2022 (5) TMI 134

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....ng grounds:- "1. On the facts and in law, the Hon. CIT(A) erred in confirming the addition of Rs.25,00,000/- as unexplained cash loan given by the appellant to one, M/s. Maad Realtors & Infra Pvt. Ltd. (Maad) based on entries on seized page no.6 of bundle no.1/party A-2, found and seized from the premises of the said' Maad, not appreciating that the appellant had not given any such cash loan and the issue was explained by the said Maad to be an accounting error on their part and therefore the addition was not justified. 2. On the facts and in law, the Hon. CIT(A) erred in upholding the addition of Rs.25,00,000/- as unexplained cash loan given by the appellant to one, M/s. Maad Realtors & Infra Pvt. Ltd. (Maad) based on entries on seized page no.6 of bundle no. 1/party A-2, found and seized from the premises of the said Maad, without affording the appellant any opportunity to cross examine the said Maad to establish the genuineness of his claim and in the result, the salient principles of equity, fairplay and natural justice have been breached and for that reason also the addition is required to be deleted." 4. The only issue arising in assessee's appeal is with regard to a....

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....M/s Maad Realtors and Infra Private Limited vide letter dated 08.09.2016 explained to the Assessing Officer that by mistake the said entry was credited to the account of the assessee by the accountant and subsequently the said error was rectified at seized paper No. 59, which only mentions loan of Rs. 2,00,00,000 in the name of assessee as liability in the books of M/s Maad Realtors and Infra Private Limited. Accordingly, the assessee submitted that the said paper No. 59 was also seized from the premises of M/s Maad Realtors and Infra Private Limited and therefore has to be considered as evidence. The assessee also submitted that the Assessing Officer has relied upon the documents seized from premises of 3rd party without granting the assessee opportunity to cross examine the said person. 9. The learned CIT(A) vide common impugned order dated 19.08.2019 held that perusal of document at page 15 indicates that it is a Ledger account for the period 01.04.2004 to 26.04.2011 and the receipt of cash of Rs. 25,00,000 against the name of Nana i.e. the assessee is appearing in voucher No. 55 at seized page 15 dated 16.12.2010. The learned CIT(A) further observed that at page No. 59 is the ....

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....month of December 2010. We find that this transaction was recorded in the books of the assessee and represented on the asset side of the balance sheet, forming part of the paper book at page No. 42. Further the assessee submitted that no amount in cash was paid by the assessee to M/s Maad Realtors and Infra Private Limited. Vide letter dated 08.09.2016, which is forming part of the paper book at page 28, the accountant of M/s Maad Realtors and Infra Private Limited clarified that Rs. 25,00,000 mentioned at seized page 15 is the investment by Rashmi Ameya Developers Housing & Estate Realtors Ltd. through the assessee. We, at page 40 of the paper book, scheduled to the balance sheet of the assessee, find that Rs. 25,00,000 is shown as unsecured loan to Rashmi Ameya Developers. Though, the letter dated 08.09.2016 filed before the Assessing Officer submitted that the entry of Rs. 25,00,000 in cash was by mistake of the accountant was passed in the Ledger account of the assessee and the same in fact was investment by Rashmi Ameya Developers Housing & Estate Realtors Ltd, the Assessing Officer neither called for any information / document from Rashmi Ameya Developers Housing & Estate Rea....

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.....07.2014, loose paper identified as No. 108 to 112 of bundled 2 were found and seized. These papers show interest calculation from March 2007 to March 2014 in respect of Gokhivare-Vasai and Central Park, Nallasopara. The principal amount shown at Rs. 1,32,30,000 as on March 2007 and interest at 2% per month. The cumulative amount is shown at Rs. 6,98,19,104.17 out of which Rs. 5,65,89,104 is interest component. Further principal amount of Rs. 47,00,000 on March 2007 and cumulative figure of Rs. 2,52,99,530 as on March 2014 which includes interest component of Rs. 2,05,99,530. The assessee vide letter dated 26.08.2016 submitted that these papers do not pertain to it. However, vide show cause notice dated 02.09.2016, the assessee was asked to show cause as to why interest of Rs. 5,65,89,104 and Rs. 2,05,99,530 been treated as undisclosed income on the basis of loose papers found in assessee's premises during the course of survey. In reply, assessee submitted that he is actively involved in political and social affairs of his area and his guidance is sought by various personal in social, political as well as business affairs. In the course of such activity, the above papers must have ....