Shrivallabh Pittie South West Industries Ltd. (Now known as Platinum Textiles Ltd.) Vs. Dy. CIT Central Circle 8(2)

Parties Involved

Facts Summary

A search and seizure action under Section 132 of the Income Tax Act, 1961 was carried out at the registered office of the assessee on 22.08.2017. Consequently, a notice under Section 153A of the Act was issued to the assessee. The assessee filed an application before the Income Tax Settlement Commission on 14.10.2019, which was rejected by order dated 14.12.2020. The jurisdiction then came to the Assessing Officer, and the assessment was completed for the year under consideration under Section 153A read with Section 144 of the Act. The Assessing Officer recorded a satisfaction note that the assessee provided accommodation entries of bogus bills to M/s Oneworld Group companies and therefore, must have obtained bogus purchase bills. Notice under Section 153C of the Act was issued for the assessment year corresponding to the search period including the assessment year under consideration. The Assessing Officer made an addition for the amount of Rs. 28,21,44,903/- under Section 69C of the Act on account of commission paid on accommodation sales and purchase of fabric etc.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in deleting the addition made by the Assessing Officer under Section 69C of the Income Tax Act, 1961 on account of commission income.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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