TaxTMI 
TaxTMI 
2022 (11) TMI 1244
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....ised in appeal for assessment year 2010-11, as under: 1. Whether, on the facts and in the circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs.1,50,00,000/- made by the AO as unexplained income under section 68 of the Act without considering the fact that the statements of Shri Akshay Doshi, Director of M/s. Bhoomi Group was recorded us 131 of the Act wherein he had stated that his company was engaged in cash transactions with various parties which did not form part of the regular books of accounts, and the assessee was one such person in whose name payment of above amount was clearly mentioned in his statement." 2. "Whether, on the facts and in the circumstances of the case and in law, the CITIA) has erred in deleting the addition of Rs.1,50,00,000/- made by the AO as unexplained income under section 68 of the Act without considering the fact that the information in this case was provided by the Investigation Wing after due analysis of data, consequent to search on the Bhoomi Group, which has been used by the AO after considering overall facts and circumstances of the case and therefore it is not based merely on as bald statem....
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....s evidencing cash receipt and loan to various parties have been found and in one of the printout taken from the laptop of Ms Vasumati Modi, name of the assessee as recipient of cash loans is recorded. Shri Akshay J Doshi, the director of "M/s Bhoomi Group" of companies also accepted the cash transactions recorded in the incriminating documents found from his premises. According to the Assessing Officer, this cash loan received by the assessee from M/s Bhoomi group was undisclosed income of the assessee. 5.3 Secondly, information was received from the non-filer management system of the Income-tax Department that Sh Kalpesh Shah having PAN AAGPS7432L had purchased shares worth Rs.1,54,97,097/- for the period from 18/02/2010 to 23/03/2010 in cash market transactions through Bombay stock exchange. However no return of income was filed. Therefore the Assessing Officer recorded reason to believe that income escaped assessment. 5.4 It was noticed that return of income was filed by the assessee under PAN No. AAJPS8486R. It was admitted by the assessee that share transactions were carried out with another PAN and both PAN belonged to the assessee, so the Assessing Officer completed th....
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....i Group and the interest of Rs.15,75,000/- paid thereon to the total income of the appellant, in the light of material and evidence brought on record. It is noted that the main premise of the impugned addition is the statement given by Mr. Akshay Doshi us 131 of the Act on 28/12/2015 and 04/01/2016 in relation to the excel sheet extracted from the laptop of another person, Smt. Vasumati Modi. On perusal of the contents of the document, it is noted that the name 'Kapleshbhai' is mentioned at several places against the amounts mentioned against it. There is nothing brought on record by the AO that 'Kalpeshbhai' and the assessee are the same person. It was pointed out by the appellant that the sheet states, 'Kalpesh ag profit in Doshi family'. The appellant had claimed that he does not have any relation with Doshi family and this contention of the appellant remained unrebutted by the AO. The appellant had also pointed out that Shri Akshay Doshi in his statements dated 28/12/2015 and 04/01/2016 had averred that the code reference 'ACM' in the excelsheet denoted the monies belonging to him and his partner, Mr. Ajay Metha. I therefore find sufficient force....
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....ordingly availed cash loan from Bhoomi Group. This particular theory is clearly far-fetched and does not hold any water. It is noted that the assessee had also provided the details of MIs JHP Securities to the AO and therefore the AO ought to have made enquiries from Ms JHP Securities to substantiate his theory and take it to its logical conclusion. I however find that the AO failed to do so. For the reasons set out in the foregoing, I therefore hold that the noting found in the excel-sheet was dumb in nature and even the theory set out by the AO to link this sheet with the appellant was inconclusive and thus unreliable. 7.5 The AO in his impugned order has heavily relied on the statement of Shri Akshay Doshi dated 28/12/2015 and 04/01/2016 to hold that the notings in the excelsheet pertained to the assessee. Having gone through the entire statement, I find merit in the submission of the assessee that the statement did not contain any assertion/admission/material whatsoever on the basis of which any prudent person instructed in law would have reached Shri Doshi had implicated the appellant or alleged that the noting found therein pertained to him. Instead I find that he ha....
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....port of the contention that the disallowance based solely relying on the statement of third person recorded in the course of the search, without there being any independent corroborative material, is not justified, the Ld. CIT(A) relied on the decision of Hon'ble Bombay High Court in the case of CIT vs. Reliance industries Ltd (102 taxmann.com 372). 6.3 In support of the contention that reliance placed by the Assessing Officer on the provisions of section 292C is misplaced, the Ld. CIT(A) held that said presumption under section 292C of the Act regarding documents found and seized can be inferred against the persons from whom same is found and seized. In support of his finding, he relied on the decision of the Hon'ble Supreme Court in the case of CIT Vs Sunita Dhaddha SLP (Civil) No. 9432/2018 dated 28/3/2018 (SC). 6.4 In view of the above, the Ld. CIT(A) deleted the addition made on account of unexplained cash loan and unexplained interest expenditure. 7. Before us, the Ld. counsel of the assessee filed a paperbook containing pages 1 to 32 inter alia submissions filed before the Ld. CIT(A). The Ld. counsel also filed few decisions relied upon by the Ld. CIT(A). 8. The ....
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....er Ledger Account. XLS contains three sheet namely 1. Ledger, 2. Name list and 3. Temp. The sheet Ledger contains various ledger account. These ledger accounts are posting of data from journal sheet. Regarding entries in Journal accounts folder, he stated that transactions recorded therein were executed in cash and had not been recorded in regular books of accounts. He also explained that each figure in the said excel sheet had to be multiplied by 100 to arrive at correct amount of the transaction. 10.3 The Ld. Assessing Officer has reproduced a scanned copy of the extract of ledger Account titled as "Kalpesh Shah A/c" and statement of Akashay Doshi, recorded in the course of such action. 10.4 Assessing Officer concluded that cash loan transactions received from Bhumi group by the assessee was in exchange of cash deposited with Bhumi group of Rs.1,50,00,000/-. 10.5 In our opinion, the Leonard Assessing Officer is not justified in making the addition due to following reasons: (i) In terms of section 292C of the Act that if any document is found in possession or control of any person in the course of search action under section 132 of the Act, then it is presumed th....