TaxTMI 
TaxTMI 
2014 (11) TMI 639
X X X X Extracts X X X X
X X X X Extracts X X X X
....r the sake of convenience. 2. Search and seizure operation under S.132 of the Income-tax Act, 1961 was conducted in the case of the assessee on 29.12.2008 and assessments were completed under S.143(3) read with S.153A for the assessment year 2008-09 and under S.143(3) for the assessment years 2009-10. The assessee filed returns of income for the assessment years 2008-09 and 2009-10, admitting the total incomes of Rs. 4,39,450 and Rs. 5,01,980 respectively. In the assessment completed for the assessment year 2008-09, the Assessing Officer estimated the income of the assessee from coal business and made an addition of Rs. 40,00,000 on protective basis. He also made an addition of Rs. 1,04,73,034, on account of unexplained cash credits. Simil....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... since income is taxable in the hands of the firm, in whose case the incriminating material was found, which stood unexplained. In the instant case, the information found in the possession of the assessee as such onus lies on it...." 5. However, the learned CIT(A) confirmed the additions made towards unexplained cash credits of Rs. 1,04,73,034 for the assessment year 2008-9 and Rs. 2,80,00,000 for the assessment year 2009-10. It was submitted by the learned Authorised Representative for the assessee before the CIT(A) that certain loose sheets belonging to the firm, M/s. Balaji Transport Agency were found and seized, wherein certain notings of the cash received and payments were noted. The amounts were adopted by the Revenue authorities, fr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tions made on the basis of loose sheets A/KCSR/RES/04, 05 and 06 are business transactions and the Tribunal has confirmed that loose sheets belong to the firm and coal business has been done by the firm. Hence, it was submitted that once it was established that loose sheets belonged to the firm, additions cannot be made on peak cash credit, which is the cash flow of the firm. It was also submitted that additions in the case of the firm were sustained by rejecting the books of account and income was estimated for the years under consideration. Hence, the additions in question need to be deleted. The CIT(A), however, rejected the contentions of the assessee and sustained the additions made for both the years, by the Assessing Officer towards ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ra 11.2, the assessee was in a confused state of mind and gave different statements on 28.1.2009, 5.2.2009, 23.2.2009 with regard to the query raised with respect to the amounts collected from various persons. Finally, the assessee has modified the above statements vide answer to the questionnaire on 20.9.2010 stating that entries appearing in the loose sheets are rough notings and are dumb material and the statements given at the time of search and post search period were given in a confused state of mind. The assessee has also filed copies of the seized documents in question being A/KCSR/RES/01; and A/KCSR/RES/03 at pages 7 to 40 and 41 to 53 respectively, of the paper-book filed before us. Most of those pages are either hand-written scri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al V/s. Asstt. Commissioner of Income-tax (146 TTJ 334). Even otherwise, the same documents were seized and relied upon by the Department in the case of M/s. Balaji Transport Agency. It is apt to refer at this stage to the relevant portion of the arguments of the Learned Departmental Representative before this Tribunal in the case of M/s. Balaji Transport Agency, Hyderabad, which appears in para 4.2 of the order of the Tribunal dated 2.8.2013 in ITA No.8999/Hyd/2012 and others in that case, on page 28 thereof, and read as follows- "4.2 The DR submitted that during the course of search, three scribbling pads were found and seized as annexure A/KCSR/RES/04-06. These Scribbling pads contain hand written details of daily account of cash receiv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aji Trading Agency, the said additions cannot be made in individual hands. We find that from the same set of documents seized during the search and seizure operations, it was considered by the Assessing Officer that an amount of Rs. 40,00,000 is to be protectively assessed in the hands of the assessee also. However, the CIT(A) deleted the addition of Rs. 40 lakhs made by the Assessing Officer on protective basis, in the hands of the assessee when the order of ITAT holding that addition is to be made on substantive basis in the hands of the firm, was produced before the CIT(A). The Assessing Officer has made both the additions, i.e Rs. 40 lakhs as income from coal business and addition of unexplained cash credits of Rs. 1,04,73,034. on the b....