IN INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR BEFORE:SHRI BHAGCHAND, AM & SHRI LALIET KUMAR, JM ITA No. 578/JP/2014 Assessment Year : 2008-09 DCIT cuke M/s. Shakun Advertising (P) Ltd. Central Circle- 2 Vs. B-3, Girraj Mansion, Ist Floor, New Jaipur Colony, Jaipur PAN/GIR No.: AABCS 4742 H Appellant Respondent Revenue by: Shri Kalika Singh, CIT -DR Assessee by : Shri S.L. Poddar, Advocate Date of Hearing : 03/10/2016 Date of Pronouncement : 3/10/2016 ORDER PER BHAGCHAND, AM Revenue has filed appeal against order of ld. CIT(A)-Central, Jaipur dated 16-06-2014 for assessment year 2008-09 raising therein following grounds of appeal. 1. On facts and in circumstances of case, ld. CIT(A), Jaipur has erred in deleting addition of Rs. 57.00 lacs made on account of bogus expenses while appreciating credible evidence seized during search and categorical admission of assessee made u/s 132(4) of I.T. Act. 2 ITA No. 578/JP/2014 DCIT, Central Circle- 2,Jaipur vs. M/s. Shakun Advertising (P) Ltd. . 2. On facts and in circumstances of case, ld. CIT(A), Jaipur has erred in relying upon ITAT order in A.Y. 2007-08 ignoring that ITAT order has not been accepted by Department but has been challenged before Hon'ble High Court (note enclosed). 2.1 At outset of hearing, ld. AR of assessee prayed that similar issue has already been decided by Coordinate Bench vide its order dated 15-06-2016 in assessee's own case (ITA No. 352/JP/2013) for assessment year 2009-10, Hence, issue in question of assessee is covered by decision of Coordinate Bench in assessee's own case (supra). 2.2 It is also noted that ld. CIT(A) has deleted addition of assessee for assessment year 2008-09 by observing as under:- 4.3 I have carefully perused order of AO and submissions of A.R. of appellant alongwith order of Hon'ble I.T. Act Jaipur Bench in case of appellant for A.Y. 2007-08 ITA No. 821/JP/2012 dated 13- 03-2014. Hon'ble ITAT on identical facts has adjudicated in favour of appellant by observing that books of account were audited u/s 44AB. In audit report, CA has not pointed out any serious deficiency or defect. During course of assessment proceedings, all books of account were produced before AO and examined by him. It was also observed that since appellant disclosed higher rate of G.P. during year under consideration there was no justification for making further addition. 3 ITA No. 578/JP/2014 DCIT, Central Circle- 2,Jaipur vs. M/s. Shakun Advertising (P) Ltd. . On perusal of order of AO, it is found that adhoc addition of Rs. 57 lakhs has been made on identical facts ad adjudicated upon by Hon'ble ITAT in appellant s case for A.Y. 2007-08. I find facts are covered by above mentioned finding of Hon'ble ITAT in favour of appellant. Therefore, addition of Rs. 57 lakhs is deleted. 2.3 It is further noted that Coordinate Bench had taken into consideration such type of issue raised by Revenue in its appeal (supra) wherein appeal of Revenue was dismissed by Coordinate Bench vide its order dated 15-06-2016 in ITA No. 352/JP/2013 for assessment year 2009-10 by observing as under:- 6. We have heard rival contentions of both parties and perused material available on record. During course of search, statement U/s 132(4) was recorded by authorized officers. Shri Ballabh Das Maheshwari had admitted additional income at Rs. 2.97 crores on basis of loose papers and documents found at business premises at Delhi, Mumbai and Ahmadabad as he was not able to get verification from regular books of account from family members and business concerns. However, in return, he has admitted additional income of Rs. 1.00 crore, which includes disclosure of Rs. 75 lacs on account of unaccounted investment in house property constructed at 4-5, Shubham Enclave, C-Scheme, Jaipur. addition made by Assessing Officer on basis of statement recorded U/s 132(4) are not on basis of incriminating documents found during course of search, as such no reference has been made by Assessing Officer in assessment order. He simply gave general observation of group that during course of search, various assets/books of account were found and seized as per annexure prepared during course of search. Thereafter, he analysed expenses under head consultancy charges, sales promotion, travelling expenses, purchases material for advertisement and also considered not maintaining stock register and commission payment not verifiable but no specific bills vouchers have been referred by Assessing Officer that expenses claimed and commission paid is 4 ITA No. 578/JP/2014 DCIT, Central Circle- 2,Jaipur vs. M/s. Shakun Advertising (P) Ltd. . bogus on basis of seized material. Whatever addition made by Assessing Officer on basis of statement recorded during course of search U/s 132(4) which have evidentiary value but it is rebuttable. CBDT also issued instruction on forced disclosure during survey and search, which has been referred by ld CIT(A) wherein it has clearly directed by it to authorized officer, no attempt should be made to obtain confession, which is not based on incriminating document/assets found during course of search. ld DR has not controverted findings given by ld CIT(A). case laws referred by ld CIT(A) are squarely applicable on facts and circumstances of assessee s case. Accordingly, we uphold order of ld CIT(A) and dismiss revenue s appeal. 2.4 During course of hearing, ld. DR also mentioned that this issue is covered by ITAT, Jaipur Bench decisions in various years. However, these orders have been challenged by Department in Hon'ble High Court of Rajasthan. 2.5 We have heard rival contentions and perused materials available on record. It is noted that ld. CIT(A) had followed decision of ITAT Coordinate Bench dated 13-03-2014 in ITA No. 821/JP/2012 for assessment year 2007-08 and deleted addition of Rs. 57 lakhs. It is also noted that such type of issue had been taken into consideration by ITAT Jaipur Bench vide its order dated 15-06-2016 for A.Y. 2009-10 in assessee's own case (supra) wherein Coordinate Bench had dismissed appeal of Revenue. Therefore, respectfully, 5 ITA No. 578/JP/2014 DCIT, Central Circle- 2,Jaipur vs. M/s. Shakun Advertising (P) Ltd. . following decisions in various years of Coordinate Bench (supra), appeal of Revenue is dismissed. 3.0 In result, appeal of Revenue is dismissed. Order pronounced in open court on 03/10/2016. Sd/- Sd/- (Laliet Kumar) (Bhagchand) Judicial Member Accountant Member Jaipur Dated:- 03 /10/ 2016 Copy of order forwarded to: s 1. Appellant- DCIT, Central Circle- 2, Jaipur 2. Respondent- M/s. Shakun Advertising (P) Ltd. , Jaipur 3. CIT(A). 4. CIT, 5. DR, ITAT, Jaipur 6. Guard File (ITA No. 578/JP/2014) By order, Assistant. Registrar DCIT Central Circle- 2, Jaipur v. M/s. Shakun Advertising (P) Ltd