TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 633
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....CIT, Central Circle-2, Ludhiana, both u/s 153A read with section 143(3) of the Income Tax Act, 1961 (herein referred to as 'the Act') vide orders of even date 29.9.2021. 2. Only identical common issue in these two appeals of Assessee is as regard to the order of CIT(A) in deleting the additions made by the Assessing Officer being cash transaction found during the course of search on one incriminating document amounting to Rs. 2,86,29,100/- for A.Y. 2016-17 and Rs. 1,50,00,000/- in A.Y. 2017-18 added by the Assessing Officer u/s 69A of the Act treating the same as unexplained money. Since the issue raised by Revenue in both these appeals is common except the quantum of addition and grounds raised are identically worded, we will take....
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....e notice dated 28.9.2021 stated that perusal of seized "BTD 2011", which pertained from the period 1.4.2015 to 31.3.2016 contained some entries written in the relevant transactions which prove that these are neither Assessee's cash receipts nor cash payments. The Assessee contended before Assessing Officer that he has been arranging the finance for some parties and working as a broker for which he charged commission ranging 1 to 2% and earning commission accordingly. He pointed out that the transactions noted in the seized documents relate to various loans raised by him whether in cash or through banking channels. He enclosed the copies of ledger account to main party i.e. Apex Fibre and Rama Traders and tried to correlate the transactions ....
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....a Ltd., Bathinda and M/s. Rama Traders, Bathinda u/s 133(6) of the Act to confirm whether the transactions of copies of accounts as furnished by the appellant during the assessment and appellate proceedings were true or not. The said transactions were confirmed by the respective parties in response to enquiries made u/s 133{6). The reply received from the abovementioned parties is scanned below for ready reference: "Date: 10.05.2023 To The Commissioner of Income Tax CIT (Appeals)-5 Ludhiana Sub: Enquiry u/s 133(6) of income tax act, 1961 during the appellate proceedings in the case of Sh. Sanjeev Mittal, PAN: ABBPM9387M Re : Your letter F.No.E.No.,-5/LDH/22-23/313 dated 03.05.2023 Sir, We are in receipt of your ab....
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....iod 01.04.2015 to 23.02.2016 and 01.04.2016 to 31.03.2017 is true and as per our books of Accounts. We are also attaching the certified copy of Mr. Kasturi Lai Mittal for FY 2015-16 and FY 2016-17. For Rama Traders Sd/- (Gaurav Goyal) Sharing the Information with the AO The results of above enquiry were shared with the Assessing Officer vide email dated 11.05.2023 and the AO was directed to offer any comments on the same on or before 19.05.2023. Reminder was issued to the AO vide emails dated 19.05.2023, but no response was received till the date of finalization of appeal. Analysis The transactions in cheque as depicted in the ledger accounts furnished by the appellant before the Assessing Officer and also before this o....
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....naccounted money of the assessee. The version of the assessee with respect to cheque transactions being arrangement of funds done by the assessee for other parties as an independent broker has been accepted by the AO as no addition for the said transactions has been made but the same logic has not been applied to the cash transactions mentioned in the same account/seized document. In fact, the assessee must have received commission outside the books of accounts for which income has also not been declared by the appellant in his return. 5. Further the CIT(A) finally estimated as under: - "The appellant has not shown any income on account of the commission earned by him in his return of income, since the funds have been arranged by the ap....
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....o the major two parties Apex Fibre India Limited and Rama Traders, whose names are mentioned in the seized documents. The CIT(A) to corroborate the version of Assessee has called for information u/s 133(6) from these two parties i.e. like copy of ledger account of these parties depicting these transactions. The CIT(A) examined these parties and who filed confirmation letters [which are part of the order of the CIT(A)] and the same was referred to the Assessing Officer for comments but the Assessing Officer has not responded to the letter of the CIT(A) dated 11.5.2023 sent on email. The CIT(A) analyzed the transactions after verifying all the transactions and concluded logically that the interpretation of the seized documents, seems plausibl....