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(5) That for any other grounds with kind permission of your honour at the time of hearing of appeal."

3. Ground no.1, being general in nature, hence no separate adjudication is required.

4. Grounds no.2 & 3, relates to the addition made by the Assessing Officer on account of commission on turnover transaction.

5. The brief facts, as culled out from the assessment order is that a search action under section 132 of the Income Tax Act, 1961 ("the Act") was conducted at the residential premises of assessee on 26/07/2016. The return of income under section 139(1) of the Act was filed on 17/02/2012, declaring total income of ` 10,36,730. Intimation under section 143(1) of the Act was issued on 07/06/2012, accepting the returned income. Notice under section 153A of the Act was issued on 23/05/2017, in response to which the assessee filed his return of income on 28/04/2018, declaring an income of ` 10,36,726. The assessment order under section 143(3) r/w section 153A dated 26/12/2018, was passed assessing the total income at ` 83,04,726. The addition of ` 72,68,000, was made on account of alleged commission income. A survey action under section 133A of the Act was also carried out at the official premises of assessee i.e., M/s. SNJ & Associates, (a Partnership Firm in which Shri Sanjay Jain, who is a Chartered Accountant, is also a Partner) Shri Sanjay Dhanraj Jain ITA no.53, to 59/Nag./2024 situated at 1st Floor, Mangalam Icon, Ramnagar Square, Nagpur, by the Jt. Director of Income Tax (Inv.), Nagpur, on 26/07/2016. During the survey, an Excel Sheet, exhibited at Annexure B-2 at Page no.4, is found and impounded. According to the Assessing officer, the transactions mentioned in the excel sheet are turnover of the assessee and commission @0.25% has been received there on. The assessee furnished explanation in the assessment proceedings, vide letter dated 28/09/2018 and 26/11/2018. It is further noted by the Assessing Officer that a summons under section 131 of the Act was issued by the Investigation Wing to explain the nature of transaction in the impounded document to which the assessee explained that the impugned Excel Sheet pertains to M/s. Base Corporation Ltd. (BCL) for whom M/s. SNJ Associates, were Internal Auditor. It is further noted by the Assessing Officer that the assessee did not provide details as asked by the Investigation Wing. After considering the reply of the assessee, the Assessing Officer held that there was no mention of name of Base Corporation Ltd. while the name of Shri Sanjay Jain, is mentioned in the impounded Excel Sheet and further the assessee could not file any appointment letter / offer letter to substantiate that the assessee was Internal Auditor of the company. The Assessing Officer held that the claim of the assessee that the turnover mentioned in the Excel Sheet belongs to M/s. Base Corporation Ltd., is not acceptable. She further held that the words"@.25%" mentioned in the Excel Sheet is the commission earned by the assessee which has not been shown as income and consequently made addition to the income of the assessee.

We further draw your kind attention on Page 9 of the Assessment Order wherein the AO observed that no books of accounts or other documents relating to BCL were found at the business premises of M/s. SNJ & Associates thereby doubting the role as an Internal Auditor. Your goodself will appreciate that the books of accounts and documents in support thereof are maintained by such public limited companies in the electronic media in accounting software package and can be accessed from remote places without print outs being taken. Shri. Sanjay Jain had informed the authorities that he has visited many times to Bangalore for audit purposes. Working file prepared for Internal Audit was found during the course of Survey by Investigation Wing. The Shri Sanjay Dhanraj Jain ITA no.53, to 59/Nag./2024 working file found itself establishes the fact that the firm M/s. SNJ & Associates was professionally serving the company. We further draw your kind attention to page 9 of the Assessment Order wherein the AO has held that the transactions do not belong to BCL on the basis that the assessee is unable to establish role as Internal auditor because of non-availability of appointment letter and Internal Audit fees not received. In this regard, we draw your kind attention to the letter dated 26-11-2018 wherein the explanation was offered along with evidence. Although, the appointment letter could not be traced, however, the assessee produced copy of published accounts of BCL for the F.Y.2010-11 in which the name of the firm M/s. SNJ & Associates in which assessee is partner, is mentioned as an Internal Auditor. This, along with the Internal Audit file establishes the role of firm as Internal Auditor and the doubt raised is without any sound basis. As regards the F.Y.2009-10, F.Y.2011-12 and F.Y.2012-13, the Internal Audit was the help of conducted by M/s. Maheshwari Jain & Associates of Nagpur assessee. The reasons for non-receipt of Internal Audit fees also discussed in the letter dated 26-11-2018. The mention about audit fees outstanding could also be found in the impugned seized document. Thus, all these documents on record establishes the role of firm as Internal Auditors of BCL and also the fact that the transactions does not belong to the assessee but to BCL. (9) As regards to the Internal Audit Fees fixed at Rs.2,00,000/- per year, it was informed that the fees could not be recovered as the company BCL was unable to make the payment for the fact that it was under huge financial liability. The assessee had also provided finance to the aforesaid company. The recovery of finance became difficult and therefore the assessee recovered the amount by keeping himself associated with the group in some way or other. Full recovery of loan was made. However, neither the interest could be recovered nor the Internal Audit Fess was recovered. Reference of the same could be found in the impugned seized document itself. Therefore, the assessee could not show any receipts accruing or arising to him from BCL for the services provided as Internal Auditor.

