TaxTMI 
TaxTMI 
2012 (8) TMI 1199
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....e company and during the survey an old paper with some writing was found from the personal possession of the assessee. In the statement recorded during survey, it was stated that it was an old piece of paper about which he did not know / remember anything. However, since the assessee had tried to destroy that paper which was retrieved by the Department and it was concluded that the paper pertains to some undisclosed investment on which some interest has also been received. Ultimately an addition of Rs. 64 lakhs on account of undisclosed investment and Rs. 396725/- on account of interest on such investment was added to the income of the Company. 3. This addition was deleted by the ld. CIT(A) in the appellate proceedings filed by the company by holding that since the paper was found from the personal possession of the assessee and therefore, the addition could not be maintained in the hands of the company. Thereafter notice u/s 148 was issued against the assessee which was challenged before the ld. CIT(A). 4. The ld. CIT(A) dismissed this ground by observing that the loose paper definitely constituted information since the issuance of notice was before four years from the origi....
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....ng hearing that no protective addition was made in the hands of the assessee. The addition has been deleted by the ld. CIT(A) in Company's appeal No. 130- IT/CIT(A)-II/Ldh/08-09 by observing:- "It may be mentioned here that, as pointed out in the written submission of the Ld. Counsel also, the Assessing Officer who framed the assessment of the company has also intimated the Assessing Officer Shri Gurlal Singh Grewal with regard to taking action on the basis of impugned document." From high-lighted portion, it is clear that even the assessee has accepted that information regarding this piece of paper found during survey was intimated by the Assessing Officer by the company to the Assessing Officer with regard to the taking action. This means that the Assessing Officer had independent information. This fact has to be further considered along with the fact that the assessee had tried to destroy the paper during survey and this fact has not been denied during the course of hearing of this appeal. Therefore, the Revenue had prima facie evidence to believe that the some income has escaped assessment and accordingly the notice was issued within four years from the end of Asses....
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....alves (P) Ltd., 332 ITR 468 (PH) wherein an made on the basis of loose slips was deleted by the Hon'ble High Court. 10. On the other hand, the ld. DR for the revenue submitted that mere conduct of the assessee show that paper found during survey contained details regarding undisclosed income because initially he tried to destroy the paper. The document clearly shows that loans have been recorded in the names of various persons and then 2 or 3 dates have been given which clearly shows that the amount of interest receivable on quarterly basis. The figures of 5,510,5 have been written represented 5 and 10 lakhs. In any case Section 292C which has been inserted in the Act by Finance Act, 2007 with retrospective effect from 1.10.1975 which make certain presumptions. In the light of these presumptions the addition has been correctly made by the Assessing Officer. He also relied on the order of the ld. CIT(A). He also submitted that the case laws relied on by the ld. counsel of the assessee are distinguishable. 11. We have heard the rival submissions carefully. The document which is found during survey has been extracted by the Assessing Officer in para 5.1.1. of the order and r....
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....om the recovery was made. Clause (2) makes a presumption that the contents are true. Clause (3) refers to signature which is not applicable in the case before us as the document is unsigned. Even if it is assumed that document belongs to the assessee and the contents are true such contents do not lead to inference that the assessee had advanced certain loans. As seen above on the plain reading of the document, no such inference can be made. 11(ii) It is true that the decision of Hon'ble Delhi High Court in case of CIT V. Girish Chaudhary (supra) was rendered under the provisions of section 158B and may not be strictly applicable to other situation because in block assessment the position was totally different. In case of CIT V. Atam Vallves (P) Ltd. during course of survey some loose papers were found in the premises of the assessee containing bill of payment of wages. The employee and a director of the company explained the position how the slip was written. They did not represent the payment of wages. However, the Assessing Officer did not accept the explanation and made the addition. The ld. CIT(A) as well as the Tribunal partly set aside the addition. On this fact it was....