आयकर अपीलीय अधिकरण, हदै राबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad Before Shri Manjunatha G., Accountant Member and Shri K.Narasimha Chary, Judicial Member आ.अपी.सं /ITA No.81/Hyd/2021 & 82/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2015-16 & 2016-17)

Asst.Commissioner of Vs. S.V.Multi Logitech Income Tax Private Ltd.

Central Circle-3(4) Secunderabad Hyderabad [PAN :AASCS7131D]

(Appellant) (Respondent)

निर्धाररती द्वधरध/Assessee by: Shri P.Murali Mohan Rao,AR रधजस् व द्वधरध/Revenue by: Shri Srinath Sadanala, DR सुिवधई की तधरीख/Date of Hearing: 25/11/2024 घोर्णध की तधरीख/Date of 18/02/2025 Pronouncement:

/ ORDER आदेश PER. MANJUNATHA G., A.M:

These appeals filed by the Revenue are directed against order dated 04.09.2020 of the Commissioner of Income Tax (Appeals) [“Ld.CIT(A)”]-11, Hyderabad pertaining to A.Y.2015-16, and 2016-17. Since, facts are identical and issues are common, for the sake of convenience, the appeals filed by the Revenue are being heard together and are being disposed off, by this common order.

I.T.A.81/Hyd/2021, A.Y.2015-16

The Revenue has raised the following grounds of appeal :

3. The brief facts of the case are that the assessee company M/s S.V.Multi Logitech Pvt.Ltd., is engaged in the business of logistics parks and infrastructure projects, filed its return of income for the A.Y.2015-16 on 10.10.2015, declaring total income of Rs.Nil, which was processed u/s 143(1) of the Income Tax Act, 1961 (“the Act”). A search and seizure operation u/s 132 of the Act was conducted in the case of Ajaz Farooqi and his related concerns on 04.07.2017. During the course of search at the residential premises of Ajaz Farooqi, certain incriminating material was found and seized vide Annexure A/AF/01. During the course of search assessment proceedings in the case of Ajaz Farooqi, the seized material was verified and found that the material seized pertains to M/s S.V.Multi Logitech Pvt.Ltd. and has a bearing on the total income for the year under consideration and therefore, the Assessing Officer of the searched person has recorded satisfaction u/s 153A of the Income Tax Act, 1961 (“the Act”) and forwarded the same to the assessee to file return of income. The Assessing Officer issued notice u/s 153A of the Act and found that the assessee company has received advances / investments from M/s Surbhi Mercantile Pvt.Ltd., Delhi and accordingly, called upon the assessee to file return of income. In response to the notice issued u/s 153A of the Act, the assessee filed its return of income on 29.06.2018 by admitting total income of Rs.Nil/-. The assessment has been completed u/s 143(3) r.w.s. 153A and assessed total income at Rs.3,05,82,500/-

4. The first issue that came up for our consideration is addition of Rs.1,00,00,000/- u/s 68 of the Act. During the course of assessment proceedings, the Assessing Officer noticed that Shri Ajaz Farooqi and his associated companies has received loans / advances / investments to the tune of Rs.65,57,75,000/- from various Delhi based companies during the F.Y.2010-11 to 2016-17, out of which investments to the tune of Rs.20,27,50,000/- was received from Surbhi Mercantile Pvt.Ltd. During the financial year, relevant to the assessment year 2015-16, the assessee company has received investment / advance of Rs.1,00,00,000/- into its State Bank of India account from M/s Surbhi Mercantile Pvt. Ltd. based in Delhi. In order to verify the amount of advance / investment received from Delhi based company, the Assessing Officer called upon the assessee to file relevant evidences and also prove identity, credit worthiness and genuineness of the transaction. In response, the assessee company filed copy of MOU between M/s Surbhi Mercantile Pvt. Ltd. and the assessee and claimed that the above company agreed to invest in development project and for this purpose remitted an amount of Rs.1,00,00,000/-. During the course of post search operation, enquiries were conducted at Delhi to verify t

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