Y. 2020-21 has claimed that some of the cash receipt has claimed that some of the cash receipt vouchers were prepared merely for internal record purpose to vouchers were prepared merely for internal record purpose to vouchers were prepared merely for internal record purpose to note the foreign remittances towards export sales received in note the foreign remittances towards export sales received in note the foreign remittances towards export sales received in Westfin International Pvt. Ltd. which is the sister concerns of Westfin International Pvt. Ltd. which is the sister concerns of Westfin International Pvt. Ltd. which is the sister concerns of the appellant company and the appellant company and deals with the export related deals with the export related business of the appellant. business of the appellant. In support of the same, it has In support of the same, it has enclosed several export invoices, shipping bills, inward enclosed several export invoices, shipping bills, inward enclosed several export invoices, shipping bills, inward remittance certificates, packing lists, airway bills etc. However, remittance certificates, packing lists, airway bills etc. However, remittance certificates, packing lists, airway bills etc. However, on perusal of said documents, it is seen tha on perusal of said documents, it is seen that the names, dates t the names, dates and amounts mentioned by the appellant is different than those and amounts mentioned by the appellant is different than those and amounts mentioned by the appellant is different than those mentioned on the supporting evidences. Further, the explanation mentioned on the supporting evidences. Further, the explanation mentioned on the supporting evidences. Further, the explanation given by the appellant that the cash vouchers were merely given by the appellant that the cash vouchers were merely given by the appellant that the cash vouchers were merely prepared for internal record purpose cannot be accep prepared for internal record purpose cannot be accepted as the ted as the same contains the name of the appellant on each of the same contains the name of the appellant on each of the same contains the name of the appellant on each of the document. Further, with respect to one document, the appellant document. Further, with respect to one document, the appellant document. Further, with respect to one document, the appellant has merely claimed that the same was wrongly prepared. has merely claimed that the same was wrongly prepared. has merely claimed that the same was wrongly prepared. However, However, However, in in in absence absence absence of of of any any any documentary documentary documentary evidence/ evidence/ evidence/ corroborative material, corroborative material, the same cannot bé considered a the same cannot bé considered a genuine explanation. genuine explanation. 6.6 In view of above, I find no infirmity in the observations of In view of above, I find no infirmity in the observations of In view of above, I find no infirmity in the observations of AO with regards to the cash receipt vouchers referred to in para AO with regards to the cash receipt vouchers referred to in para AO with regards to the cash receipt vouchers referred to in para 6.2 above and therefore the AO has rightly held that the same 6.2 above and therefore the AO has rightly held that the same 6.2 above and therefore the AO has rightly held that the same represents unexplained business receipts of the appellant unexplained business receipts of the appellant unexplained business receipts of the appellant for A.Y. 2020 2020-21. 4.1 Thereafter, in respect of vouchers of the expenditure, the Ld. Thereafter, in respect of vouchers of the expenditure, the Ld. Thereafter, in respect of vouchers of the expenditure, the Ld. CIT(A) found the expenditure to the extent of Rs.25,94,699/- as CIT(A) found the expenditure to the extent of Rs.25,94,699/ CIT(A) found the expenditure to the extent of Rs.25,94,699/ explained and addition addition addition for for for the the the balance balance balance expenditure expenditure expenditure of of of Rs.1,40,92,307/- was sustained subject to peak credit. The relevant was sustained subject to peak credit. The relevant was sustained subject to peak credit. The relevant paragraphs of the impugned order are reproduced as under: paragraphs of the impugned order are reproduced as under: paragraphs of the impugned order are reproduced as under:
6.7 Further, with respect to the issue relating to 6.7 Further, with respect to the issue relating to 6.7 Further, with respect to the issue relating to unexplained expenditure, a perusal unexplained expenditure, a perusal from the material from the material placed on record, it is observed that as per AO, out of the placed on record, it is observed that as per AO, out of the placed on record, it is observed that as per AO, out of the total seized loose papers by NCB, following documents in total seized loose papers by NCB, following documents in total seized loose papers by NCB, following documents in respect of represent unexplained expenditure of the respect of represent unexplained expenditure of the respect of represent unexplained expenditure of the appellant:-
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 7 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 Assessment Document ref no. Aggregate Amount Aggregate Amount Year In Rs.)
