2025 (7) TMI 1679

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der dated 17.03.2023 by Assistant Commissioner of Income Tax, Central Circle-16, New Delhi (hereinafter referred as "Ld. AO") under Section 143(3) of the Act for assessment year 2020-21. 2. Brief facts of case are that a search and seizure operation under Section 132 of the Act was conducted on 17.11.2021 and on subsequent dates on different business and residential premises of Pacific Group of Cases. The case of assessee was also covered and various incriminating papers/documents were found and seized during the course of search and seizure under consideration. Original return in this case was filed on 13.02.2021 declaring income of Rs. 1,18,68,54,630/-. The case was selected under CASS for assessment year 2020-21. Subsequently, statutory....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nces should not be re-added and that once the receipts are added, the expenditure should be treated as application of funds is found to be acceptable. However, with respect to the other entries, it is found that these entries recorded in the excel sheets are records of actual cash received by PDCL, which have been duly noted by Shri Nitin Maheshwari. The peak of receipts, amounting to Rs. 19,85,13,356/-, are of the nature of the unaccounted cash received by PDCL, which have not been shown in the books of accounts of PDCL. With respect to the source of the funds of Rs. 19,85,13,356/-, the assessee was proved the source of amount of Rs. 18,00,00,000/- as being funds received from sale of flats and the same amount has also been offered as addi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s of receipts in cash. The tax is payable @ 60% + surcharge u/s 115BBE of I.T.Act." 8. Ld. CIT(A) in para 9.2.3 stated as under: "9.2.3 I have perused the working made by the AO and also gone through the working made by the appellant. I find that both the working are on the basis of the same seized documents and have been made as per their respective perceptions. The appellant before me has pointed out certain errors/mistakes in the working by the AO. I have looked into these errors pointed out by the appellant in the working made by the AO which are as under: 1.While computing the unaccounted income considering the seized documents, the A.O has also included the interest payment of Rs. 1,18,00,755/- (Para 6 of the assessment order). T....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Group. Thus, the claim of the appellant that the interest expenditure should be allowed out of the total receipts is not found acceptable. In view of the above, the interest paid or payable cannot be considered as income of the assessee and also since the director of the appellant company has accepted that all the transactions are unexplained business receipts and he had shown the notional interests in these sheets, thus the interest paid/payable needs to be ignored. The statement of Sh. Bansal should not be considered partially correct and partially incorrect, but it should be either accepted or rejected completely. The interest payment of Rs. 1,18,0,755/- shown in the seized documents cannot be allowed as expenditure either as no int....