2025 (5) TMI 2237

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....ed, did not mention the mode in which loan was advanced and also did not mention whether the amount of Rs.45 lakhs was balance of outstanding loan or whether it was the loan advanced as on the date of making the noting and therefore, the inference drawn by the A.O. only on the basis of the noting in the loose papers was not justified on facts and in law. 3. The learned CIT(A) ought to have appreciated that in spite of specific written request made by assessee, the A.O. had neither confronted the statement, if any, of Mr. Ramzan Kokani nor allowed his cross examination and the A.O. had also not confronted the copies of relevant agreement and sale deed entered by Mr. Kokani with some third party which were relied upon by the A.O. to draw adverse inference against the assessee and hence, the addition made by the A.O. was not justified on facts and in law. 4. The learned CIT(A) erred in not appreciating that the presumption u/s 132(4A) was not applicable in respect of documents found with third party in as much as, the searched party may have made such notings in order to suit its own requirements for explaining source of unaccounted payments made by him and therefore....

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.... through the Ledger Account which is at page no.19 of the paper book to demonstrate the same. Ld.AR took us through the submission made by assessee before the Assessing Officer, wherein assessee has clearly submitted that the loan pertains to earlier years. Therefore, no addition can be made in A.Y. 2012-13. Submission of ld.DR : 3. Ld. DR for the Revenue relied on the order of Assessing Officer and ld. CIT(A). Findings & Analysis : 4. We have heard both the parties and perused the records. It is noted that the Assessing Officer had issued notice u/s. 148 of the Act on 28.03.2017 for A.Y. 2012-13. The Assessee filed a reply stating that the Return of Income filed on 26.09.2012 may be treated as Return of Income in response to notice u/s. 148 of the Act. Assessee also requested for reasons for reopening recorded by the Assessing Officer. Assessing Officer provided the copy of the Reasons. Assessee filed elaborate reply. Assessing Officer made an addition of Rs. 45 lakhs. 4.1 The relevant paragraph 9 of the Assessment Order is reproduced here as under : "09. It is very clear from the above discussion that the amount of Rs. 45,00,000/- as mentioned in the do....

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....ansaction of G. No. 332/1 of Talwade dated 25/10/2012 mentioned on the seized document. The Sathe Khat agreement dated 28/09/2011 and purchase deed dated 25/10/2012 of the land at Gat No. 332/1 of Tallwade was also found and seized as per Annexure-A, Item No. 2. On verification of the sathe Khat agreement and purchase deed there is difference of Rs. 33 lacs which was paid in cash by Mr. Ramzan Kokani to the sellers of the land. In view of the above it is appears that Mr. Ramzan Kokani received loan of Rs. 45 lacs in cash from Mr. Atul Vijay Madan during the F.Y. 2011-12. Further, a summon u/s 131 of the I.T. Act, 1961 issued to assessee by the DDIT(Inv) but assessee did not attended neither submitted submission. ON perusal of Balance-Sheet, P&L Account, Return of Income and Audit-Report on ITD, transaction of Rs. 45 lacs is not recorded in books of account and remained unexplained." 5.2 Thus, Notice u/s.148 was issued based on the seized documents in the case of Kokani Group. Section 153C of the Income Tax Act is reproduced here as under: "Assessment of income of any other person. 153C.(1) ^33[Notwithstanding anything contained in section 139, section 147, sect....

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....e Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. 6. Section 153C of the I.T. Act starts with "Notwithstanding anything". Thus, as per section 153C of the Act, whenever ....