TaxTMI 
TaxTMI 
2019 (10) TMI 1120
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.... the assessee is an individual and earns income as civil contractor and share of profits from partnership firms. Assessee is a member of Regal Home groups and is partner in some of the groups concerns which also includes Regal Samarth Construction Company and Regal Samarth Krishna Builders. Search u/s 132 of the Act was carried out on 12.8.2014 at the Regal Homes groups and associated concerns/ business associates. Assessee was also subject to search. In the search various incriminating materials were found and seized. One of the seized document namely LPS-1 page 1 to 8 contained some information about the assessee. In compliance to notice u/s 153A of the Act assessee filed return of income for Assessment Year 2009-10 to 2015-16. Instant appeal relates to Assessment Year 2013-14 for which the assessee declared income of Rs. 4,06,160/-. In the seized document there was an account in the name of Mr. Mazumdar i.e. the assessee in which certain transactions were appearing on the left hand/ debit side and right hand/credit side. When the assessee was confronted by the Ld. A.O it was submitted that the amount of Rs. 62,60,000/- appearing in the left side is towards capital introduced....
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.... there exists a nexus between the amount mentioned on the loose paper and project chitrakcot. Further, appellant failed to produce any material evidence in support of his claim neither during assessment proceedings nor at the time of appellate proceedings. The working in the loose paper contains total land cost along with percentage and share of each partner and the amount received from each partner through cash and cheque has been mentioned. The loose paper has been found from the premises of Shri KL Shsrma who is one of the partner in the said project. The simultaneous searches have been carried out at the premises of the appellant and Shri KL Sharma on the ground that both are common partners in the firms and there is every likely hood that paper belonging to one person might be found at premises of other person. The entries in these papers are related to land purchased where the appellant is one of the partner. The page 4 of loose paper is ledger account of appellant whereas it has been written as "85,00,000/- to be taken from chitrakoet", Chitrakoot is the name of the project, run by the firm M/s Regal Samarth Construction company in which appellant is a partner, The details....
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....ssessee that these loose papers have been found at the premises of the third party and as such they are not related to the assessee. Under these circumstances the assessee is unable to explain the same. The copies of the loose papers have been reproduced in the assessment order from page 4 to 6. At page 5 the account of S.S Yadav has been mentioned in which the following amounts have been mentioned with the remark Mujumdarji-vale Rs. 60,00,qOOI- and Rs. 2,60,000/-- At Page 6 of the assessment order the following amounts have been mentioned: Rs. 60,00,000/-- Cash + Ch Rs. 85,00,000/-- Chitrakut se lena Rs. 2,60,000/-- Ch boundary W ---------------- Rs. 62,60,000/-- Rs. 85,00,000/-- Rs. 22,40,000/- balance to be taken On the basis of these loose papers which contain the name of the assessee the additions have been made in para 9.7 of Rs. 87,60,000/- on the following basis. Rs. 32,60,000/- unaccounted investment ( Rs. 62,60,000/- minus Rs. 30,00,000/- which is paid by cheque) Rs. 55,00,000/-- Investment in the firm M/s Regal Samarth Krishna Builders Rs. 85,00,000/- as per seized documents minus Rs. 30,00,000/-- which is accounted investment. In appeal the Ld. CIT....
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....g to assessee, Ld. Counsel for the assessee placed reliance on the judgment of jurisdictional High Court in the case of Principal CIT-1 V/s Shri Pukhraj Soni ITA No.53 of 2017 dated 6.2.2019. 8. Per contra Ld. Departmental Representative vehemently argued supporting the findings of both the lower authorities and also submitted that the alleged seized material cannot be claimed by the assessee as not related to him since some part of the seized document pertaining to assessee contains the transactions which were duly accounted in the regular books of accounts maintained by the assessee. She further contended that the judgment of jurisdictional High Court in the case of Principal CIT-1 V/s Shri Pukhraj Soni (supra) is not be applicable on the facts of the instant case. 9. We have heard rival contentions and perused the records placed before us. The assessee's sole grievance is on account of addition for unaccounted investment at Rs. 86,60,000/- made by the Ld. A.O and duly confirmed by the Ld. CIT(A). The assessee is a part of Regal Homes group which was subject to search u/s 132 of the Act on 12.8.14. Various documents were seized from the business concerns subject to search. In o....
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.... concern Regal Samarth Krishna Builders on 20.10.11 which was running another project named "Triveni Heights". At Page No. 13 to 21 of paper book filed on 13.3.2019, copies of capital account of the assessee in the above stated partnership firms are placed. On perusal of the same we find that in the firm Regal Samarth Construction Company the assessee has introduced capital of Rs. 30,00,000/- through cheque during financial year 2012-13 and similarly in Regal Samarth Construction Company also assessee being 30% partner has introduced capital by cheque/cash of Rs. 30,00,000/-. So there remains no dispute that the amount of Rs. 60,00,000/- which is appearing in the seized material, stands duly explained with the capital accounts of the partnership firms and supports the contention of Ld. Counsel for the assessee that Rs. 60,00,000/- is duly accounted for in the books of accounts. Remaining amount of Rs. 2,60,000/- have also been paid by cheque as appearing in the seized document, thus the figure of Rs. 2,60,000/- also stands duly explained by the assessee. 13. Now as far as amount of Rs. 85,00,000/- appearing on the right hand side of the account appearing in seized document with t....