•A.Y. 2020-21 D-13,D-16,D-17,D-18, 98,45,5067- 0-19, D-20, 0-25, D-29, 0-32, D-33, D-34, D-35, D-37, D-40, D-41, D-42, D-43, D-44, D-14, D-24, D-26, D-27, 0-28, D-30, D-67, D-68, D-21, D-74 andD-75 Total 98,45,5067- 4 6.8 However, the AO, based on the explanations and However, the AO, based on the explanations and However, the AO, based on the explanations and submissions made in the assessment order for the year submissions made in the assessment order for the year submissions made in the assessment order for the year under consideration has contended that the payments under consideration has contended that the payments under consideration has contended that the payments recorded in above referred cash vouchers has retnained recorded in above referred cash vouchers has retnained recorded in above referred cash vouchers has retnained unexplained due to following reasons: unexplained due to following reasons:- (i)Upon analysis, it was seen that most of the payments as nalysis, it was seen that most of the payments as nalysis, it was seen that most of the payments as per the cash vouchers were related to commission per the cash vouchers were related to commission per the cash vouchers were related to commission payouts, for which no cogent evidences have been payouts, for which no cogent evidences have been payouts, for which no cogent evidences have been produced and no IDS was deducted by the assessee. produced and no IDS was deducted by the assessee. produced and no IDS was deducted by the assessee. (ii)The source of cash for cash payment were also not (ii)The source of cash for cash payment were also not (ii)The source of cash for cash payment were also not explained by the assessee ained by the assessee- (iii)There were also payments against which purchase (iii)There were also payments against which purchase (iii)There were also payments against which purchase invoice were submitted, however, no explanation was invoice were submitted, however, no explanation was invoice were submitted, however, no explanation was submitted as to why cash vouchers were raised. submitted as to why cash vouchers were raised. (iv) In one instance, amount mentioned in voucher No. D (iv) In one instance, amount mentioned in voucher No. D (iv) In one instance, amount mentioned in voucher No. D-68 [dt.20.12.2019, Rs.3 [dt.20.12.2019, Rs.32,00,000], assessee submitted the 2,00,000], assessee submitted the bank books of Westfin& Aveo, which showed that the bank books of Westfin& Aveo, which showed that the bank books of Westfin& Aveo, which showed that the payment of Rs.20,00,000/ payment of Rs.20,00,000/-[dt.19.12.2019] was made by [dt.19.12.2019] was made by Westfin through bank and Rs.12,00,000/ Westfin through bank and Rs.12,00,000/- [dt.20.12.2019] [dt.20.12.2019] was made by Aveo again through bank. was made by Aveo again through bank. However, the However, the dates in ban dates in bank book entries did not match with the cash k book entries did not match with the cash vouchers raised and it was also not properly explained by vouchers raised and it was also not properly explained by vouchers raised and it was also not properly explained by Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 8 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 the assessee as to why cash vouchers had been raised for assessee as to why cash vouchers had been raised for assessee as to why cash vouchers had been raised for these transactions. these transactions. (v)Dates in bank book entries did not match with cash (v)Dates in bank book entries did not match with cash (v)Dates in bank book entries did not match with cash vouchers raised. vouchers raised. (vi)From the voucher details, it is clear that the assessee m the voucher details, it is clear that the assessee m the voucher details, it is clear that the assessee had done most of payments in cash, be it purchase of had done most of payments in cash, be it purchase of had done most of payments in cash, be it purchase of material or payment of commission and the assessee was material or payment of commission and the assessee was material or payment of commission and the assessee was not able to satisfactorily explain the discrepancies. not able to satisfactorily explain the discrepancies. not able to satisfactorily explain the discrepancies. 