TaxTMI 
TaxTMI 
2020 (1) TMI 1107
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....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 addition of Rs. 2,02,56,330/- and Rs. 10 Lakhs and validity u/s.153A(1) upheld by the CIT(A) may kindly be dele....
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....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 appeal raised by the assessee. Hence, the grounds of appeal of the assessee are dismissed. 4. The 2nd issue raised by the assessee in ground No. ....
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....up. 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 appeal to the learned CIT (A). 6. The assessee before the learned CIT (A) regarding the seized documents submitted that that the noting found during the course of search is nothing but the rough estimate and have n....
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....s 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 also seen that the appellant has not given any explanation or evidence for this expenditure. Considering these facts, 1 am of the view that the A.O was justified in making the addition of Rs. 2,02,56,330/-, and the same is confirmed. Ground of appeal No 4 is dismissed. XXXXXXXXXXXXXXXXXXXXX....
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.... 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 payment of speed money/ bribe money relating to revenue authorities. For example at page number 66 of these lose papers reflects payment of Rs. 60,14,030/- made in connection with conversion of land from agriculture to NA and particular survey no. and name of village is also mentioned. These amounts appear to be in the nature speed mo....
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....ts 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 person. 10.6 Any presumption of transaction on some vague, tenuous and dubious entries in a sheet of paper is not rational and hence legal unless there is corroboration by corresponding entry in regular accounts of both the parties to the transaction. 10.7 The same view was also taken in the case of CIT v. P.V. Kalyanasundaram [2007] 164 T....