FVIY 7(1), MUMBAI V. VHB LIFE SCIENCE LTD, MUMBAI

ITA 5612/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88410 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 03-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SACHCHIDANAND DUBEY
• Assessee Lawyers: B V JHAVERI
• Keywords: Unexplained investment; Unexplained expenditure
• Section: 69C; 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL F , BENCH MUMBAI , BEFORE : SHRI R.C.SHARMA, AM & SHRI VIVEK VARMA , JM ITA NO. 5612 / MUM/20 1 3 ( ASSESSMENT YEAR : 20 10 - 11 ) DCIT - 7(3), MUMBAI VS. M/S VHB LIFE SCIENCES LTD., 50, AB, GOVERNMENT INDUSTRIAL ESTATE, CHARKOP NAKA, KANDIVALI (WEST), MUMBAI - 400067 PAN/GIR NO. : A ACCV 5103 A ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : SHRI SACHCHIDANAND DUBEY /ASSESSEE BY : SHRI B.V.JHAVERI DATE OF HEARING : 15 / 01 /201 5 DATE OF PR ONOUNCEMENT : 18 /0 2 /2015 O R D E R PER R.C.SHARMA ( A .M.) : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 4 - 6 - 2013 , FOR THE ASSESSMENT YEAR 20 10 - 11 , IN THE MATTER OF ORDER PASSED U/S. 143(3) OF THE I.T.A CT , WHEREIN FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE REVENUE : - (I) THE LEARNED CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION OF RS. 3,99,50,717/ - MADE U/S.69C ON ACCOUNT OF UNEXPLAINED INVESTMENT WITHOUT PROPERLY APPRECIATING THE FACTUAL AN D LEGAL MATRIX OF THE CASE AS CLEARLY BROUGHT OUT BY THE ASSESSING OFFICER. (II) THE LEARNED CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION OF RS.3,99 ,50,717/ - MADE U/S.69C ON ACCOUNT OF UNEXPLAINED INVESTMENT BY HOLDING THAT SINCE THE TRAN SACTION WAS MADE THROUGH BANKING CHANNEL THEREFORE THE PROVISION OF SECTION 69C OF THE ACT WERE NOT ATTRACTED APPLICABLE. ITA NO. 5612 /20 1 3 2 2 . RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT BESIDES ITS ACTIVITY OF ACTUAL S ALE AND PURCHASE O F DRUGS PHARMACEUTICAL S ETC., DURING THE YEAR UNDER CONSIDERATION AND ALSO IN EARLIER YEARS, THE ASSESSEE WAS INDULGED IN ENTERING INTO CIRCUITOUS PAPER TRANSACTIONS WITH LITIKA GROUP. THE ASSESSEE ENTERED ACCOMMODATION (PAPER) PURCHASE SALE TRANSACTIONS. ON PERUSAL OF TOTAL TRANSACTIONS WITH LITIKA GROUP, IT WAS NOTICED THAT ASSESSEE HAD RECEIVED A TOTAL PAYMENT OF RS.200 .40 CRORES, WHEREAS, IT HAD MADE A PAYMENT OF R S .177.45 CRORES TO THE SAME GROUP DURING THE YEAR AND IN THE PRECEDING YEARS. THUS, IN THE PROCESS OF EXECUTING PAPER TRANSACTIONS, THE ASSESSEE HAD RECEIVED A NET EXCESS PAYMENT OF RS.22.95 CRORES, OVER AND ABOVE THE PAYMENT MADE IN THE CIRCUITOUS TRANSACTIONS. THE EXCESS PAYMENT RECEIVED PERTAINING TO THE YEAR UNDER CONSIDERATION WAS AMOUNTIN G TO RS.3,99,50,717 / - WHICH HAS BEEN ADDED BY TH E AO IN THE INCOME OF ASSESSEE U/S. 69C OF THE ACT . 