6.9 The submissions made by the appellant The submissions made by the appellant during the during the course of these appellate proceedings in each of these course of these appellate proceedings in each of these course of these appellate proceedings in each of these years have been considered. years have been considered. From the submissions and From the submissions and explanations of the appellant, it is seen that in respect of explanations of the appellant, it is seen that in respect of explanations of the appellant, it is seen that in respect of vouchers contained in documents D vouchers contained in documents D-40, D-41, D-42, D 42, D-37, D-44, D-43, D 43, D-34, D-35, D-67, D-32, D-33, D-29, D 29, D-25, D- 21, D-20, D- -19, D-18, D-16, D-17 and D-13, the assessee 13, the assessee has submitted cash book evidencing the fact that they has submitted cash book evidencing the fact that they has submitted cash book evidencing the fact that they have already been recorded in the cash books of the have already been recorded in the cash books of the have already been recorded in the cash books of the appellant. Further, in respect of these vouchers, the nam appellant. Further, in respect of these vouchers, the nam appellant. Further, in respect of these vouchers, the name, date of payment, amount of payment as entered into cash date of payment, amount of payment as entered into cash date of payment, amount of payment as entered into cash book. also matches with the date, name, amount and book. also matches with the date, name, amount and book. also matches with the date, name, amount and description on cash vouchers generated by the appellant. description on cash vouchers generated by the appellant. description on cash vouchers generated by the appellant. Further, with respect to the source of said expenditure Further, with respect to the source of said expenditure Further, with respect to the source of said expenditure incurred by the appellant, the ap incurred by the appellant, the appellant has submitted pellant has submitted that the source of said expenditure was cash receipts in that the source of said expenditure was cash receipts in that the source of said expenditure was cash receipts in the ordinary course of appellant's business and which the ordinary course of appellant's business and which the ordinary course of appellant's business and which were already recorded in cash book of the appellant and were already recorded in cash book of the appellant and were already recorded in cash book of the appellant and also offered to tax. On detailed perusal of the cash book of also offered to tax. On detailed perusal of the cash book of also offered to tax. On detailed perusal of the cash book of the appellant and details pellant and details of sales of the appellant, the of the appellant, the contention of the appellant is found to be correct. Further, contention of the appellant is found to be correct. Further, contention of the appellant is found to be correct. Further, with respect to the cash voucher D with respect to the cash voucher D-67, the description of 67, the description of said voucher states that the payment of Rs.5,00,000/ said voucher states that the payment of Rs.5,00,000/ said voucher states that the payment of Rs.5,00,000/-was made to one M/s. Vanilla Food made to one M/s. Vanilla Food Products Pvt. Ltd. The Products Pvt. Ltd. The assessee has explained that the said payment was made assessee has explained that the said payment was made assessee has explained that the said payment was made by M/s. Westfin International Pvt. Ltd through banking by M/s. Westfin International Pvt. Ltd through banking by M/s. Westfin International Pvt. Ltd through banking channels and had also submitted extract of bank channels and had also submitted extract of bank channels and had also submitted extract of bank statement of M/s. Westfin in this regard. Further, with statement of M/s. Westfin in this regard. Further, with statement of M/s. Westfin in this regard. Further, with respect to D respect to D-21, the appellant has explained that Rs. e appellant has explained that Rs. 1,82,000/- was paid in cash by the appellant, Rs. was paid in cash by the appellant, Rs. 1,18,000/- was paid by M/s. Westfin International Pvt. was paid by M/s. Westfin International Pvt. was paid by M/s. Westfin International Pvt. Ltd. and Rs. 5,00,000/ Ltd. and Rs. 5,00,000/- represents exchange value of old represents exchange value of old
