TaxTMI 
TaxTMI 
2020 (1) TMI 1107
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.... 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned addition. 2.1 The Ld.CIT(A) has grievously erred in law and on facts in confirming the validity of proceedings as well as notice u/s.153A dated 19.11.2013 for A.Y.2013-14, though the conditions precedents were not fulfilled. 2.2 That in the facts and circumstances of the case as well as in law, the Ld.CIT(A) ought not to have upheld the validity of proceedings as well as notice u/s.153A dated 19.11.2013 for A.Y.2013-14. 3.1 The Ld.CIT(A) has grievously erred in law and on facts in confirming the addition as alleged suppressed purchase price of Rs. 2,02,56,330/- in respect of lands at village: Makarba. 3.2 That in the facts and circumstances of the case as well as in law, the Ld.CIT(A) ought not to have upheld the addition u/s.69C as alleged suppressed purchase price of Rs. 2,02,56,330- . 3.3 The Ld.CIT(A) has grievously erred in law and on facts in upholding the addition of Rs. 10 Lakhs u/s.69A. It is therefore, prayed that the addit....
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....ly as if such return were a return required to be furnished under section 139; (b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made and for the relevant assessment year or years : 3.3 As per the above clause the period of 6 years will be counted from immediately preceding the assessment year relevant to the previous year in which such search was conducted. 3.4 For example: if a search is conducted during the A.Y. 2010-11 then the A.Y. 2004-05 to 2009-10 will be subject to the proceedings under section 153A of the Act. In view of the above stated discussion, we note that the assessment year under consideration does not fall within the period as specified in clause (b) to section 153A(1) of the Act. 3.5 In addition to the above, it is also pertinent to note that the assessment for the year under consideration was completed under section 143(3) of the Act. As such, there were no proceedings initiated under section 153A of the Act for the year under consideration. Accordingly, we hold that there is no merit in the ground of app....
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....usiness which was kept at the residential premises. In this regard a detailed explanation has already been offered by his brother Shri Ramesh J. Desai who is managing the financial affairs of the entire group. ii. However, the AO disagreed with the submission of the assessee by observing that the documents were seized at the premises of the assessee. Hence, under the provision of section 292C of the Act, he would be considered as the owner of such documents. Therefore, the assessee is liable to explain the documents found during the course of search based on cogent materials/reasons. iii. Similarly, the AO also disagreed with the submission of the assessee regarding the cash found during the search proceedings by observing that the onus lies on the assessee to explain the source of money not fully disclosed in the books of accounts as per the provisions of section 69A of the Act. In view of the above the AO treated the sum of Rs. 2,02,56,330/- as unexplained expenditure under the provisions of section 69C of the Act and further treated the impugned cash of Rs. 10 lakhs as unexplained money under the provisions of section 69A of the Act. Aggrieved assessee preferred an a....
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....tement furnished during the assessment proceedings. 6.4 However, the learned CIT (A) rejected the contention of the assessee by observing as under: 8.1.1 I find that the appellant has himself given contradictory statements in his submission. At one place, he says that the figures pertain to some rough estimates of which he has no idea. At another place he claims that the entries in the loose papers under question pertain to expenditure incurred for land, legal expenses, drafting expenses, advocate fees, counseling expenses, consulting fees, NA expenses, litigation expenses, etc. At yet another part of the submission he states that the loose | papers do not belong to him. Thus it is evident that the appellant has no explanation to offer for the entries made in the seized loose papers referred to above. No documentary evidence has been furnished in support of his claim that the entries pertain to expenditure incurred on account of various expenses. It is a fact that the loose papers were found during the course of a search action at the appellant's residential premises. It is also a fact that he has stated that the entries pertain to expenses of various kinds. It is a....
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.... 10.1 Admittedly, the documents were found from the residential premise of the assessee and as per the provisions of section 292C of the Act it is presumed that such documents belong to the assessee. But the presumption under section 292C of the Act, is the rebuttable presumption. In this regard we draw guidance and support from the order of the Hon'ble Delhi High Court order in the case of PCIT vs. Delco India (P) Ltd. reported in 67 taxmann.com 357 relevant extract of order are as under: Section 292C, inter alia, provides that where any books of account or other documents are found in possession or control of any person in the course of search under section 132 or survey under section 133A, it may be presumed that such books or documents belong to such person. Undisputedly, such presumption is rebuttable. 10.2 We further note that the AO in his show cause notice dated 06-01-2015 has observed as under: "...(i) Certain incriminating documents seized as Sr. No.64 to 68 of Annexure A1 found and seized from the residence of Shri Rajeshbhai J. Desai. These papers indicate cash payments of Rs. 2,02,56,330/-. The noting on the said pages prima facie indicates paym....
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.... be read in association with the other materials before reaching to the conclusion that such seized material represent the income of the assessee. We also note that in the case of CBI v. V.C. Shukla 1998 taxmann.com 2155 (SC), the Hon'ble Apex Court has observed that loose sheets have been ruled out as of any evidentiary value. Loose sheets cannot be accounts books of a party. Even if it is taken as an informal accounting it is not the record of the assessee. Even assuming such entries as correct and authentic they cannot without independent evidence fix a liability upon a person. In that connection the court also referred to Section 9 of the Evidence Act and observed that even if such entries are admissible under the said provisions to support an inference about correctness of the entries still such entries would not suffice without supportive independent evidence. They have no probative value in the absence of some corroborative primary evidence of the reality of such transaction shown in the noting in such loose sheets of paper. Even entries in the books of account need corroboration before acting against the third party on the basis of any entry in the books of account of a per....