3. BY THE IMPUGNED ORDER, THE CIT(A) DELETED THE ADDITION AFTER HAVING FOLLOWING OBSERVATIONS : - 3.3 I HAVE CONSIDERED THE FACTS OF THE CASE. THE APPELLANT WAS ENGAGED IN THE BUSINESS OF TRADING AND MANUFACTURING OF DRUGS, VACCINE AND PHARMACEUTICALS AND ALLIED PRODUCTS. DURING THE YEAR, THE APPELLANT HAD SALES/TURNOVER OF RS.280.64 CRORES. AS DISCUSSED ABOVE, THE INVESTIGATION WING OF THE DEPARTMENT CARRIED OUT SEARCH ACTION U/S.132 OF THE ACT ON THE PREMISES OF LITIKA GROUP OF PUNE. THE SEARCH ACTION OF LITIKA GROUP REVEALED THAT SUCH GROUP HAD CIRCUITOUS / PAPER TRANSACTIONS WITH THE APPELLANT. CONSEQUENTLY, THE INVESTIGATION WING OF THE DEPARTMENT CARRIED OUT A SURVEY ACTION AT THE PREMISES OF APPELLANT COMPANY. SUCH SURVEY ACTION REVEALED THAT DURING ASSESSMENT YEAR 2007 - 08,2008 - 09 AND AY 2009 - 10, THE APPELLANT ENTERED INTO CIRCUITOUS TRANSACTIONS WITH LITIKA GROUP BY ISSUING ACCOMMODATION/PAPER SALE / PU RCHASE BILLS. THE YEAR - WISE BREAK - UP OF SUCH ACCOMMODATION TRANSACTIONS WERE AS UNDER: - ITA NO. 5612 /20 1 3 3 YEAR TOTAL ACCOMMODATION SALES TOTAL ACCOMMODATION PURCHASES PROFIT ON SUCH ACCOMMODATION TRANSACTIONS 2007 - 08 38,14,66,393 23,59,88,547 14,54,77,846 2008 - 09 146,48,26,338 102,04,44,691 44,43,81,647 2009 - 10 129,48,38,780 129,10,56,021 37,82,759 TOTAL 70,99,79,096 THUS, DURING THE YEAR AND IN EARLIER YEARS, THE APPELLANT WAS ENGAGED IN ACTUAL SALE/PURCHASE OF GOODS/PRODUCTS AND ALSO ACCOMMODATION S ALE PURCHASE OF GOODS. THE GROSS SALES DURING THE YEAR WERE AT RS.280.64 CRORES OUT OF WHICH SALES OF R S .129 .48 CRORES WERE ON ACCOUNT OF CIRCUITOUS TRANSACTIONS. ON ACCOUNT OF THESE, CIRCUITOUS TRANSACTIONS, THE APPELLANT MADE PAYMENT FOR PAPER PURCHASES AND ALSO RECEIVED PAYMENTS ON ACCOUNT OF PAPER SALES. THE AO NOTICED THAT DURING ALL THESE YEARS, THE APPELLANT HAD MADE PAYMENTS FOR PAPER TRANSACTIONS TOTALING TO RS.177 .45 CRORES WHEREAS, IT HAD RECEIVED PAYMENTS FOR PAPER TRANSACTIONS TOTALING TO RS.20 0 .40 CRORES. THUS, DURING THESE YEARS, THE APPELLANT RECEIVED NET EXCESS PAYMENT OF RS.22.95 CRORES, OUT OF WHICH RS.3,99,50,717/ - EXCESS PAYMENT RECEIVED WERE PERTAINING TO THE YEAR UNDER CONSIDERATION. AFTER CONSIDERING APPELLANT'S SUBMISSIONS, THE AO HA S CONSIDERED THIS AMOUNT OF RS.3,99,50,717/ - AS APPELLANTS UNEXPLAINED EXPENDITURE U/S.69C OF THE ACT BY PRESUMING THAT THE EQUIVALENT AMOUNT HAD BEEN TRANSFERRED BY THE APPELLANT TO LITIKA GROUP OUTSIDE THE BOOKS OF ACCOUNTS. I HAVE CONSIDERED THE FACT S OF THE CASE. IT WAS A FACT ADMITTED BY APPELLANT AS WELL AS BY THE AO THAT TRANSACTIONS WITH THE LITIKA GROUP WERE MERE PAPER TRANSACTIONS. IT WAS ALSO A FACT ON RECORD THAT THE AMOUNTS PERTAINING TO SUCH PAPER PURCHASE I SALES TRANSACTIONS WERE ROUTED T