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 9 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 machinery. In this regard, the appellant has submitted the machinery. In this regard, the appellant has submitted the machinery. In this regard, the appellant has submitted the copy of cash book of appellant and bank statement of copy of cash book of appellant and bank statement of copy of cash book of appellant and bank statement of M/s. Westfin to establish the above facts. M/s. Westfin to establish the above facts. 6.10 Further, with respect to the other vouchers, I concur 6.10 Further, with respect to the other vouchers, I concur 6.10 Further, with respect to the other vouchers, I concur with the observations made by the A.O. as discussed in with the observations made by the A.O. as discussed in with the observations made by the A.O. as discussed in para 6.8 above. With respect to these vouchers para 6.8 above. With respect to these vouchers para 6.8 above. With respect to these vouchers, the appellant has failed to satisfactorily explain the source of appellant has failed to satisfactorily explain the source of appellant has failed to satisfactorily explain the source of the expenditure and the documents submitted by the the expenditure and the documents submitted by the the expenditure and the documents submitted by the appellant does not corroborate with the cash vouchers in appellant does not corroborate with the cash vouchers in appellant does not corroborate with the cash vouchers in terms of date of transactions, party to whom payment is terms of date of transactions, party to whom payment is terms of date of transactions, party to whom payment is made, amounts recorded in made, amounts recorded in vouchers and those recorded vouchers and those recorded in cash book or bank book of either appellant or M/s. in cash book or bank book of either appellant or M/s. in cash book or bank book of either appellant or M/s. Westfin International Pvt. Ltd. Westfin International Pvt. Ltd. 6.11 Accordingly, in view of above, out of total expenditure 6.11 Accordingly, in view of above, out of total expenditure 6.11 Accordingly, in view of above, out of total expenditure of Rs.1,66,87,006/ of Rs.1,66,87,006/-, [Rs. 9,00,000/- for AY 2019 for AY 2019-20, Rs. 98,45,506/- for AY 2020-21 and Rs. 59,41,500/ 21 and Rs. 59,41,500/- for AY 2021-221, I hold that the expenditure contained in cash 221, I hold that the expenditure contained in cash 221, I hold that the expenditure contained in cash vouchers to the extent of Rs.25,94,699/ vouchers to the extent of Rs.25,94,699/- stands explained stands explained and in respect of balance expenditure of Rs.1,40,92,307/ and in respect of balance expenditure of Rs.1,40,92,307/ and in respect of balance expenditure of Rs.1,40,92,307/-, the same represents unexplained expenditure of appel the same represents unexplained expenditure of appel the same represents unexplained expenditure of appellant over the period from F.Y. 2018 over the period from F.Y. 2018-19 to F.Y. 2020-21 relevant 21 relevant to A.Y. 2019- to A.Y. 2019-20 to A.Y. 2021-22.” 4.2 Thereafter, the Ld. CIT(A) proceeded to apply the peak credit Thereafter, the Ld. CIT(A) proceeded to apply the peak credit Thereafter, the Ld. CIT(A) proceeded to apply the peak credit theory and restricted the addition to the extent of Rs.9 lakhs in theory and restricted the addition to the extent of Rs.9 lakhs in theory and restricted the addition to the extent of Rs.9 lakhs in assessment year 2019 2019-20 and Rs.76,833/- in assessment year in assessment year 2021-22. The relevant finding of the Ld. CIT(A) is reproduced as 22. The relevant finding of the Ld. CIT(A) is reproduced as 22. The relevant finding of the Ld. CIT(A) is reproduced as under:
“6.12 However, in the submissions of the appellant made “6.12 However, in the submissions of the appellant made “6.12 However, in the submissions of the appellant made during the course of the appellate proceedings, the during the course of the appellate proceedings, the during the course of the appellate proceedings, the appellant has raised an argument relatin appellant has raised an argument relating to application of g to application of 'Peak Credit Theory' to the 'Peak Credit Theory' to the current case. 6.13 As per this theory, the unexplained credits and debits 6.13 As per this theory, the unexplained credits and debits 6.13 As per this theory, the unexplained credits and debits of the assessee has to be arranged in serial order in the of the assessee has to be arranged in serial order in the of the assessee has to be arranged in serial order in the manner that a credit following a debit entry should be manner that a credit following a debit entry should be manner that a credit following a debit entry should be Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 10 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 treated as referable treated as referable to the latter to the extent possible and to the latter to the extent possible and then only the 'peak' of the credits (i.e. the unexplained then only the 'peak' of the credits (i.e. the unexplained then only the 'peak' of the credits (i.e. the unexplained expenses for which there is no corresponding unexplained expenses for which there is no corresponding unexplained expenses for which there is no corresponding unexplained receipts) should be treated as unexplained. In other words, receipts) should be treated as unexplained. In other words, receipts) should be treated as unexplained. In other words, 'Peak Credit Theory' involves knocking o 'Peak Credit Theory' involves knocking off of unexplained ff of unexplained credits and unexplained debits arranged in a chronological credits and unexplained debits arranged in a chronological credits and unexplained debits arranged in a chronological order. 