TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 1047
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....During the course of the said raid, cash of Rs.43,88,500/- was found and seized besides some incriminating documents and articles such as laptops, mobiles, TV etc. On the basis of the information received relating to this raid conducted by the Vigilance Squad of State Police, Gandhinagar and the seizure of cash and incriminating documents and articles, an authorization under Section 132A of the Income-tax Act, 1961 ("the Act" in short) was issued on 30.01.2012. An application was also made before the Additional Chief Judicial Magistrate, Kalol for requisition of assets, in response to which the police authority was directed by the Court vide order dated 15.05.2012 to handover all seized assets which were ultimately requisitioned under Section 132A of the Act on 05.09.2012. Although a different stand was taken by the assessee in respect of cash of Rs.43,88,500/- found during the course of raid, he finally claimed that he was engaged in the business of real estate agency and the said cash represented his commission income earned from the said business. Consequent to action under Section 132A of the Act, proceedings under Section 153A of the Act were initiated in the case of the asses....
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....r over phone gives us their saudas which is entered into computers. The match may be for 1 day or 3 days or 7 days etc. As per our match is finished same day people either pays us or receive from us. As per our experience 100% people take their profits but 75 to 90% people pays their losses. This is settled in cash immediately for which no records were maintained. 3) Estimation of our income Please refer my letter dated 31-12-2014 filed on 01-01-2015 where in I have clearly mentioned that I have truly disclosed all my assets (Capital) as income. This was done to buy peace and not confrontation with I.T. Department. I am 40 yrs old and this is my total Wealth/Assets/Capital other than a House which belongs to my wife no other document evidencing any other assets was found during search. I myself do not know how much I have earned or lost out of these activities. Still I filed my return to pay taxes to makes my life normal for a respectable future. I have nothing to say any more and your goodself is requested to assess me as per my returns filed. I hereby clarify again that I have not filed my return of income on the basis of income but on the basis of assets." 3. The above e....
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....he income should not be estimated on the basis of evidence found during the search. In this connection submitted in the reply dated 08-01-2015 to the show cause notice that he has disclosed all assets as income to buy peace and non confrontation with Income Tax Department. The above contention of the assessee is not tenable. The assessee himself has declared income from commission in return of income which is also confirmatory with the statement given before ITO (Inv), Unit-II, Ahmedabad. Therefore the income earned from cricket betting is over and above the income from commission shown in the return of income. The hardcopy of laptop data were already provided to the assessee. The transaction found for the year under consideration is of Rs. 33,09,01,900/-. In this regard the assessee has stated in his reply dated 08-01-2015 as "the copies of book lets provided by you out of our seized material contains only entries of saudas entered into. During the course of matches, as per telephonic conversation the entries in computer was made for his settlement of dues. No profit or loss can be arrived at with these entries". The contention of the assessee is totally baseless and without an....
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....rned CIT(A) did not find merit in the said submission made on behalf of the assessee and proceeded to confirm the additions of Rs.33,09,019/- and Rs.1,11,18,493/- made by the Assessing Officer for the following reasons given in paragraph No.6 of his impugned order:- "6. I have gone through the assessment order and considered the submission filed by the Ld AR. I find that the appellant has not explained the amount of Rs.33,09,01,900/- for A.Y. 2011-12 and Rs.1,11,18,49,350/- for A.Y. 2012- 13 and has not given details of income from running the racket of cricket betting. I also do not find the explanation that the winners take all money and losers default in payment as acceptable because betting rackets are run by powerful syndicates managed by the strong people from underworld who are capable enough of realizing their dues and enforcing that there is no default. Betting is a matter of habit and immense trust. Neither the betting running syndicate nor the betters are known to quit. Both parties have their ways and means to enforce discipline and payments. If winner is assured of his winning amount, the loser also cannot risk his life and his family by defaulting in payments. Other....
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....in respect of cash found and seized during the raid conducted by the Vigilance Squad of State Police, Gandhinagar, and although it was initially stated to be the income of the assessee relating to his cricket betting business, this stand was subsequently changed by the assessee by stating that the same was belonging to his brother-in-law Mr. Himanshu and even the affidavit of Mr. Himanshu was also filed owning the said cash. Thereafter, in the statement recorded on 19.10.2012, the assessee again changed this stand by stating that the cash found and seized was his income from dalali. Even though there was no mention of any real estate agency business in the said statement, there was a specific mention by the Assessing Officer on page No.7 of his order that a letter dated 09.09.2014 was filed by the assessee during the course of assessment proceedings stating that he was doing dalali business of sale and purchase of land, flat & bungalows in the last two years. Keeping in view the same as well as all other facts of the case, we do not find any infirmity in the orders of the authorities below to treat the cash of Rs.43,88,500/- found and seized during the raid conducted by the Vigilan....