In absence of incriminating evidence from a search, completed assessments under Section 153A cannot be altered.

ORDER

PER: RATHOD KAMLESH JAYANTBHAI, AM

Feeling dissatisfied with the order of the Commissioner of Income Tax (Appeals), Jaipur -4 [ for short CIT(A) ] dated 11/12/2024 for assessment year 2015-16 the revenue preferred the present appeal. The ld. CIT(A) passed that order because the assessee challenged the order of the assessment dated 31.05.2021 passed under section 153A of the Income Tax Act, 1961 [ for short Act ] by ACIT, Central Circle-03, Jaipur [ for short AO].

2. Revenue assailed the present appeal on the following grounds: -

Ground 1. Whether on the facts and in the circumstances of the case, the Id. CIT(A) erred in deleting the addition of Rs.1,70,00,000/- in respect of unexplained share capital/premium received from M/s GRG Mercantile Pvt. Ltd which is factually an accommodation entry and the same fact was admitted by Sh. Satish Monga, director M/s GRG Mercantile Pvt. Ltd. in his statement recorded u/s 132(4) of the Act.

Ground 2. Whether on the facts and in the circumstances of the case, the Id. CIT(A) erred in deleting the addition of Rs. 3,40,000/-made by the A.O. on account of commission paid for obtaining accommodation entry in the form of share premium disregarding the fact that the same fact was admitted by Sh. Satish Monga, director M/s GRG Mercantile Pvt. Ltd. in his statement recorded u/s 132(4) of the Act.

Ground 3. The appellant craves leave or reserves right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.

2.1 Vide application dated 08.07.2025 revenue filed an additional ground which reads as under ;

“1. Whether on the facts and circumstances of the case, the Ld. CIT(A) is justified in deciding the case on technical ground only and in not adjudicating the merits of the case ignoring the fact that this is the matter of organized tax evasion through obtaining accommodation entries.

3. Succinctly, the fact as culled out from the records is that in this case, original return of income was e-filed on 13.09.2015 for the A.Y. 2015-16 declaring Nil income by the assessee. Consequent to the search conducted on 09.07.2018 in the case of Supreme Group, Jaipur to which the assessee belongs, various assets/books of account and documents were found and seized as per annexure prepared while search. Accordingly, notice u/s 153A of the Act, for the assessment year 2015-16 was issued on 11.02.2019 and duly served upon the assessee. In compliance with the notice u/s 153A of the IT Act, 1961, return of income was e-filed on 19.03.2019 for the A.Y. 2015-16 declaring Nil income.

3.1 Thereafter notice u/s 143(2) of the IT Act, 1961 was issued on 01.02.2021, which was duly served upon the assessee. Notice u/s 142(1) of the IT Act, 1961 was issued on 30.12.2020 along with questionnaire & Annexure requiring certain details/ information, which was duly served upon the assessee and the same complied with by the assessee. Based on the information in possession of the revenue that a search & seizure action u/s 132 of the Act was carried out in the case of Supreme Group on 09.07.2018, which was involved in taking bogus and ingenuine share premium from the company M/s GRG Merchantiles Pvt. Ltd., thereby the in the assessment proceeding the assessee was asked vide questionnaire dated 30.12.2020 to substantiate the creditworthiness and genuineness of the investment of Rs.1,70,00,000/- made by the company M/s GRG Merchantiles Pvt. Ltd. The assessee filed the reply. Ld. AO noted that the reply filed by the assessee is considered but not found acceptable because as he noted that the assessee-company has issued shares of face value of Rs.10 at exorbitantly high premium of Rs.240 per share during the A.Y. 2015-16 to a company viz. GRG Merchantiles Pvt. Ltd. The total quantum of share cap