2022 (2) TMI 684

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....the instant case. 3. We have heard the rival submissions and perused the materials available on record. We find that the assessee is engaged in the business of construction. A search and seizure action was carried out u/s 132 of the Act on 25.06.2015 in Ahuja Group and assessee was one of the group companies. During the course of search, various incriminating materials in the form of loose papers and digital forms were found. The premises of Shri Sunil Chaudhary, driver of Shri Jagdish Ahuja, Promoter of the group, was also searched and parallel books of accounts of the Ahuja group were found in his premises. Analysis of the data found was confronted to the promoter Shri Jagdish Ahuja who had admitted to receiving on money in various real estate projects undertaken by the group. Notice u/s 153C of the Act was issued to the assessee on the basis of data found during the search. The name of the construction project undertaken by the assessee was styled as 'PRASADAM'. On the basis of the statements recorded and the corroborative evidences found during the search, the ld AO issued a show cause notice to the assessee proposing to make an addition to the on money received. The year wi....

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....ja group were maintained in the form of parallel books of accounts in Tally software accounting package. The assessee submitted that Shri Jagdish Ahuja is Matriculate by education and a business man not having much knowledge of accounting entries, however, the Tally accounting software being easy to understand, the unaccounted transactions were maintained therein. The unaccounted transactions related to the entire Ahuja group of concerns and not limited to a particular entity and the data maintained thereon was consolidated data for the entire Ahuja group without any entity wise segregation. This fact was also duly confirmed by Shri Jagdish Ahuja, promoter of Ahuja group in his statement recorded u/s.132(4) of the Act on 28/06/2015 while giving reply to Question No. 42 thereon. The assessee also sought to explain that on-money receipts from various customers are shown as receipts in the parallel books of accounts and out of the same, some customers deals are not materialised and hence, part of the on-money receipts or whole of them had to be returned back to the customers. This return of on-money has been shown as on-money reversals in the cash book maintained in Tally. The assesse....

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....one out of the balance available in the Ahuja group as a whole and this fact is also noted by the ld. AO in his assessment order in para 10.8 at page 13. Accordingly, the assessee pleaded that the overall picture of the Ahuja group as a whole has to be considered to conclude whether there is any shortage of cash available and as per the factual position, there is no shortage of cash as per parallel books of accounts of the Ahuja group as a whole and hence, there cannot be any addition towards unexplained cash outflow of Rs. 5,69,93,024/- warranting addition u/s.69 of the Act. 3.4. The assessee also pointed out that the relevant period cash book print out of the parallel books of accounts was analyzed and it was seen that the amount refunded towards on-money receipt was mainly out of cash loans taken which was already separately assessed in the hands of Shri Jagdish Ahuja by the order of the Hon'ble Tax Settlement Commission wherein total amount of Rs. 26 Crores on peak basis was added. Thus, it is pointed out that source for excess refund of cash outgoings were properly explained. The assessee also furnished the relevant period cash book of parallel books of account to show that....

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..... The same are reproduced hereunder:- 3.7. The ld. Counsel for the assessee also submitted various details of additions made on account of net on-money in the case of various group entities of the Ahuja group for A.Y.2014-15 and also on account of inflation of expenses and other income. These facts clearly go to prove that there is lot of force in the submission of the ld. AR that there was absolutely no negative cash balance in the parallel books of accounts maintained in the Tally package. Hence, we hold that there is absolutely no infirmity in the order of order of the ld. CIT(A) granting relief to the assessee as there is no negative cash balance in the parallel books of accounts maintained for the whole Ahuja group which is the primary basis for making an addition per se. 3.8. In view of the aforesaid observations, we hold that the order of the ld. CIT(A) does not warrant any interference, accordingly, the grounds raised by the Revenue are dismissed. 4. In the result, appeal of the Revenue is dismissed. Order pronounced on 29/11/2021 ============= Document 1 Sai Ashray Developers Private Limited AY 2014-15 ITA NO 976/MUM/2020 Summary of Seized Cash Bo....

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....,97,475 3,333 1,50,558 72,11,10,442 9,64,03,52,563 67,85,28,158 2,36,18,803 42,86,807 1,39,300 2,93,191 67,25,36,277 1,09,77,74,868 2,12,89,05,404 2,14,40,64,695 2,34,61,71,896 3,40,27,98,468 2,99,64,89,025 75,38,28,758 15,54,26,69,391 Document 2 ASSESSMENT YEAR Particulars dadd Total 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Payments Business Expenses 11,72,14,929 8,61,32,001 19,28,48,828 14,66,60,142 12,50,56,543 180808,770 33,15,85,406 6,15,83,300 1,24,18,89,919 Prabhadevi-Rent Rent Paid 12,500 12,500 10,29,167 2,00,000 1,50,000 13,79,167 Staff welfare 20,770 7,500 50 28,270 Salary Paid 8,75,000 17,75,000 18,00,000 70,90,000 13,30,000 1,28,70,000 Showroom Rent 10,32,000 9,00,000 7,10,000 3,45,000 18,45,000 28,50,000 76,82,000 Transfer Charges Paid 25,000 25,000 Drawings 34,06,000 33,63,900 41,47,750 43,29,075 75,05,900 46.59,450 60,72,744 2,60,900 3,37,45,719 Flat Purchase 2,2500,000 2,25,00,000 Expenses inflated in books 13,75,416 17,29,898 7....

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....Ashray 6,67,00,000 (30,50,89,900) (23,83,89,900) Present appeal. Developers Private Limited 7 Sankalp Siddhi 2,14,07,500 Developers Private Limited (4,95,000) 2,09,12,500 Income taxed @12% as per order of the Hon'ble Settlement Commission. 8 Siddhi Raj Hosuing Projects Private 9,88,00,000 Limited (5,00,70,000) 4,87,30,000 Income taxed @12% as per order of the Hon'ble Tribunal. 9 Adarsh Industrial Estate Private Limited 10 S.B.Developers 46,35,98,291 (14,28,36,270) 29,07,62,020 Income taxed @12% as per order of the Hon'ble Tribunal. 22,30,47,750 (6,50,94,500) 15,79,53,250 Assessing Officer taxed the net on money @100%. CIT(A) reduced to 25%. Cross appeal are pending before Hon'ble Tribunal. Total 1,09,24,68,541 (61,25,85,670) 47,98,82,871 Document 4Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 el....