Base Corporation Ltd. in the capacity of Internal Auditor and in this regard proof that M/s. SNJ & Associates is associated as Internal Auditor can be seen from the Audited Financial Statement in which name of his Firm is appearing as "Internal Auditor". Further, the nature of transactions in the Excel Sheet were duly explained with the help of documentary evidence such as Ledger Accounts and Bank Statements of the parties. He drew our attention to the letter furnished in the post survey proceedings enquiry before the ADIT, Investigation Wing, and objected to the observation of Assessing Officer that no details/reply were furnished before the Investigation Wing. The learned Authorised Representative further submitted that the turnover mentioned in the Excel Sheet was explained in the Ledger Account of Base Corporation Ltd. and various parties with whom aforesaid company had entered into the transaction of sale or purchase. The aforesaid documents were furnished before the Investigation Wing and also during the assessment proceedings and no falsity were pointed out in any of the document so submitted. The transactions between M/s. Base Corporation Ltd. and other parties were through banking channels which is not doubted. It was explained in detail, based on ledger account that the parties to the transactions were charging gross profit in each transaction and the assessee was entrusted with the work of verification of gross profit charged as well as the accounting of such transaction in the capacity of Internal Auditor. He drew our attention to the Shri Sanjay Dhanraj Jain ITA no.53, to 59/Nag./2024 individual entries in the Excel Sheet below the chart of turnover and explained that each and every entry shown as payment there in is found in the bank account of parties to whom such payment was made or received by M/s. Base Corporation Ltd. Further, the learned A.R. also pointed out the mention of Internal Audit fees recoverable in the impugned sheet which he submitted was not recovered. He vehemently contented that the Audited Financial Account of M/s. Base Corporation Ltd. for the period from the year 2006 to 2013 as well as the Ledger Account were furnished in the post survey proceedings before the Investigation Wing and during the assessment proceedings. Further, the address of the company was also furnished and is also available on the Audited Financial Statements. At no stage, the explanation based on such documents was found as false by any of the authorities. Finally, the learned A.R. concluded contending that addition cannot be made merely on the doubt in mind of the authorities and more so when there is no falsity found in the documents submitted in support of the explanation of impounded document.

9. Per-Contra, the learned Departmental Representative ("the learned D.R.") strongly relying upon the order passed by the Assessing Officer and the learned CIT(A), submitted that the dismissal of the assessee's appeal by the learned CIT(A) was after indicating detailed reasons, which do not call for any interference and in this view of the matter, the appeal filed by the assessee be dismissed.

10. We have given a thoughtful consideration to the arguments made by the rival parties and perused the material available on record. As already Shri Sanjay Dhanraj Jain ITA no.53, to 59/Nag./2024 mentioned elsewhere in this order that the assessee is a Chartered Accountant and is a partner in M/s. SNJ & Associates. It is noted from the assessment order and is undisputed that the document Annexure B-2, Page-4 was impounded during the survey proceedings at M/s. SNJ & Associates, situated at 1st Floor, Mangalam Icon, Ramnagar Square, Nagpur, by the Jt. Director of Income Tax (Inv.), Nagpur, on 26/07/2016, which is also found mentioned in the summons under section 131 of the Act dated 30/05/2016 issued by ADIT (Inv.), Unit-I, Nagpur, which is exhibited in the Paper Book Page-1. We find that the assessee has responded to the summons under section 131 and the notices issued in the assessment proceedings and explained the transaction/entries in the impounded document with the help of supporting documents. We refer to the reply dated 16/11/2016, furnished before the ADIT, Unit-I, Nagpur, (placed on record in the Paper Book Page- 14&15) which is also duly acknowledged in which the assessee has categorically mentioned that the sheet was impounded from the Internal Audit file of M/s. Base Corporation Ltd. and it was also stated that the firm was the Internal Auditor of BCL. The purpose of preparation of reconciliation was mentioned therein. Further, in Para-C of the letter, address of BCL was also provided and the copies of Balance Sheets of BCL filed with Registrar of Companies for the financial year 2006-07 to 2012-13 were also furnished. Thus, the assessee has furnished the reason for preparation of Excel Sheet by the firm. It is also mentioned by the Assessing Officer herself in the assessment order at Page-8 that "Further on verification of details from ITD application by Investigation Wing, the turnover of M/s. Base Corporation for the above financial year was 611.63 Cr." This figure of turnover of `611.63 Shri Sanjay Dhanraj Jain ITA no.53, to 59/Nag./2024 crore is also found mentioned in the Audited Profit and Loss Account which is placed on record in the Paper Book Page-28. This establishes on record that the Investigation Wing as well as the Assessing Officer was fully aware of the whereabouts of the BCL and the observation of the Assessing Officer that the address of BCL and other detail were not provided during investigation is contrary to their own finding. On perusal of the Audited Financial Statements, we find that the details of Board of Directors, Registered Office, Bankers, Statutory Auditor, Internal Auditor, Manufacturing Plant, etc., are available attached to the Audited Financial Statements. Further, we find that the Ledger Accounts of BCL which were submitted vide letter dated 28/09/2018 (reproduced in assessment order in Para-(e) at Page-6 of the assessment order) in the assessment proceedings in support of explanation of transaction in Excel Sheet also mentions the complete address of BCL. The Assessing Officer doubted whether the firm M/s. SNJ & Associates in which the assessee is Partner has conducted the Internal Audit in the absence of appointment letter. However, we find that the assessee categorically mentioned before the Investigation Wing about the documents and files relating to Internal Audit and we also find the name of the firm as "Internal Auditor" mentioned in the Audited Financial Statements. It is in this capacity of Partner who was looking after the assignment of Internal Audit of BCL that the name of assessee is appearing on impugned Excel Sheet. Thus, we find that the explanation by the assessee that they were conducting the Internal Audit of BCL and that the impugned Excel Sheet which was taken out from the Internal Audit file is prepared during the discharge of function as an Internal Auditor is established.