TaxTMI 
TaxTMI 
2015 (9) TMI 62
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....s added u/s. 158BC of the Act. The case file reveals that the original assessee has expired. Case called twice. The deceased assessee's legal representative stands served through an RPAD notice. None has come present. We proceed ex-parte accordingly against the respondent/assessee's legal representative. 3. The original assessee was engaged in the business of metals scrap trading. The department conducted a search in his case on 27-02- 1997 leading to seizure of alleged incriminating material. The Assessing Officer completed a block assessment on 30-03-1999 inter alia adding a sum of Rs. 31,53,217/- introduced in the family business and an amount of Rs. 45 lacs paid/received by the family. The CIT(A) deleted the same in his order dated 27-....
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....f the Revenue is set aside to the file of the Assessing Officer." 4. The Assessing Officer took up consequential proceedings. He sought to add the impugned sum of Rs. 20 lacs being unaccounted payment made to Shri Kishorebhai. He passed consequential assessment order on 13-10-2010 recording assessee's failure in filing response. The Assessing Authority would refer to earlier assessment order, assessee's statement recorded during search and observed on the issue of total unaccounted investment of Rs. 65 lacs that a sum of Rs. 25 lacs stood paid about a year before search in installment of Rs. 5 lacs each, 10 shops of Rs. 2 lacs each had been given for Rs. 20 lacs and the balance sum of Rs. 20 lacs was yet to be paid. He quoted assessee's c....
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..... 20,00,000/- i.e. the difference between Rs. 65,00,000 (-) Rs. 45,00,000 (Rs. 25,00,000 + shops valued at Rs. 20,00,000) claimed to be payable on the date of search, has been added on the ground that, Annexure B-3, of the Panchnama was found and seized during the course of search from the premises of the deceased appellant on 27-02-1997 and page nos. 6 to 8 of the same show that amount of Rs. 31,53,217/- has been introduced in cash by Lakhani Group in M/s. R.H. Patel & Co. and out of the same, Rs. 45,00,000/- had already been disclosed by both Group. The Assessing Officer also found that some entries on the above pages were by way of cheques and inflected in the books of accounts of M/s. R.H. Patel & Co. and as a matter of normal implicati....
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....Rs. 45,00,000/- was paid by way of cash payment of Rs. 25,00,000/- and value of shops at Rs. 20,00,000/-, and no other amount remained to be paid. In reply to a question as to whether Rs. 20,00,000/-,' which had to be paid by the appellant, up to December 1997 to Shri Kishorbhai Naik, was for transaction of petrol pump, Shri Anwarbhai Lakhani replied that Rs. 20,00,000/- had to be brought by the appellant, as 'working capital up to December 1997 and the same was not to be paid for transaction of petrol pump. Further, in reply to a question as to whether he was in the knowledge of transaction of Rs. 65,00,000/-, Shri Anwarbhai Lakhani in his statement dated 27-02-1997, said that he did not have any such personal knowledge. 8.2.3. S....
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...., record entries of Rs. 31,53,2.17/-, and, has held that the said amount was towards taking over 67% share in the above firm and the amount of Rs. 31,53,217/- included cash payment of Rs. 25,00,000/- made in installment of Rs. 5,00,000/- each and the balance-amount of Rs. 6,53,217/- was payment made towards the remaining amount of Rs. 20,00,000/-. The Assessing Officer, therefore, on the basis of the said document further held that the entire amount of 20,00,000/- which was stated to be payable, had actually been paid in cash before the date of search, and added the same as unaccounted income of the appellant. 8.3.2. I, therefore, find that even if the finding of the Assessing Officer that out of the balance amount of Rs. 20,00,000/- stat....
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....ssing Officer has also disregarded the fact that entries of the above amount of Rs. 31,53,217/- also contained amount representing sale of petrol & diesel made by R H Patel & Co. of which certain entries tallied with the regular books of accounts and the balance were disclosed by M/s. R H Patel & Co. 8.3.5. In view of the above discussion, 1 do not find any justification for making the addition of Rs. 20,00,000/-, as unaccounted income of the appellant on the ground that the said amount, which had been stated to be payable on the date, of search, has also been paid in cash prior to the date of search. The above addition has thus been made without any documentary or oral evidence. I, therefore, delete the same. In respect of the remaining ....