TaxTMI 
TaxTMI 
2015 (6) TMI 889
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....r the assessment years and amounts and the submissions are also common for all the appeals and therefore all the appeals can be heard together. We therefore proceed to dispose of all the appeals together for the sake of convenience and thus proceed with the facts in A.Y. 1999-2000. 3. The relevant facts as culled out from the material on record are as under. 4. Assessee is a Non-resident individual. A search was conducted u/s. 132 of the Act at the site office of J.P. construction where certain loose papers were seized. Annexure-A1 page 52 of the seized paper showed details of sarafi transaction carried out during the period from February 1996 to October 2003 and it was stated that the transaction related to Ms. Jigna P. Shah, the Ass....
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.... interest was worked out at 12%. A.O noted that that in reply to the query raised during the course of assessment proceedings, it was submitted by the Assessee that no interest has been charged by her but the submission of the Assesee was not found acceptable to the A.O. He therefore calculated interest income at 12% on the outstanding loan amount and worked out the interest income at Rs. 5,79,000/- and made addition of it. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who deleted the addition by holding as under:- Ground No.2, which is on the issue of interest having actually accrued or not is based on the following disputed inferences made by the department on the basis of the document and the statement ....
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....006 (page no.2, para.4 of of asstt. Order) "Column No.3- Interest is estimated interest working @ 12% on capital/investment, which is computed by her to say that she has loosed Rs. 24.23 lacs as interest." The above clearly show that interest was claimed to be calculated on the request of mediator. Therefore, it could not have been decided to have been paid when the amount was originally given. Further, when Shri Jigen Shah says that it is computed to show that she has lost 24.23 lacs as interest, it shows notional loss only because according to document some part of interest has also been paid (if the property of Rs. 40 lacs shown given has actually been given). This document is a third party document which is neither in the handwriting....
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....r, it appears that the AO has accepted the statement as it has neither brought house property income to tax nor consistent with the addition of cash payments u/s.69A he has made any addition of this payment in kind. Further interest accrued has been computed by the AO as if the house was not transferred (given). In these circumstances, the inference on the document as given by the assessee and the person from whom it has been recovered has to be taken to be true. Therefore, it is held that the interest was calculated to indicate the loss and to press settlement and is not proved to be actually accrued. The additions of accrued interest are therefore, directed to be deleted. 6. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is no....