TaxTMI 
TaxTMI 
2021 (12) TMI 206
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....54,22,430/-. Its case was selected for scrutiny and income of Rs. 6,67,58,012/- was assessed on scrutiny assessment under Section 143(3) of the Income Tax Act (the 'IT Act' hereinafter). 2.1. The case was transferred to the DCIT, CC-1 under Section 127 of the IT Act and it was reopened under Section 147 of the IT Act after dully recording the reasons on getting the sanction of the CIT (Central), Ahmedabad under Section 151 of the Act. 2.2. A notice under Section 148 was issued on 27.03.2017. The information had been received from the office of the CIT in connection with the search and seizure action conducted in the Venus Group of Company which had led to seizure of various incriminating materials. According to the Revenue, unaccounted cash transactions of the Venus Group were recorded on cash vouchers and thereafter on the strength of the recording made on cash voucher, entries were recorded on the Day Cash Book. This had led to not only the reopening of the assessment but also addition of Rs. 4 Crores on account of unexplained cash credit under Section 68 of the Act. 2.3. It was alleged that an amount of Rs. 4 Crores has been received by the assessee from the Sunderdeep Builde....
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....under the law, the Assessing Officer will need to consider his duty to bring on record such material information which is available outside the assessee's control which the assessee asserts is existing and it is within the power of the Assessing Officer to call for. 2.8. He has extensively also considered the allegations of the Assessing Officer of accommodation entry transaction to hold that the Assessing Officer in assessment order has not identified any of the statements of main persons of the Venus Group namely Shri Ashok Vaswani, Shri Deepak Vaswani and Shri Rajesh Vaswani, proprietors of the Sunderdeep Builders about their admission that the Venus Group has indulged into any accommodation entry transaction. Nothing has been brought on record against the company even from the submissions made by the Venus Group search case. No statement is recorded of Shri Ashok Vaswani, Shri Rajesh Vaswani and Shri Deepak Vaswani under Section 132(4) and 131 in respect of the scanned copies of the seized loose pages reproduced by the Assessing Officer in the assessment order. 2.9. The appellate authority also verified the ledger account of M/s. Sunderdeep Builders from the books of accounts....
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....als. It recognized that the challenge to the additions towards the unexplained cash credit under Section 68, on merit, has been dealt with by the CIT elaborately. It has also concurred with the CIT Appeals that the unaccounted cash transactions of the Venus Groups which were detected from the premises of the searched person were stated to be first recorded by the searched person on a loose papers in encrypted form and then on the basis of the recording made on these cash vouchers, the entries were recorded on a Day Cash Book not forming part of the regular books of accounts maintained in ordinary course. They were the transactions in a continuous manner without any gap from January, 2007 to 07.03.2015. 3.1. It also considered the contention of the Revenue that the coding was done to alibi and camouflage the real value of unaccounted cash transactions and held that the allegation of alleged accommodation entry of receipt/payment of existing loans receivable by assessee from M/s. Sunderdeep Builders largely centered around the statement recorded under Section 131 of the Accountant Mr. Deepak Gajjar of the Venus Group. It is a testimony where he deposed of the unaccounted cash books ....
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....atement yeilded from the accountant of the searched person. The revenue has alleged underhand cash transactions. Hence, the primary onus in the instant case, squarely lied upon the Revenue and that to justify it with direct or circumstantial evidences. The onus rested upon the revenue has not been discharged at all and thus did not shift on to assessee. Consequently, in the absence of any credible proof of receipt of cash from assessee, the apparent has to be taken as real i.e. Sunderdeep Builders have repaid Rs. 4 Crore through banking channel in discharge of its existing outstanding liability as a matter of course." 4. Learned Senior Advocate Mr. Bhatt has extensively argued this matter and has also taken us through the statement recorded of Mr. Deepak Gajjar and the cross- examination conducted of his by the respondent company. The same had been called for by this Court after examining the entire material on record. As could be also noticed from the statement given by this person that he has no personal knowledge of any source of the cash. All that he has done is at the instance of Mr. Ashok Vaswami. His nature of job was to note down and jot down as per the directions of Mr. V....