6.14 Further, the Hon'ble Allahabad High Court in the 6.14 Further, the Hon'ble Allahabad High Court in the 6.14 Further, the Hon'ble Allahabad High Court in the cases of Commissioner' of Income cases of Commissioner' of Income-tax (Central), Kanpur v. tax (Central), Kanpur v. Fertilizer Traders [2014] 42 taxmann.com 476 (Allahabad) Fertilizer Traders [2014] 42 taxmann.com 476 (Allahabad) Fertilizer Traders [2014] 42 taxmann.com 476 (Allahabad) has held as under: held as under:- "14. Regarding the peak theory, it may be "14. Regarding the peak theory, it may be "14. Regarding the peak theory, it may be mentioned that the peak theory was defined in the mentioned that the peak theory was defined in the mentioned that the peak theory was defined in the Sampath Iyengar's Law of Income Sampath Iyengar's Law of Income-tax, Vol. tax, Vol.-3, 9th edition, page 3547. Accordingly, "Peak credit theory" edition, page 3547. Accordingly, "Peak credit theory" edition, page 3547. Accordingly, "Peak credit theory" - One of the commonest defects of an assesse One of the commonest defects of an assesse One of the commonest defects of an assessee, where a single credit or number of credits appear in where a single credit or number of credits appear in where a single credit or number of credits appear in the books in the account of any particular person the books in the account of any particular person the books in the account of any particular person side by side with a number of debits is that they side by side with a number of debits is that they side by side with a number of debits is that they should all be arranged in serial order, that a credit should all be arranged in serial order, that a credit should all be arranged in serial order, that a credit following a debit entry should be treated as following a debit entry should be treated as following a debit entry should be treated as referable to the latter to the extent possible and that, eferable to the latter to the extent possible and that, eferable to the latter to the extent possible and that, not the aggregate but only the "peak" of the credit not the aggregate but only the "peak" of the credit not the aggregate but only the "peak" of the credit should be treated as own explained. To, give a should be treated as own explained. To, give a should be treated as own explained. To, give a simple example, suppose there are credits in the simple example, suppose there are credits in the simple example, suppose there are credits in the assessee's book in the account. A or Rs. 5,000 each assessee's book in the account. A or Rs. 5,000 each assessee's book in the account. A or Rs. 5,000 each on ]«October, 1990 and again on 5th November, on ]«October, 1990 and again on 5th November, on ]«October, 1990 and again on 5th November, 1990 but there is a debit by way of repayment 1990 but there is a debit by way of repayment 1990 but there is a debit by way of repayment shown on 27th October, 1990, the explanation will shown on 27th October, 1990, the explanation will shown on 27th October, 1990, the explanation will be that the credit appearing on 5th November, • be that the credit appearing on 5th November, • be that the credit appearing on 5th November, • 198lhas 198lhas 198lhas or or or could could could have have have come come come out out out of of of the the the withdrawal/repayment on 27th withdrawal/repayment on 27th October, 1981. This October, 1981. This plea is generally as it is logical and acceptable plea is generally as it is logical and acceptable plea is generally as it is logical and acceptable (whether the creditor is a genuine party or not), (whether the creditor is a genuine party or not), (whether the creditor is a genuine party or not), provided there is nothing in the material on record to provided there is nothing in the material on record to provided there is nothing in the material on record to show that a particular withdrawal/repayment could show that a particular withdrawal/repayment could show that a particular withdrawal/repayment could not have been available on the not have been available on the date of the date of the subsequent credit. subsequent credit.
