2025 (6) TMI 947

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.... the sake of convenience. Brief Facts 2. A search action under section 132 of the Income Tax Act, 1961 ("the Act") was conducted on 23.11.2021 at the residence and office premises of Shri Prakash M. Sanghvi and his family members. During the course of search, various diaries and loose papers were found and seized, marked as Annexure A-1 to A-12. The seized materials contained records of business transactions for Financial Years (FYs) 2009-10 to 2020-21 (relevant to AYs 2010-11 to 2021-22). On the basis of these seized documents, assessments were framed by the AO under section 143(3) r.w.s. 153A/144 of the Act, wherein the AO made various additions under section 69A or 69C read with section 115BBE on the basis of entries in the seized diaries. The details of additions relating to appeal before us are summarized below: Sr. No. Name of Assessee Ledger(s) in Diaries Amount Added Section Invoked AO's Order Date 1 Jayanti Mishrimal Sanghvi "JMS" and "JMS Flat A/c" Loose papers showing cash payments for land purchases. Rs. 1,74,91,624/- and Rs. 55,00,550/- 69A r.w.s. 115BBE and 69 r.w.s 115BBE 28.12.2022 2 Ravi Pawankumar Sanghvi "Rav....

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.... In the case of Ravi Pawankumar Sanghvi (ITA No. 1164/AHD/2024): 1. In the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 96,51,300/- on account of unaccounted cash receipt under section 69A r.w.s. 115BBE of the Act. 2. In the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 2,47,09,428/- on account of unaccounted expenses under section 69C r.w.s. 115BBE of the Act. 3. The Revenue craves leave to add/ alter/ amend and/ or substitute any or all of the grounds of appeal." In the case of Pawan Kumar Mishrimal Sanghvi (ITA No. 1165/AHD/2024): 1. In the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 95,31,533/- on account of unaccounted cash receipt under section 69A r.w.s. 115BBE of the Act. 2. The Revenue craves leave to add/ alter/ amend and/ or substitute any or all of the grounds of appeal. In the case of Shantilal Mishrimal Sanghvi (ITA No. 1168/AHD/2024): 1. In the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs....

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....anghvi "Ravi Paras Baroda" and "Ravi Startup A/c" (Annexure A-12) (i) Entries reflect intra-group adjustments managed by Shri Prakash Sanghvi. (ii) No independent cash receipt or expenditure. (iii) Peak credit supports no surplus cash. 3 Pawan Kumar Mishrimal Sanghvi "PMS" and "Pawanbhai A/c" (Annexure A-12) (i) Entries record cash payments from Shri Prakash Sanghvi's taxed income. (ii) No unexplained cash accumulation independently. (iii) Negative peak confirmed. 4 Shantilal Mishrimal Sanghvi "SMS" and "SMS Flat A/c" (Annexure A-12) (i) Cash transactions sourced from Shri Prakash Sanghvi's income. (ii) No independent unexplained receipt. (iii) Consistency with earlier years. 5 Yashkumar Shantilal Sanghvi "Yash Flat A/c" (Annexure A-12) (i) Entries reflect cash applications, not receipts. (ii) Funds sourced from taxed income of Shri Prakash Sanghvi. (iii) Negative peak working proved. 6. The Departmental Representative (SR) on the other hand relied on the order of AO. 7. We have carefully considered the rival submissions, perused the material available on record including the detailed paper books filed ....

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...., share transactions, and other businesses - and confirmed cumulative additions across A.Ys. 2013-14 to 2021-22. n support, the assessees placed before us a tabulated chart (Paper Book Page No. 141) summarising the year-wise additions confirmed in the case of Shri Prakash Sanghvi, which reads as under: A.Y. Shree Vyaaj Khaate Profit from Land Trading Profit from Shares Trading Profit from Other Trading Peak Credit Total Additions (Rs.) 2013-14 11,36,95,718 2,30,04,974 50,68,000 2,08,23,774 76,35,340 17,02,27,806 2014- 15 11,74,22,532 2,02,06,392 - 1,57,82,973 - 15,34,11,897 2015-16 9,86,19,719 7,57,73,290 3,82,30,940 2,03,27,194 - 23,29,51,144 2016-17 12,74,71,228 3,89,20,305 3,52,03,458 1,35,27,864 - 20,28,02,508 2017-18 10,67,07,386 4,38,64,244 4,05,97,418 1,16,33,461 - 20,28,02,508 2018-19 11,38,48,655 3,25,41,873 2,97,33,166 93,58,550 - 18,54,82,244 2019-20 12,07,43,303 5,16,80,239 39,14,800 - - 19,25,14,857 2020-21 18,12,08,711 5,93,82,971 2,90,13,801 2,09,20,859 - 29,05,26,342 2021-22 ....