Avance Technologies Limited Vs ACIT, Central Circle – 2(2), Mumbai

Parties Involved

Facts Summary

The assessee company, Avance Technologies Limited, filed its return of income for A.Y. 2017-18 declaring income of Rs. 17,43,210/-. The case was selected for complete scrutiny. The assessing officer noted that the assessee-company is part of the Shirish C. Shah group, which was involved in providing accommodation entries. The assessing officer identified sales and investments that were deemed to be bogus and added commission income accordingly. The assessee made cash deposits during the demonetization period, which the assessing officer treated as unexplained money. Aggrieved by these additions, the assessee filed an appeal before the CIT(A), which was partially allowed. The assessee then filed the present appeal before the Tribunal.…

Legal Issues

• 1. Validity of orders passed by AO and CIT(A)
• 2. Addition of commission income on sales
• 3. Addition of commission income on investment
• 4. Allowing telescoping benefits
• 5. Cash deposit during demonetization period
• 6. Same as Ground No. 3 & 4

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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