2013 (2) TMI 576

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.... [A] Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT(A) deleting the addition of Rs.12 lakhs made on the basis of signed cheques and hundis found during the course of search action? [B] Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT(A) deleting the addition of Rs.1,35,928/- made on account of interest on loan? [C] Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT(A) deleting the addition of Rs.41 lakhs being entries mentioned on seized documents? 2. Heard learned senior counsel Mr.Manish Bhatt appearing for the Revenue and with his assistance examined the material on record placed bef....

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....tating that the addition of Rs.12 lacs was made only on the basis of presumption on the ground that the cheques were received on cash loan advances to Shri Rakesh Patel . Tribunal also held that there was no corroborative material for sustaining such presumption. This issue is purely factual in nature. Tribunal and CIT(Appeals) both have concurrently held in favour of respondent. In absence of any relevant material on record, when they found that the addition was made purely on the basis of surmises and conjectures , this issue requires no interference. 7. Second question pertains to addition of Rs.1,35,928/- made on account of interest on loan. As the cheque issued by one Shri Archit Shah was to the tune of Rs.13,50,000/- against the de....

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....was received by the assessee against the said cheques. It is also not in dispute that the recovery of principal amount of Rs.12,14,072/- was itself doubtful because fo the above dishonoring of the cheques. In the above circumstances, it cannot be held that any real income got accrued to the assessee or received by the assessee in respect of the said dishonored cheque of Rs.13,50,000/- . It is an establish position of law, even when the assessee maintains mercantile system of account that what is assessable under the income tax act is real income and not any notional income. On the above facts, we find that the department could not bring on record any material to show that the assessee actually received interest of Rs.1,35,928/- at any po....