TaxTMI 
TaxTMI 
2020 (3) TMI 119
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....of the authorities below. 3. Briefly the facts of the case are that assessee is an individual and filed return of income declaring total income of Rs. 11.39 crores, which was processed under section 143(1) of the I.T. Act, 1961. In this case action under section 132 of the I.T. Act was carried out on 17.12.2013 and various documents/books of account etc. were found and seized. The statement of the assessee was also recorded. The assessee has declared additional income of Rs. 11.31 crores under the head "Speculative income". The A.O. issued statutory questionnaire in which documents found and seized during the course of search were also confronted to the assessee. During the year, the assessee has declared income from business and profit fr....
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.... the Directors of ASL Group companies and the impugned Laptop which contains the entry of Rs. 1.90 crores shown to have been paid as interest to assessee through Shri Rajesh and Shri Vikram as also been operated by Shri Ravinder Gupta and secondly, when most of the entries in the said Diary have been explained by collaborating documents including the Company, then, how the entries in the Laptop do not belong to the assessee. Further explanation of assessee was called for in which assessee reiterated the same facts and denied to have receive any interest from ASL Group. It was also explained that statement of Shri Gaurav Aggarwal of ASL group was also recorded during the course of search in which he has denied the entries. The assessee, ther....
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....er taken from the Laptop. Shri Ravinder Gupta and Shri Gaurav Aggarwal in their statements have denied to have made any payment on account of interest to the assessee. He has submitted that no corroborative evidence was found during the course of search so as to make the addition. The Ld. CIT(A) discussed this issue in detail in the impugned order and deleted the addition. The operative portion of the Order of the Ld. CIT(A) in paras 8.22 to 9 are reproduced as under : "8.22. It is observed that the Appellant had brought to the knowledge of the Assessing Officer, various issues relating to the specific facts of the instant case, particularly in the reply dated 28.03.16, relevant portion of which has been reproduced by the Assessing Offic....
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....d Strips Ltd. in the statement u/s 132(4), and the claims of Sh. Ravinder Gupta, Author of the entries in the statement u/s 131 and also the facts of the case brought out by Sh. Rajesh Gupta, the Appellant. In such a situation, there is no justification for any conclusion regarding any payment or accrual of Interest. Accordingly, the addition of Rs. 1,90,00,000/- made by the Assessing Officer as Undisclosed Interest Income is hereby deleted. 8.24. In view of the finding that there was no payment or accrual of Interest of Rs. 1,90,00,000/-, the adjudication of the various legal issues raised by the Appellant, and also the other Grounds of Appeal is not required." 5. The Ld. D.R. relied upon the order of the A.O. and submitted that since o....
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....m the assessee. In the fact of these denials, there ought to have been corroborative evidence to show that there was in fact such a transfer of money. Both the Commissioner as well as the Tribunal have come to the conclusion that there was no such material on record. 13. The Assessing Officer relied on certain other transactions entered into by the assessee with Ravi Talwar and Madhu Talwar for drawing a presumption in respect of the transfer of money, but the Tribunal rightly held that those were independent transactions and had nothing to do with the MoUs, which were the subject-matter of discussion. Even if there was something wrong with some other transactions entered into, that would not give rise to an adverse inference insofar as t....
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....ded under section 132(4) of the I.T. Act in the course of search in their ASL Group of cases and he denied in his statement to have made any interest payment to assessee, therefore, no liability could be fasten on assessee to prove that assessee received any interest. Similarly statement of Shri Gaurav Aggarwal was recorded under section 132(4) of the I.T. Act in the case of search in their group of cases who has also denied payment of any interest. Therefore, there is no evidence on record to prove if any interest payment is made to the assessee. The assessee also denied to have received any interest payment from any of these parties. These facts, therefore, show that no corroborative evidence was found during the course of search to supp....