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2. Briefly stated relevant facts of the case include that the assessee is an individual and one of the Directors of M/s. Parag Milk and Milk Products Pvt. Ltd. There was action u/s.132 of the Act on Parag group of cases on 04-02-2011. Accordingly, as per the due process of law, the assessments were completed u/s.153A of the Act. Before us, there is no issue relating to the incriminating material or non-abated assessments etc. The appeals pertain to the A.Yrs. 2007-08 to 2011-12. During the assessment, the AO made various additions and the details of returned income, additions made and the assessed income are tabulated as under:

4.2 However, in the First Appellate proceedings, the assessee submitted that some of its creditors also contributed towards the share capital and the same was subject matter of the assessee's application before the Income Tax Settlement Commission (ITSC) decided this issue.

Assessee offered the same as bogus share capital and the ITSC accepted the application and the matter became final. The said facts were brought to the notice of the CIT(A). Further, on the issue of loan creditors, assessee made a submission stating that the same creditors have offered certain investments in shares as unaccounted income of the assessee before the ITSC should not be decided against the assessee. Further, the group concerns of the assessee-Parag Milk Foods Pvt. Ltd. filed an application before the ITSC. The contribution in the form of share application money to M/s. Bhagyalaxmi Dairy Pvt. Ltd. were treated as not genuine and offered to the taxation. The contribution Devendra P. Shah A.Yrs. 2007-08 to 2011-12 made by the said creditors in the form of unsecured loans should not be treated on par with the same and hold that the loan creditors are bogus too. Stating that the assessee's application before ITSC is genuine one, Ld. AR submitted that the loan transactions are genuine. Therefore, the addition made by the AO is fully unsustainable. However, on evidences filed by the assessee, AO raised objections with regard to the inaccuracies with reference to signatures and the Permanent Account Numbers of the creditors.

Accordingly, the relevant grounds raised by the assessee are dismissed.

6. The third issue relates to unexplained expenditure on account of Elections. This issue is relevant for the A.Yrs. 2007-08 and 2010-11. Relevant facts include that the AO made addition of Rs.3.50 crores in the A.Y. 2007-08 and Rs.1,58,06,000/- for the A.Y. 2010-11. There was search and seizure action on the assessee u/s.132 of the Act on 04-02- 2011. During the search, certain papers were seized from the office Devendra P. Shah A.Yrs. 2007-08 to 2011-12 premises of M/s. Parag Milk and Milk Products Pvt. Ltd. Analysis of the writings on the said papers revealed that the same pertains to the details of the expenditure incurred during the elections of Zilla Parishad and Panchayat. It appears that the assessee incurred the said expenditure on behalf of the candidates who belong to the National Congress Party (NCP) contesting from Ambegaon Constituency of Zunnar block. There was recording of statement on oath from Shri Bangar, Accountant of the assessee. According to his statement Rs.3.50 crores was spent in cash (Para No. 2.2.5 of the order of CIT(A) and Para 5 of the assessment order). In response to Question No.6, Mr. Bangar relying on the summary sheet, stated that the total expenditure on the said elections amounts to Rs.4,03,95,768/-. On the said papers, cash receivable and received from Dilip A. Shah in cash total to Rs.3.50 crores. When the question was raised about the source of this cash receivable and received assessee did not have explanation. Accordingly, the AO treated the same as unexplained expenditure u/s.69C of the Act in his hands. At that point of time, application before the ITSC was not finalized. Therefore, the AO invoked the provisions of section 69C of the Act and made addition of Rs.3.50 crores. Contents of Para No.5 of the assessment order are relevant.

4.7 On final settlement a further sum of Rs.4 crores was admitted as contributed by the group.
4.8 Therefore, no addition is called for in the hands of the assessee."

From the above, it is evident that the total addition made in the assessee's case amounts to Rs.5.12 crores involving 3 assessment years and the prayer of the assessee is that the above addition stands covered by the disclosure of Rs.14 crores given in the entire group case of Parag Milk and Milk products Pvt. Ltd.