TaxTMI 
TaxTMI 
2025 (6) TMI 947
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....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 "Ravi Paras Baroda" & "Ravi Startup A/c" Rs. 96,51,300/- and Rs. 2,47,09,428/....
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.... 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. 81,89,250/- 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 ....
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....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 by the assessees, and duly noted the reasoning adopted by the lower authorities. The background facts are not in dispute. A search and seizure operation under section 132 of the Act was conducted on 23.11.2021 at the residence and office premises of Shri Prakash M. Sa....
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....sh 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 12,36,99,898 6,55,75,117 3,16,62,994 3,46,28,745 - 25,55,66,754 Total 1,10,34,17,150 41,09,31,405 21,34,24,576 16,30,80,936 76,35,340 1,89,84,89,407 7.2. Thus, it stands clearly established that the entirety of the unaccounted cash flows emanating from the seized diaries has already been duly taxed in Shri Prakash Sanghvi's hands. In light of this, the attempt to tax the same cash fl....