A refinement or extension of the plea occurs 15. A refinement or extension of the plea occurs 15. A refinement or extension of the plea occurs where the credits appear not in the same account where the credits appear not in the same account where the credits appear not in the same account
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 11 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 but in the accounts of different persons. Even then, but in the accounts of different persons. Even then, but in the accounts of different persons. Even then, if the genuineness of all the person is disbelieved if the genuineness of all the person is disbelieved if the genuineness of all the person is disbelieved and all the credits a and all the credits appearing in the different account ppearing in the different account are held to be the assessee's own moneys, the are held to be the assessee's own moneys, the are held to be the assessee's own moneys, the assessee assessee will will be be entitled entitled to to set set off off and and a determination of the peak credit after arranging determination of the peak credit after arranging determination of the peak credit after arranging all the credits in the chronological order." all the credits in the chronological order." 6.15 An identical view has also been ta 6.15 An identical view has also been taken by the ken by the Allahabad High Court in the case of Commissioner of Allahabad High Court in the case of Commissioner of Allahabad High Court in the case of Commissioner of Income-tax (Central), Kanpur v. Sharraf Trading Co. [2016] tax (Central), Kanpur v. Sharraf Trading Co. [2016] tax (Central), Kanpur v. Sharraf Trading Co. [2016] 67 taxmann.com 176 (Allahabad). 67 taxmann.com 176 (Allahabad). 6.16 Further, in case of Bhaiyalal Shyam Behari v CIT 6.16 Further, in case of Bhaiyalal Shyam Behari v CIT 6.16 Further, in case of Bhaiyalal Shyam Behari v CIT (2005) 276 ITR 38 (AIl.), the Hon'ble High Court (2005) 276 ITR 38 (AIl.), the Hon'ble High Court has upheld has upheld the view of the tribunal that working of the peak should be the view of the tribunal that working of the peak should be the view of the tribunal that working of the peak should be confined to the credits and withdrawals which are held to confined to the credits and withdrawals which are held to confined to the credits and withdrawals which are held to be non-genuine. genuine. 6.17 Further, Hon'ble Surat ITAT in the case of Poonam 6.17 Further, Hon'ble Surat ITAT in the case of Poonam 6.17 Further, Hon'ble Surat ITAT in the case of Poonam Developers Vs ACIT has held that Developers Vs ACIT ITA Nos. 15/SRT/2021 has held that Developers Vs ACIT ITA Nos. 15/SRT/2021 has held that the it is the net profit net income which has to be taxed he it is the net profit net income which has to be taxed he it is the net profit net income which has to be taxed when the transactions of receipts and expenses are when the transactions of receipts and expenses are when the transactions of receipts and expenses are related to business of the assessee. related to business of the assessee. 6.18 In the current case, as discussed above, the 6.18 In the current case, as discussed above, the 6.18 In the current case, as discussed above, the appellant has both unexplained receipts as well as appellant has both unexplained receipts as well as appellant has both unexplained receipts as well as unexplained d d expenditure expenditure expenditure of of of Rs.1,31,15,474/- Rs.1,31,15,474/ Rs.1,31,15,474/ and Rs.1,40,92,307/ Rs.1,40,92,307/- respectively respectively which which represents represents the the transactions transactions transactions of the of the of the appellant's business. appellant's business. appellant's business. Moreover, Moreover, Moreover, documents representing unaccounted receipts as well as documents representing unaccounted receipts as well as documents representing unaccounted receipts as well as unexplained expenditure were requisitioned during the unexplained expenditure were requisitioned during the unexplained expenditure were requisitioned during the action u/s 132A. Further, it is also noted that expenditure u/s 132A. Further, it is also noted that expenditure u/s 132A. Further, it is also noted that expenditure was incurred for the purpose of business and has direct was incurred for the purpose of business and has direct was incurred for the purpose of business and has direct link with income earned. Therefore, the contention of link with income earned. Therefore, the contention of link with income earned. Therefore, the contention of appellant for application of 'Peak Credit' in the current appellant for application of 'Peak Credit' in the current appellant for application of 'Peak Credit' in the current case is found to be acceptable. case is found to be acceptable. 6.19 Further, during the course of appellate proceedings, 19 Further, during the course of appellate proceedings, 19 Further, during the course of appellate proceedings, the appellant, vide its submission dated 03.01.2024 had the appellant, vide its submission dated 03.01.2024 had the appellant, vide its submission dated 03.01.2024 had submitted a working containing details of all the vouchers submitted a working containing details of all the vouchers submitted a working containing details of all the vouchers representing representing representing unexplained unexplained unexplained receipts receipts receipts and and and expenditure expenditure expenditure aggregating to Rs.1,31,15,474/ aggregating to Rs.1,31,15,474/- and Rs. 1,40,92,307/ Rs. 1,40,92,307/-
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 12 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 (refer para. 3.14) above arranged in chronological (refer para. 3.14) above arranged in chronological (refer para. 3.14) above arranged in chronological sequence of dates appearing on cash vouchers. The copy sequence of dates appearing on cash vouchers. The copy sequence of dates appearing on cash vouchers. The copy of the same is being reproduced of the same is being reproduced hereunder:
6.20 A detailed perusal of the above working reveals that after 6.20 A detailed perusal of the above working reveals that after 6.20 A detailed perusal of the above working reveals that after arranging all the arranging all the unexplained receipts and expenditure in unexplained receipts and expenditure in chronological sequence and after inclusion of entry of chronological sequence and after inclusion of entry of chronological sequence and after inclusion of entry of 'Unexplained Introduction le aggregating to Rs.9,76,833/ 'Unexplained Introduction le aggregating to Rs.9,76,833/ 'Unexplained Introduction le aggregating to Rs.9,76,833/- (Rs.9,00,000/ (Rs.9,00,000/- during F.Y. 2018-19 plus-i s.76,833/ i s.76,833/- during F.Y, 2021-22) whenever the unexplained rece 22) whenever the unexplained receipts. Sell short of Sell short of unexplained unexplained unexplained expenditure, expenditure, expenditure, the the the total total total closing closing closing balance comes comes to 'Nil'.
