IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI SUDHIR KUMAR, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.5886/Del/2024 (ASSESSMENT YEAR 2017-18)

ITA No.5879/Del/2024 (ASSESSMENT YEAR 2018-19)

Nirvaja Enterprises Private Asst. CIT, Limited, Central Circle-29, H.No.116 F/F, Vs. Delhi.

Village-Kotla, Mayur Vihar, Phase-1, Near Hukum Singh Dairy, Delhi.

PAN-AAECC9830H (Appellant) (Respondent)

Assessee by Shri Sudesh Garg, Adv.,Ms. Bhavya Garg, Adv.,Mr. Prince Bansal, CA Department by Shri Sanjay Kumar, CIT- DR Date of Hearing 16.09.2025 Date of Pronouncement 12.12.2025

O R D E R

PER MANISH AGARWAL, AM:

These two appeals are filed by the Assessee against the separate orders of the Ld. Commissioner of Income Tax (Appeals)-25, New Delhi, (‘the CIT(A)’ in short) both are dated 16.09.2025 passed u/s 250 of the Income Tax Act, 1961 in Appeals No. 10428/2016-17 and 10228/2017-18 against the assessment orders passed u/s

143(3) of the Act for Assessment Years 2017-18 and 2018-19 respectively.

2. Before us, both the parties have made submissions for AY 2017-18 and it is admitted that the issues are common in both the assessment years. Therefore, both the appeals are decided by a common order. First we take the assessee’s appeal in ITA No. 5886/Del/2024 for AY 2017-18.

ITA NO. 5886/Del/2024 (AY 2017-18)

3. Brief facts of the case are that assessee is a company and a search and seizure action was carried out in the case of Mr. Himanshu Verma group of cases on 13.04.2017. During the course of search and in post search investigations, it was found that Sh. Himanshu Verma is engaged in the business of providing accommodation entries through 200 shell companies, and the assessee company is one of these 200 shell companies managed and control by Sh. Himanshu Verma for providing accommodation entries in lieu of commission. Accordingly, in case of the assessee proceedings u/s 153C of the Act were initiated after recording the satisfaction note on 23.09.2019 for Assessment Years 2012-13 to 2018-19 including the year under appeal. Notice u/s 153C was issued on 24.09.2019, in response to which a return of income was filed on 05.02.2021 declaring total income at Rs.8,02,621/-. During the course of assessment proceedings, the AO observed that in the bank account of assessee, all the credit and debit entries appearing were with respect to bogus entries of loans which were transferred to/ received from various beneficiaries and, accordingly, the entire credit entries of Rs.23,05,25,612/- were held as accommodation entries provided on which assessee has earned commission. Accordingly, the addition of Rs.92,21,024/- being 4% of the total credit entries was assessee as unexplained income of the assessee. Besides, this based on the statement of Sh. Himanshu Verma wherein he has accepted transferring the assessee company in lieu of commission of 1% of the total capital and therefore, an addition of Rs.46,70,348/- being 1% of the total capital is added in the hands of the assessee, thus, the total addition of Rs.1,38,91,372/- was made.

4. In first appeal, the Ld. CIT(A) has dismissed the appeal of the assessee, both on legal as well as on factual aspects, therefore, the assessee is in appeal before the Tribunal by taking the following grounds of appeal:

“1. The Ld. CIT(A) has erred on facts and in law in confirming the assessment order dated 28.04.2021 passed by the Ld. AO which was barred by limitation as per the provisions of section 1538 of the Act.

2. The Ld. CIT(A) has erred on facts and in law in confirming the additions made by the AO in the assessment completed u/s 153C which were made without referring or relying or basing the same upon any seized incriminating document.

3. The Ld. CIT(A) has erred on facts and in law in dismissing the appellant's appeal by giving incorrect finding and vague reasons with regard to the grounds raised by the appellant against the initiation of the proceeding's u/s 153C of the Act by th