For unabated assessments, no additions can be made in absence of incriminating material found during search at the assessee's premises.

ORDER

PER Bench

These appeals by the assessee for assessment years 2014-15 to 2019-20 respectively are directed against a common order dated 29.11.2024 passed by the Ld. Commissioner of Income-tax (Appeals) — 11, Pune [in short ‘the Ld. CIT(A)’] arising out of assessments framed under Section 153A of the Income-tax Act, 1961 (hereinafter referred to as "the Act") pursuant to a search and seizure operation conducted on 27.11.2019 under Section 132 of the Act.

2. As common issues-in-dispute are involved in these appeals and therefore, same were heard together and disposed off by way of this consolidated order for the sake of convenience.

3. Briefly stated, facts of the case are that a search and seizure action u/s 132 of the Act was carried out on 27.11.2019 at the premises of “Dodhia” Group of cases including the assessee along with other concern/business associates. During the course of the search, various documents were seized, and statements of various individuals were recorded. One such individual was Shri Bhadresh Dodhia, who, in his statement recorded under Section 132 (4) of the Act, was confronted with questions regarding the genuineness of unsecured loans/share application money received from several Kolkata-based companies. Initially, he declined to comment or clarify the source or veracity of the transactions. Subsequently, on the basis of pages 36 to 38 of Bundle No. 3 seized from the residence of one Shri Divyesh Dhanani, further questions were put to Shri Bhadresh Dodhia, particularly in relation to the column titled “return” in seized document indicating probable cash repayments after deduction of commission. Yet again, he declined to offer any explanation. It was only upon being shown statements of certain accommodation entry operators , Shri Bhadresh Dodhia admitted that the Dodhia Group had engaged in routing unaccounted cash into its books through entities such as Vinam Finance Pvt. Ltd.

3.1 In view of search action carried out at the premises of the assessee notices u/s 153A of the Act were issued for assessment years from 2014-15 to 2020-21 and assessment u/s 153A of the Act were accordingly completed on 28.09.2021, wherein, the Assessing Officer made additions for the various loans and interest thereon in relevant assessment years.

3.2 In assessment year 2014-15, the Assessing Officer made addition of Rs.55 lakhs u/s 68 of the Act for alleged accommodation entry of unsecured loan received from three parties namely, (i) Mili Commodities Pvt. Ltd. (Rs.15,00,000/-); (ii) Value Added Merchants Pvt. Ltd. (Rs.20,00,000/-); and (iii) Dolphin Commerce Pvt. Ltd. Rs.20,00,000/-). Further, interest of Rs.17,18,794/- paid in respect of these loans was also disallowed.

3.3 In assessment year 2015-16 addition for unsecured loan of Rs.1,50,00,000/- from Vinam Finance Pvt. Ltd. was disallowed invoking section 68 of the Act. Further interest expenditure of Rs.17,84,744/- in respect of loans claimed by the assessee was also disallowed.

3.4 In assessment year 2016-17, the Assessing Officer made addition of Rs.1,95,00,000/- u/s 68 of the Act for treating the loans as accommodation entries from (i) Manyata Merchants Pvt. Ltd. (Rs.75,00,000/-), (ii) Safalta Vinimay Pvt. Ltd. (Rs.45,00,000/-) and (iii) Vinam Finance Pvt. Ltd. (Rs.75,00,000/-). The Assessing Officer also disallowed the interest of Rs.43,36,689/- claimed by the assessee as revenue expenditure in respect of these unsecured loans.

3.5 In assessment year 2017-18, the Assessing Officer disallowed loan of Rs.50,00,000/- received from Kirteshwari Vintrade Pvt. Ltd. invoking section 68 of the Act and disallowed interest of Rs.46,67,717/- claimed in respect of unsecured loans.

3.6 In assessment year 2018-19, the Assessing Officer made disallowance of Rs.34,03,144/- on account of inte