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 13 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 6.21 Therefore, applying the above concept of 'Peak 6.21 Therefore, applying the above concept of 'Peak 6.21 Therefore, applying the above concept of 'Peak Credit', this Credit', this 'Unexplained Introduction' aggregating to 'Unexplained Introduction' aggregating to Rs.9,76,833/ Rs.9,76,833/- actually actually represents represents the the excess excess of of total unexplained expenditure of Rs,l,40,92,307/ unexplained expenditure of Rs,l,40,92,307/- over and above the over and above the total unexplained receipts of Rs.1,31,15,474/ total unexplained receipts of Rs.1,31,15,474/- which ultimately which ultimately represents the actual net unexplained expenditure incurred by represents the actual net unexplained expenditure incurred by represents the actual net unexplained expenditure incurred by the appellant during the period from F.Y. 2018 the appellant during the period from F.Y. 2018-19 'to F.Y. 2 19 'to F.Y. 2020- 21 relevant to A.Y. 2019 21 relevant to A.Y. 2019-20 to A.Y. 2021-22, 6.22 Therefore, after applying the concept of 'Peak Credit1 in 6.22 Therefore, after applying the concept of 'Peak Credit1 in 6.22 Therefore, after applying the concept of 'Peak Credit1 in the current case and relying on the various applicable judicial the current case and relying on the various applicable judicial the current case and relying on the various applicable judicial precedents, precedents, precedents, the the the aggregate aggregate aggregate amount amount amount of of of net net net unexplained unexplained unexplained expenditure of Rs.9,76,833/ expenditure of Rs.9,76,833/-shallbe taxed u/s. 69C of the Act shallbe taxed u/s. 69C of the Act as under:- Assessment Assessment Amount of addition u/s. Year Year 69C6fthe Act
A.Y. 2019 A.Y. 2019-20 Rs.9,00,000 A.Y. 2020 A.Y. 2020-21 Rs. NIL A.Y. 2021 A.Y. 2021-22 Rs.76,833 Accordingly, the addition of Rs.1,31,15,474/ Accordingly, the addition of Rs.1,31,15,474/- made by the AO made by the AO u/s. 68 of t^ie u/s. 68 of t^ie Act is being deleted and the addition of Act is being deleted and the addition of unexplained expenditure made by the AO u/s. 69C of the Act unexplained expenditure made by the AO u/s. 69C of the Act unexplained expenditure made by the AO u/s. 69C of the Act aggregating aggregating to to Rs.1,66,87,006/- Rs.1,66,87,006/ is is being being restricted restricted to to Rs.9,76,833/ Rs.9,76,833/- in accordance with the table mentioned above. in accordance with the table mentioned above.”
