TaxTMI 
TaxTMI 
2016 (3) TMI 1014
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....r the demise of her husband. The revenue carried out search and seizure operations in the hands of the assessee on 05-10-2007 consequent to the search operations conducted in the case of Mukesh Choksey group. During the course of search operations, the assessee made a disclosure of Rs. 60.00 lakhs, which was later enhanced to Rs. 72.11 lakhs and the same was allocated between various years. However, at the time of filing of return of income, the assessee prepared a profit and loss account for each of the years and offered income as per the same, which was found to be less than the revised additional income declared by the assessee. Hence for assessment years 2003-04 to 2007-08, the assessing officer added the difference between the revised amount offered in each of the years and the income returned by the assessee in the respective years. 3. In assessment year 2001-02, the assessing officer has made the addition on the basis of a loose sheet found during the course of search and also added the bad debts claim put forth by the assessee during the course of assessment proceedings. The Ld CIT(A) confirmed the addition made on the basis of loose sheet, but deleted the addition relat....
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.... The interest figure is Rs. 67,080/- which was to be received as per details on page 4A. (ii) Again figure of Rs. 1,08,000/- is the interest on Rs. 12 lacs for 6 months up to Dec.2000 which is also as per details on page 4A. (iii) Further there is an interest of Rs. 12 lacs from January to December is Rs. 2,16,000/- which is for the period from 1.1.2001 to 31.12.2001. Only the months have been written, year has not been stated. Since the amount of interest on Rs. 12 lacs which have been earlier and interest upto Dec.2000 has been taken into account, so the interest figure Rs. 2,16,000/- is for 12 months will be for subsequent period only i.e.1.1.01 to 31.12.01. Similarly an interest figure of Rs. 1,20,000/- on Rs. 10 lacs from January to Dec. is for the period from 1.1.2001 to 31.12.2001. Thus total figure of Rs. 6.25 lacs contains the interest figure period from 1.1.01 to 31.12.2001 plus interest for 2000 ending. Then in no way we presume that the amount was received during F. Y.2000-01 because no party will pay advance interest. Rs. 6.25 lacs was the amount due to be received. Further as no interest was received during FY 2000-01, so the same cannot be tr....
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....n 26/11/08 has stated that all efforts are being made to trace out Chhotu and he will be produced before the undersigned as soon as the person is traced out. Summons u/s 131 of the I.T.Act,1961 were issued to Manoj to attend personally. However, the summons were returned unserved since the assessee had left the place mentioned in the notice. Hence the genuineness of the aforesaid transactions could not be verified. 5.3 In view of the above discussion and findings, the addition which has resulted is as under: 7. We heard the rival contentions on this issue and perused the record. It is pertinent to note that the assessee is accepting the loan transactions noted down in the loose paper, but the difference between the parties arises with regard to the interpretation of the same. The contents of the loose paper are highlighted by us in bold in paragraph 6 supra. First we shall examine the addition relating to interest income. The assessee is not disputing the addition of following interest amounts:- 25.7.2000 to 30.3.2001 1,14,750 On 10 lakhs from April 2000 to December 2000 - 67,080 On 12 lakhs from July 2000 to December 2000 - 1,08,000 2,89,....
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....that she was in possession of the above amount prior to 1.4.2000 and hence the same cannot be considered to the investment made during this year. In this regard, the Ld A.R submitted that the entries noted down in the loose paper relates to the transaction with the broker named Chottu and various noting made clearly show that the said broker is giving details from 1.4.2000 onwards. The Ld A.R invited our attention to certain noting relating to receipt of Rs. 2.00 lakhs on 6.6.2000 and deduction of Rs. 1,08,000/- from this amount. 10. On the contrary, the ld D.R submitted that the entries found in the loose papers show that the amount of Rs. 22.00 lakhs has been advanced only during the year under consideration. 11. We have heard the parties on this issue and carefully perused the record. As observed by us in the earlier paragraphs, the question before us is about the interpretation of the entries found noted in the loose paper. It is also a fact that the entries made in the loose paper have not been corroborated with any other material. There is no dispute that the money lending business was carried on by assessee's spouse and it has been inherited by the assessee. Further, t....
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....ition when he rejected the claim put forth before him during the assessment proceedings. Hence, on merits also, the appeal of the revenue is required to be dismissed. We order accordingly. 15. The only issue urged in the appeals filed by the assessee for assessment years 2003-04 to 2006-07, which is also common in all the years, relates to the addition of the difference between the income surrendered by the assessee through revised workings and the income returned by the assessee, which is tabulated below:- Asst. Year Addl. Income Addl. Income Difference added offered in search offered in ROI. by A.O 2003-04 3,05,000 1,35,100 1,70,000 2004-05 7,12,500 1,70,500 5,42,000 2005-06 9,22,000 1,67,217 7,54,783 2006-07 5,69,200 1,81,326 3,87,874 16. Before the AO, the assessee submitted that the additional income at a higher figure was offered out of confusion and later on, when the assessee prepared the profit and loss account on the basis of documents found during the course of search, it came to light that she has offered higher income than what was actually earned. However, the said contentio....
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....loyed through out the year. Most of all, the Ld CIT(A) has also not found fault with the profit and loss account prepared by the assessee. Accordingly, we are of the view that the Ld CIT(A) was not justified in confirming the addition made by the AO on this issue in the assessment years 2003-04 to 2006-07. Accordingly, we set aside the order of Ld CIT(A) and direct the AO to delete the impugned addition made in the assessment years referred above. 19. Now we shall take up the appeal filed by the assessee for AY 2007-08, wherein following issues are being contested:- (a) The addition of interest income on the basis of disclosure made u/s 132(4) of the Act. (b) Assessment of gift amount as income of the assessee. 20. The first issue is identical to the issue considered in AY 2003-04 to 2006-07. The assessing officer assessed the difference between the amount disclosed by the assessee and the income returned by the assessee. The difference so assessed was Rs. 11,10,813/-. The Ld CIT(A), however, enhanced the same to Rs. 14,60,000/- by estimating the income on loans and advances at 18%. For the reasons discussed in the preceding paragraphs while adjudicat....
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....appropriated a part of sale consideration to settle the loan taken by him from State Bank of India. He further submitted that the assessee also lodged claim over the sale proceeds, since the husband of the assessee is also one of the legal heirs of the property. Accordingly, on a family settlement, the assessee received a sum of Rs. 28.50 lakhs from her brother in law and the same was shown as gift in the cash book. The Ld A.R submitted that these details are available from the seized records itself. Accordingly, the Ld A.R submitted that this amount is a capital receipt and hence not liable to tax. 23. On the contrary, the Ld D.R placed strong reliance on the order of Ld CIT(A). 24. We heard the parties on this issue. There is no dispute with regard to the fact that the details relating to the money transaction in respect of Lokahandwala flat is available in seized records. The said paper is titled as "Lokh. Flat". The entries noted down in the left hand side shows the receipt of Rs. 61.00 lakhs by way of cash and cheques. The entries noted in the right hand side shows disbursement of amounts to the tune of Rs. 32.67 lakhs and balance amount of Rs. 28.32 lakhs was sho....