HROUGH NORMAL BANKING CHANNELS AND THERE WAS NO INVOLVEMENT OF EXCHANGE OF CASH BETWEEN THE TWO PARTIES FOR THESE CIRCUITOUS TRANSACTIONS. IT WAS ALSO AN ADMITTED FACT THAT ALL THESE CIRCUITOUS TRANSACTIONS HAD BEEN REGULARLY ACCOUNTED BY THE APPELLANT IN THE BOOKS OF ACCOUNTS. THE AO HAS MENTIONED FIGURES OF SUCH CIRCUITOUS SALE I PURCHASE ON PAGE - 4 OF THE ASSESSMENT ORDER. PERUSAL OF SUCH FIGURES REVEALS THAT THESE CIRCUITOUS PURCHASE AND SALES TRANSACTIONS HAVE RESULTED IN ADDITIONAL PROFITS TO THE APPEL LANT. ALL THESE CIRCUITOUS TRANSACTIONS WERE ENTERED INTO BOOKS OF ACCOUNTS AND THE PROFIT EARNED THEREON HAD BEEN DULY SHOWN IN THE PROFIT AND LOSS ACCOUNT. THE APPELLANT HAD PAID TAXES ON PROFITS EARNED ON ACTUAL TRANSACTIONS AND HAS ALSO PAID TAXES ON P ROFIT EARNED ON THESE CIRCUITOUS TRANSACTIONS. THUS, IT WAS NOT A CASE THAT THE PROFIT EARNED ON SUCH CIRCUITOUS TRANSACTIONS HAS BEEN ADJUSTED BY THE APPELLANT AGAINST ANY EXPENSES OR LOSSES. WITHOUT PREJUDICE TO THE MORALITY OF SUCH CIRCUITOUS TRANSACTIO NS, BY ENTERING INTO SUCH CIRCUITOUS TRANSACTIONS, THE APPELLANT HAD NOT VIOLATED ANY PROVISIONS OF THE I T ACT. ON SUCH PAPER TRANSACTIONS, THE APPELLANT EARNED PROFIT ON WHICH THE APPELLANT HAD PAID THE TAXES. THUS, THE APPELLANT HAD ALSO PAID TAXES ON T HE PROFITS WHICH WAS NOT REAL INCOME OF THE APPELLANT BUT IT WAS MERE PROFIT ARISING OUT OF PAPER CIRCUITOUS ITA NO. 5612 /20 1 3 4 TRANSACTIONS. THUS, SO FAR AS APPELLANT IS CONCERNED, THERE WAS NO LOSS OF REVENUE TO THE DEPARTMENT ON ACCOUNT OF APPELLANT'S ENTERING INTO SUCH C IRCUITOUS TRANSACTIONS. DURING ALL THESE YEARS, THE APPELLANT HAD RECEIVED EXCESS' AMOUNT OF RS.22.95 CRORES ON ACCOUNT OF SUCH CIRCUITOUS TRANSACTIONS. IT IS WORTH TO CLARIFY HERE THAT THE AMOUNTS PERTAINING TO SUCH CIRCUITOUS TRANSACTIONS DURING ALL TH ESE YEARS WERE MUCH MORE BUT OUT OF THOSE AMOUNTS, THE APPELLANT RECEIVED TOTAL PAYMENTS OF RS.200 .40 CRORES AND MADE PAYMENTS OF RS.177.45 CRORES DURING THESE YEARS. THUS, DURING ALL THESE YEARS, APPELLANT RECEIVED EXCESS PAYMENT OF RS.22.95 CRORES. OUT O F THIS, EXCESS PAYMENT OF RS.3,99,50,717/ - WAS PERTAINING TO ASSESSMENT YEAR UNDER CONSIDERATION. THE AO HAS MADE ADDITION OF RS.3,99,50,717/ - U/S. 69C OF THE ACT IN THE INCOME OF THE APPELLANT. THE AO, IN PARA - 5.2 OF THE ASSESSMENT ORDER, HAS PRESUMED T HAT EQUIVALENT AMOUNT OF RS. 3,99,50,717/ - WAS TRANSFERRED BY APPELLANT TO LITIKA GROUP AND THEREFORE, SUCH CASH AMOUNT TRANSFERRED BY APPELLANT REPRESENTS APPELLANT'S UNEXPLAINED EXPENDITURE. I HAVE CONSIDERED THE AO'S FINDINGS. SECTION 69C OF THE I T ACT DEALS WITH THE UNEXPLAINED EXPENDITURE INCURRED BY A PERSON. HOWEVER, IN THE CASE UNDER CONSIDERATION, THERE IS NO FINDING IN THE ASSESSMENT ORDER