We have heard the arguments of the Ld rd the arguments of the Ld. DR and perused the . DR and perused the written submission and paper book of the assessee available on written submission and paper book of the assessee available on written submission and paper book of the assessee available on record. We find that in the case, the documents of the cash We find that in the case, the documents of the cash We find that in the case, the documents of the cash vouchers were found to be entered in the cash book and after the vouchers were found to be entered in the cash book and after the vouchers were found to be entered in the cash book and after the search, the assessee has produced a cash flow statement and search, the assessee has produced a cash flow s search, the assessee has produced a cash flow s entered all those cash vouchers in the cash book. The source of the entered all those cash vouchers in the cash book. The source of the entered all those cash vouchers in the cash book. The source of the Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 14 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 cash expenditure has been explained through cash book. Therefore, cash expenditure has been explained through cash book. Therefore, cash expenditure has been explained through cash book. Therefore, in the case of the assessee, the theory of the peak credit cannot be in the case of the assessee, the theory of the peak credit cannot be in the case of the assessee, the theory of the peak credit cannot be applied and addition for the entire cash applied and addition for the entire cash vouchers which were not vouchers which were not entered into the cash book or source entered into the cash book or source of which has not been which has not been explained or co-related as either any sales or loans or other source. related as either any sales or loans or other source. related as either any sales or loans or other source. In the circumstances, such cash receipts are liable to be addition In the circumstances, such cash receipts are liable to be addition In the circumstances, such cash receipts are liable to be addition u/s 68 of the Act. The expenses whi u/s 68 of the Act. The expenses which are explained by way of the ch are explained by way of the cash flow statement and source cash flow statement and source of which attributed either to the which attributed either to the disclosed source or undisclosed source addition for which has been disclosed source or undisclosed source addition for which has been disclosed source or undisclosed source addition for which has been made u/d 68 of the Act made u/d 68 of the Act, can only be treated as ly be treated as explained and remaining expenses has to be hel has to be held as unexplained expenditure. The expenditure. The Ld. CIT(A) though in para 6.6 has treated the entire cash receipts as Ld. CIT(A) though in para 6.6 has treated the entire cash Ld. CIT(A) though in para 6.6 has treated the entire cash unexplained and upheld the addition made by the AO. However, unexplained and upheld the addition made by the AO. However, unexplained and upheld the addition made by the AO. However, deleted the addition in para 6.22 without any reasoning. In view of deleted the addition in para 6.22 without any reasoning. In view of deleted the addition in para 6.22 without any reasoning. In view of the above action of action of the Ld. CIT(A) cannot be e Ld. CIT(A) cannot be sustained and accordingly, we restore the matter back to the file of the Ld. we restore the matter back to the file of the Ld. we restore the matter back to the file of the Ld. Assessing Officer for deciding afresh in the light of our direction Assessing Officer for deciding afresh in the light of our direction Assessing Officer for deciding afresh in the light of our direction above.
5.1 The grounds of appeal of the Revenue are accordingly allowed The grounds of appeal of the Revenue are accordingly allowed The grounds of appeal of the Revenue are accordingly allowed for statistical purposes. purposes.
6. As far as grounds raised by the assessee in cross As far as grounds raised by the assessee in cross As far as grounds raised by the assessee in cross-objection are concerned, the assessee has raised ground , the assessee has raised grounds challenging validity of challenging validity of the proceedings u/s 153A of the Act. A roceedings u/s 153A of the Act. As no documentary evidence s no documentary evidence
Aveo Pharmaceuticals Pvt. Ltd Aveo Pharmaceuticals Pvt. Ltd 15 & 3008/MUM/2024 & & 3008/MUM/2024 CO No. 242 & 243/Mum/2024 CO No. 242 & 243/Mum/2024 in support of grounds raised have been filed b in support of grounds raised have been filed before us therefore, all efore us therefore, all these grounds are dismissed as infructuous. these grounds are dismissed as infructuous.
Identical grounds have been raised in the assessment year Identical grounds have been raised in the assessment year Identical grounds have been raised in the assessment year 2021-22 by the Revenue and the assessee therefore, following our 22 by the Revenue and the assessee therefore, following our 22 by the Revenue and the assessee therefore, following our finding in assessment year 2020 finding in assessment year 2020-21, the grounds raised in the 21, the grounds raised in the appeal of the Revenue for assessment year 2021 appeal of the Revenue for assessment year 2021-22 are allowed for 22 are allowed for statistical purposes whereas grounds raised in the cross-objection statistical purposes whereas grounds raised in the cross statistical purposes whereas grounds raised in the cross by the assessee are dismissed. by the assessee are dismissed.
In the result, the appeals of the Revenue for both the In the result, the appeals of the Revenue for both the In the result, the appeals of the Revenue for both the assessment years are allowed for assessment years are allowed for statistical purposes whereas the statistical purposes whereas the cross-objection of the assessee for both the assessment years are objection of the assessee for both the assessment years are objection of the assessee for both the assessment years are dismissed.