2019 (11) TMI 457

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....seized Annexure-A (Exihibit-5). 2. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing." 2. The assessee is an individual and engaged in the business of finance broker and property broker. The assessee has not filed his return of income for the year under consideration U/s 139(1) of the Income Tax Act, 1961 (in short, the Act). There was a search and seizure action U/s 132 of the Act on 26/09/2012 at the residential premises of the assessee and survey U/s 133A of the Act at the business premises of the assessee. During the course of search and seizure action, cash of Rs. 6.00 lacs as well as other incriminating material were found. Incriminating material found during the search was mark....

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....kerage/commission charges of Rs. 20,000/-. 3. Before the Tribunal, the ld counsel for the assessee has referred the statements of the assessee and submitted that the assessee explained the nature of his business being broker in finance and property dealings. The A.O. has also not disputed the business of the assessee. He has also explained the documents found as Exihibit-5 page 13-14 of Annexure-A during his statement recorded. Thus, the ld counsel has submitted that part from question No. 18, no further query was raised by the department at the time of search or post search inquiries. The assessee made surrender of Rs. 30.00 lacs covering all the transactions recorded in the seized material including the transaction in question and there....

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....accepted that the document is written on 29/6/2012 by Shri Roshan Lal Sancheti to Shri Naresh Kumar Maheshwari and gives the details of both the parties. On the other hand, the A.O. has invoked the provisions of Section 292C of the Act and presumed the document of the assessee. Thus, the ld counsel has submitted that once the parties to the transactions are not in dispute then the income, if any, on account of the said transaction cannot be assessed in the hands of the assessee except the commission/brokerage income. The assessee is neither lender nor the borrower and engaged in the capacity of finance broker on commission basis, therefore, the addition made by the A.O. by invoking the provisions of Section 292C of the Act is not sustainabl....

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....The details of the documents at page 13 and 14 of Exihibit-5 of Annexure-A are as under: From perusal of these documents, it is manifest that these are prepared in respect of loan transaction of Rs. 20.00 lacs by one Shri Roshal Lal Sancheti from Shri Naresh Kumar Maheshwari. This fact is also accepted by the A.O. in the assessment order. Even the assessee explained these documents and nature of transaction in his statement recorded by the department in the post search enquiries and the relevant part of the statement is in question No. 18 is as under: It is not in dispute that the assessee surrendered a sum of Rs. 30.00 lacs on account of incriminating material found during the search, therefore, the transaction of loan between two inde....