SUGGESTING THAT THE APPELLANT HAD INCURRED ANY SUCH UNEXPLAINED EXPENDITURE. THERE WERE NO DOCUMENTS/EVIDENC ES FOUND DURING SURVEY OPERATION, SUGGESTING THAT THE APPELLANT HAD INCURRED ANY SUCH UNEXPLAINED EXPENDITURE TOTALING TO RS.3,99,50,717/ - . EVEN THE ENQUIRES MADE DURING ASSESSMENT PROCEEDINGS, IF ANY, HAD NOT REVEALED THAT THE APPELLANT HAD INCURRED ANY SUCH UNEXPLAINED EXPENDITURE. THE AO HAS PRESUMED THAT THE APPELLANT HAD TRANSFERRED EQUIVALENT CASH OF RS.3, 99,50, 717 / - TO THE LITIKA GROUP. HOWEVER, NEITHER THE SURVEY OPERATIONS CARRIED OUT NOR THE ENQUIRES MADE, IF ANY, DURING ASSESSMENT PROCEEDINGS HAD REVEALED THAT THE APPELLANT HAD TRANSFERRED CASH OF RS.3,99,50,717 / - TO LITIKA GROU P. NO EVIDENCES OF TRANSFER OF CASH OF RS. 3,99,50,717/ - HAD BEEN FOUND DURING SURVEY OPERATIONS ON APPELLANT OR DURING ENQUIRY PROCEEDINGS, IF ANY MADE DURING ASSESSMEN T PROCEEDINGS. IN THE ASSESSMENT ORDER, THE AO HAS ALSO NOT DISCUSSED AS TO WHETHER ANY EVIDENCES/ DOCUMENTS WERE FOUND DURING SEARCH OPERATIONS CARRIED OUT ON LI TIKA GROUP. THERE IS ALSO NOTHIN G ON RECORD TO SUGGEST THAT THE APPELLANT AND THE LITIKA GROUP OF PUNE WERE INVOLVED IN SOME OTHER SCAM/SCANDAL INVOLVING MONEY LAUNDERING OR VIOLATION OF ANY LAW. IN THE FACTS AND CIRCUMSTANCES, THE PROVISIONS OF SECTION 69C OF THE ACT WERE NOT ATTRACTED/APPLICABLE. THE EXCESS PAYMENT RECEIVED DURING THE YE AR AMOUNT ING TO RS.3, 99,50,717 / - WERE DULY FORMING PART OF GROSS SALES OF THE YEAR ON WHICH PROFIT WAS EARNED AND TAXES WERE DULY PAID. ADDITION MADE BY THE AO, THEREFORE, AMOUNTS OF DOUBLE TAXATION OF AMOUNT OF RS. 3,99,50,717. THE AO HAS MADE ADDITION OF RS. 3,99,50,717 / - U/S. 69 C OF THE ACT. AS DISCUSSED ABOVE, SINCE THE PROVISIONS OF SECTION 69C WERE NOT APPLICABLE, THEREFORE THE ADDITION MADE BY AO IS DELETED. ITA NO. 5612 /20 1 3 5 AGAINST THE ABOVE ORDER OF CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE CONSIDERED R IVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND ALSO DELIBERATED ON THE JUDICIAL PRONOUNCEMENTS CITED AT BAR WITH REGARD TO ADDITION TO BE MADE U/S.69C OF THE IT ACT . 5. FROM THE RECORD, WE FOUND THAT ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING AND MANUFACTURING OF DRUGS. THE ASSESSEE WAS HAVING BUSINESS DEALING WITH LITIKA GROUP OF PUNE. THERE WAS SEARCH AT THE PREMISES OF LITIKA GROUP U/S.132. DURING THE COURSE OF SEARCH IT WAS FOUND THAT LITIKA GROUP HAD ENTERED INT O VARIOUS CIRCUITOUS PAPER TRANSACTIONS WITH THE ASSESSEE. THEREAFTER SURVEY WAS ALSO UNDERTAKEN AT ASSESSEES PREMISES. ON SURVEY IT WAS REVEALED THAT ASSESSEE HAD ENTERED INTO CIRCUITOUS TRANSACTIONS WITH LITIKA GROUP BY ISSUING ACCOMMODATION/PAPER SALE/ PURCHASE BILLS. D URING THE YEAR UNDER CONSIDERATION IN RESPEC T OF ACCOMMODATION SALES BILL I SSUED BY THE ASSESSEE, THE AO FOUND THAT THE ASSESSEE HAD RECEIVED EXCESS PAYMENT OF RS. 3.99 CRORES. THE AO HELD THAT THE EXCESS AMOUNT OF RS.3,99,50,717/ - RECEIVED BY THE ASSESSEE IS ASSESSEES UNEXPLAINED EXPENDITURE U/S.69C OF THE ACT BY PRESUMING THAT THE ASSESSEE HAS TRANSFERRED EQUIVALENT AMOUNT TO LITIKA GROUP OUTSIDE THE BOOKS OF ACCOUNTS. 