2014 (1) TMI 978

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.... of unexplained expenses based on paper seized during the course of search & seizure action. 3. A search and seizure action u/s. 132(1) of the Act was conducted in the case of the Acme Group and its group concerns, directors and related persons on 24.7.2008. Documents pertaining to the assessee were seized from the office premises of Acme Housing India Pvt. Ltd. Accordingly notice u/s. 153C was issued and served upon the assessee. 3.1. The assessee filed return of income in response to the said notice declaring total income at Rs. (-) 4,761/-. During the course of the assessment proceedings, the Assessing Officer referred to Page No. 90 of Annexure-A-1 to Panchnama seized from the office premises of Acme Housing India Pvt. Ltd. The AO....

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.... matter before the Ld. CIT(A). It was explained that the Acme Group has purchased the factory premises from Shah Malleable Castings Ltd. (SMCL) for a consideration of Rs. 5.86 crores on which it has incurred various expenses which are duly accounted in the books of account by the assessee. It was further explained that the loose seized papers which is the subject matter of addition might have been prepared mentioning the expenses incurred and further more expenses have to be estimated. It was explained that expenses have been incurred from financial year 2002-03 to 2006-07 which are duly recorded in the books of account of the assessee. Regarding the balance amount, the assessee contended that they are nothing but estimated figures which co....

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....Counsel for the assessee reiterated what has been submitted before the lower authorities. 7. We have carefully considered the rival submissions and perused the orders of the lower authorities and the relevant material evidence brought on record. We have also carefully perused the said seized documents. It is not in dispute that the seized document recorded total sum of Rs. 3,24,48,707/-. It is also not in dispute that entries pertaining to Rs. 2,74,43,707/- were found recorded in the books of account of the assessee which leaves the balance of Rs. 50,05,000/-. Except for disbelieving the assessee's contention that the sum of Rs. 50,05,000/- represents figures which are only estimated figures , the AO has not brought any other material ev....