TaxTMI 
TaxTMI 
2023 (11) TMI 1297
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....hether the grounds of appeal are without prejudice to each other." 3. The brief facts are that it is a case of search conducted under section 132(1) of the Income Tax Act, 1961 (the "Act") on 05.10.2017 at the residential premises of the assessee who is a practicing Chartered Accountant. For AY 2017-18 he had filed his return on 24.03.2018 declaring income of Rs. 12,16,68,990/- which was processed under section 143(1) of the Act. 3.1 Consequent to search, notice under section 153A of the Act was issued in response to which the assessee filed return on 23.08.2019 declaring the income of Rs. 12,16,68,990/-. Statutory notice(s) were issued and complied with. During search a diary was found and seized. Page No. 30 of Annexure A-8 thereof contained details of various transactions. The jottings on this page had also details of cash to one HKA amounting to Rs. 1.45 crore. The Ld. Assessing Officer ("AO") asked the assessee to explain source of said cash paid to HKA. The assessee replied on 24.12.2019 saying that page 30 of Annexure A-8 contained rough working of fund planning by his brother who was handling the real estate business of the family; that this document did not indicate ....
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....(A) at para 6 of his appellate order. In continuation thereto further 2nd and 3rd submission was made which find place at pages 23-30 of the order of the Ld. CIT(A). In para 7 of the appellate order at pages 30-40, the Ld. CIT(A) recorded his observation and findings and concluded in para 7.12 of his order as under:- "7.12 From the above it is clear that the AO erred in making addition by placing reliance on rough notings by drawing incorrect interpretations therefrom without referring to the statement recorded during the course of search or the submission and documents filed by the appellant. Further, the AO has not discussed the other figures as appearing in the said page and their relation with the appellant. In view of aforesaid, the action of the AO cannot be upheld and addition made by the AO amounting to Rs. 1,45,00,000/- is hereby deleted." 5. Dissatisfied, the Revenue is in appeal before the Tribunal and all the three grounds relate thereto. 6. We have heard the Ld. Representative of the parties and perused the records. It is not in dispute that in search at the residence of the assessee, a diary as per Annexure A-8 was found and seized and that page No. 30 ....
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....ent of the appellant recorded the course of search which has an evidentiary value under the law. There assessment order to substantiate that the appellant has actually made such exists nothing on record or in the payment to Mr. Homender Kumar Arora. The AO has erred in not placing any evidence on record to prove as to how the amount alleged to have been paid to HKA was paid i.e manner of payment, what was the source of the said payment and how the said sum was utilised by HKA. Further, the AO in the assessment order, not dealt with other figures as appearing on the impugned page and how they are linked to the appellant. As discussed above, the appellant is a practicing chartered accountant earning income from practice and other sources. The AO in its order has not stated as to how the said figures of taxes, instalments and other names are related to the appellant." 6.2 Again, the Ld. CIT(A)'s comments on Ld. AO's casual approach in stating that the payments noted on the sheet are actual payment and not in the nature of any planning are worth quoting. In para 7.7 of his appellate order, the Ld. CIT(A) says as under:- "The interpretation drawn by the AO that the impugned ....
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....t, 1964, providing in substance, that where in any financial year, an assessee is found to be owner of any money, bullion, jewellery or other valuable article, which is unaccounted for in the books of the assessee and the nature and source of acquisition whereof has not been explained by him to the satisfaction of the AO, such money and the value of such bullion or jewellery, etc. may be deemed to be the income of the assessee for such financial year. 86. This provision is complementary to the provisions of section 69 which enables the assessment of the value of investments which have not been recorded in the books of account of the assessee and the source of which has not been explained by him satisfactorily. 87. It has to be carefully noted that the conditions precedent to the application of the provisions of section 69A are that (i) the money, bullion, jewellery or other valuable articles in question are not recorded in the books of account, if any, maintained by the assessee concerned for any source of income; and (ii) that the assessee either offers no explanation as to the nature and source of acquisition thereof or the explanation offered ....