6. FROM THE RECORD WE ALSO FOUND THAT ASSESSEE HAS ACCOMMODATED LITIK A GROUP BY ISSUING SALES BILLS. IN ORDER TO HAVE CORRESPONDING CHARGES LITIKA GROUP ISSUED PURCHASE BILL TO THE ASSESSEE. THUS, THE INVENTORY WAS BALANCED. SINCE TRANSACTION HAD BEEN REGULARLY ACCOUNTED IN THE ITA NO. 5612 /20 1 3 6 BOOKS OF ACCOUNTS, THE DIFFERENCE BETWEEN THE SALES AND PURCHASE PRICE RESULTED INTO PROFIT TO THE ASSESSEE. ON SUCH PROFIT THE ASSESSEE HAS PAID DUE TAXES BY DULY INCORPORATING SUCH PROFIT IN ITS PROFIT AND LOSS ACCOUNT TO COMPOSITE THAT ADDITIONAL TAX LIABILITY. THE LITIKA GROUP ISSUED CHEQUES TO TH E ASSESSEE. THE DETAILS OF SUCH SALES BILLS ISSUED BY THE ASSESSEE, THE PURCHASES MADE FROM LITIKA GROUP AND THE AMOUNT PAID TO AND RECEIVED FROM LITIKA GROUP HAVE DULY BEEN INCORPORATED BY THE AO IN HIS ASSESSMENT ORDER. FROM THESE DETAILS IT IS CLEAR THA T ASSESSEE HAS OFFERED PROFIT ON ACCOUNT OF SALES AND PURCHASES MADE FROM LITIKA GROUP AND CORRESPONDING TAX LIABILITY HAS BEEN REIMBURSED BY THE LITIKA GROUP TO THE ASSESSEE. THUS THERE WAS NEITHER ANY UNEXPLAINED EXPENDITURE NOR ANY INCOME AS ACCRUED TO THE ASSESSEE. WHATEVER THE INCOME ACCRUED HAS BEEN DULY ACCOUNTED FOR IN THE REGULAR BOOKS OF ACCOUNTS AND TAXES HAVE ALREADY BEEN PAID THEREON. DURING THE ASSESSMENT YEAR 2007 - 08 TO 2010 - 11, THE ASSESSEE HAD MADE PAYMENT FOR SUCH PAPER TRANSACTIONS TOTA LING TO RS.177.45 CRORES, AGAINST WHICH IT HAD RECEIVED PAYMENT FOR PAPER TRANSACTION AMOUNTING TO RS.200.40 CRORES. THUS, DURING THESE YEARS, THE ASSESSEE HAD RECEIVED NET EXCESS PAYMENT OF RS.22.95 CRORES, OUT OF WHICH RS.3.99 CRORES EXCESS PAYMENT RECEI VED WERE PERTAINING TO THE YEAR UNDER CONSIDERATION. 7. THERE IS NO DISPUTE TO THE FACT THAT TRANSACTION S ENTERED INTO BY THE ASSESSEE WITH THE LITIKA GROUP WERE MERE PAPER TRANSACTIONS AS ACCEPTED BY THE AO . THERE IS ALSO NO DISPUTE TO THE FACT THAT ALL T HE AMOUNTS OF SUCH PAPER PURCHASE/SALE TRANSACTION WERE ROUTED THROUGH BANKING CHANNELS. NO TRANSACTION OF CASH DEALING WAS FOUND EITHER DURING THE COURSE OF ITA NO. 5612 /20 1 3 7 SEARCH AT LITIKA GROUP NOR DURING THE COURSE OF SURVEY AT ASSESSEES PREMISES. IT IS ALSO A MATTER OF RECORD THAT ALL THESE TRANSACTIONS WERE ENTERED BY THE ASSESSEE IN ITS REGULAR BOOKS OF ACCOUNTS. SUCH CIRCUITOUS TRANSACTIONS WERE ENTERED INTO BOOKS OF ACCOUNTS AND THE PROFIT EARNED