AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 590
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....facts of the case are that assessee is a firm dealing with infrastructure related projects and contracts. It filed the original return of income for the assessment year 2017-18 on 31/10/2017 declaring income of Rs. 66,38,900/-. Subsequently, there was a survey conducted in the case of the assessee and certain documents were impounded. Basing on one of such documents, which is a loan agreement between one Shri Uttam Kumar Reddy and on one had and one Shri Y. Appa Rao and his wife on the other hand. Learned Assessing Officer found from the document that an amount of Rs. 1 crore was purported to be loan to the assessee and of that Rs. 1 crore, Rs. 80 lakhs was received through banking channels and Rs. 20 lakhs was by way of cash. Learned Asses....
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....d in the name of the assessee. Learned Assessing Officer, accordingly added the said amount of Rs. 20 lakhs to the income of the assessee under section 68, 69, 69A and 69C read with section 115BBE of the Income Tax Act, 1961 (for short "the Act"). 5. Assessee preferred appeal before the learned CIT(A). It could be seen from the impugned order that the assessee pressed into service the documents that were adduced before the learned Assessing Officer and further stated that the amounts from the creditors were directly credited to the assessee's account which shows that insofar as the transaction of sale of flats and adjusting Rs. 80 lakhs towards sale consideration is concerned, this loan agreement has no role to play. It was further conte....
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....ut looking into any corroborative evidence and also ignoring the inherent inconsistencies in such presumption. He submits that the alleged loan agreement is a dumb document, because it does not speak anything about the liability of the assessee under the terms of such document, apart from the fact that such a loan agreement was not signed by the borrower himself. Further, at no place of the said document, the name of the assessee is to be found and merely because Shri Uttam Kumar Reddy happens to be one of the partners of the assessee, it cannot be said that each and every transaction entered by him with strangers shall bind the assessee. The fact of assessee subsequently, adjusting the amount sent through the banking channels does not vali....
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....ome of the assessee, because even according to the Revenue, it was a loan and a loan accounted in the books or not can never be the income of the assessee. When the nature and source of any amount is known, then, none of the sections like 68, 69, 69A or 69C of the Act cannot be made applicable to the facts of the case, let alone the fact that here the case is reverse that there is no entry in the books of the assessee, revealing any income without explaining the nature and source. 11. Learned AR further submitted that learned Assessing Officer by order dated 21/04/2021 in the case of Shri Uttam Kumar Reddy for the assessment year 2018-19 added this amount of Rs. 20 lakhs under section 69A of the Act and the very same amount is added in t....
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....ument was entered into by Shri Uttam Kumar Reddy, such a thing would have clearly been mentioned in the document itself. The entire agreement of loan does not speak of such amount being paid as advance for purchase of flat or such amounts to be adjusted subsequently. What all it speaks that the borrower desires to deposit agreement of sale dated 29/09/2016 with the creditors towards security. When Shri Uttam Kumar Reddy does not enter into the transaction without specifically mentioning that he was doing so on behalf of the assessee, such a transaction will not bind the assessee at all. Viewing these facts in gist positions to each other, it clearly establishes that though there was an attempt to enter into a particular transaction under th....