THEREON HAD BEEN DULY SHOWN IN THE PROFIT AND LOSS ACCOUNT. THERE I S ALSO NO DISPUTE TO THE FACT THAT ON ENTIRE PROFIT EARNED ON ACTUAL TRANSACTIONS AS WELL AS CIRCUITOUS TRANSACTIONS OF PURCHASE AND SALES, THE ASSESSEE HAD PAID DUE TAXES ON PROFIT EARNED ON ALL THESE TRANSACTIONS. IT IS NOT THE CASE OF THE AO THAT PROFIT EARNED ON SUCH CIRCUITOUS TRANSACTIONS HAVE NOT BEEN ACCOUNTED FOR BY THE ASSESSEE IN ITS BOOKS OF ACCOUNTS, NOR IT IS THE CASE OF AO THAT SUCH PROFIT WAS ADJUSTED AGAINST ANY EXPENSES OR LOSSES. THUS, THERE IS NO LOSS TO THE DEPARTMENT INSOFAR AS ASSESSE E HAS PAID DUE TAXES EVEN ON THE PROFIT EARNED ON SUCH CIRCUITOUS TRANSACTION S . FOR THE YEAR UNDER CONSIDERATION THE ASSESSEE HAD FILED ITS RETURN AT INCOME OF RS.1.50 CRORE, WHICH HAS NOT BEEN DISTURBED BY THE AO. THE PROVISION OF SECTION 69C IS APPLICABL E WHEREIN ANY FINANCIAL YEAR ASSESSEE HAS INCURRED ANY EXPENDITURE BUT FAILS TO OFFER ANY EXPLANATION ABOUT THE SOURCE OF SUCH EXPENDITURE. IN THE INSTANT CASE THE ASSESSEE HAS NEITHER INCURRED ANY EXPENSES NOR WAS NOT FOUND TO HAVE INCURRED ANY EXPENDITUR E, THEREFORE, THERE IS NO QUESTION OF EXPLANATION REGARDING SOURCE OF SUCH EXPENDITURE. ACCORDINGLY, THERE WAS NO JUSTIFICATION ON THE PART OF THE AOS ACTION FOR MAKING ANY ADDITION U/S.69C . N EITHER DURING THE COURSE OF SEARCH AT LITIKA GROUP NOR DURING T HE COURSE OF SURVEY AT ASSESSEES PREMISES NOR DURING THE ENQUIRIES MADE AFTER SURVEY REVEAL THAT ASSESSEE HAD TRANSFERRED CASH OF RS. 3.99 CRORES TO LITIKA GROUP. ITA NO. 5612 /20 1 3 8 THERE IS ALSO NOTHING ON RECORD TO SUGGEST THAT ASSESSEE AND LITIKA GROUP WERE INVOLVED IN SO ME SCAM/SCANDAL INVOLVING MONEY LAUNDERING OR VIOLATION OF ANY LAW. AFTER CONSIDERING ALL THESE FACTUAL POSITION, THE CIT(A) RECORD ED DETAILED FINDING AT PARA 3.3 OF HIS APPELLATE ORDER AND HELD THAT PROVISIONS OF SECTION 69C ARE NOT ATTRACTED. IT IS ALSO NOT THE CASE OF THE DEPARTMENT THAT EXCESS PAYMENT RECEIVED DURING THE YEAR AMOUNTING TO RS. 3.99 CRORES WAS NOT FORMING PART OF THE GROSS RESULTS OF THE ASSESSEE ON WHICH PROFIT WAS EARNED AND TAXES WERE DULY PAID. THE DETAILED FINDING R ECORDED BY THE CIT( A) AT PAGES 10 TO 14, PARA 3.3 HAVE NOT BEEN CONTROVERTED BY DEPARTMENT BY BRINGING ANY POSITIVE MATERIAL ON RECORD. ACCORDINGLY, WE DO NOT FIND ANY REASON TO INTERFERE IN THE FINDINGS RECORDED BY THE CIT(A) RESULTING INTO DELETION OF ADDITION MADE U/S.69 C OF THE ACT. 8 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH FEB. 201 5 . SD/ - SD/ - ( ) ( VIVEK VARMA ) ( ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 18 / 0 2 /201 5 /PKM , PS COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE R ESPONDENT. 3. / THE CIT(A), MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//