TaxTMI 
TaxTMI 
2025 (6) TMI 2128
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....re as under:- "On 09.03.2015, the Directorate of Income Tax (Inv.), Ahmedabad took custody of 42 gunny bags seized by Surat Police after executing a warrant u/s 132A of the Income Tax Act, 1961 in the case of Sh. Narayan Sai and Asaram Bapu. A perusal of the documents found in the 42 gunny bags revealed the unaccounted money lending business of Asaram Bapu and his associates. Material evidence in this regard was also retrieved from the data backup of the computer, pen drives, hard disks etc. also found inside the gunny bags. During the course of post-search proceedings, on 25- 26/09/2015, several beneficiaries of the money lending business were identified by the Surat Directorate. The statement of Sh. Devidas Tikamdas Chattani alias Dev Kumar, a close confidant of Asaram babu, was recorded on 25.09.2015 u/s 131 of the Income Tax Act. At Asaram's instance, Sh Devi das had conducted an audit of cash loans account of Delhi Ashram of Asaram Bapu and was hence privy to and could throw light on the contents of the data. He identified the ledger bearing title "Bhagat" as that pertaining to the funds managed by Sh. Santlal Aggarwal, amounting to Rs. 200 crores. H....
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..... Aggrieved by the orders of the Ld. CIT(A), the Assessee preferred the above captioned Appeals. 4. The Ld. Counsel for the Assessee addressing on Ground No. 1 to 7 submitted that there is an absence of live linking or nexus between the material and the A.O's belief of escarpment of income and submitted that the A.O. assumed jurisdiction u/s 147 of the Act on the basis of borrowed satisfaction Investigation Wing, wherein the A.O. had made no independent enquiry and approval has been granted in mechanical manner by the PCIT u/s 151 of the Act. The Ld. Counsel has also taken us through the reasons recorded by the A.O. and submitted that the A.O. in order to form belief of escarpment, relied upon the ledger account in the form of table/chart and statement of Devidas Tikamdas Chattani alias Dev Kumar. The Ld. Counsel further submitted that the issue involved in the present appeal is squarely covered by the order of the Tribunal dated 16/06/2020 in ITA No. 9890/Del/2019 in the case of M/s Shagun Jewellers Pvt. Ltd. and further submitted that the said order of the Tribunal has been followed by the Co-ordinate Bench of the Tribunal in the case of Gian Chand & Sons Vs. ACIT in....
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....t Lal Aggarwal was handler of Rs. 200 crores at Delhi from where the loan was disbursed to around 100 parties, out of which 60 such parties were transacted through Shri Sant Lal Aggarwal. 7. The Assessing Officer of the assessee was informed by the Investigation Wing of the department that from verification of documents seized, it clearly appears that Shri Sant Lal Aggarwal received cash loans from Shri Asharam and further disbursed to other parties and the assessee is one of the beneficiaries. According to the Assessing Officer, the following cash loans were given to the assessee: Date Beneficiary Name Debit Credit Group Contra 01.07.2009 Shagun Jewellers 0 72,00,090 Govind Delhi 01.07.2009 Shagun Jewellers Pvt. Ltd. 72,00,090 0 Govind Interest received 01.07.2009 Shagun Jewellers 75,00,000 0 Govind Delhi 29.03.2010 Shagun Jewellers 0 83,16,000 Govind Delhi 29.03.2010 Shagun Jewellers Pvt. Ltd. 83,16,000 0 Govind Interest received 29.03.2010 Shagun Jewellers 83,00,000 0 Govind Delhi Total 3,13,16,090 1,55,16,090 ....
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....Assessing Officer at page 25 of the assessment order clearly show that the entire addition has been made on surmises and conjectures. The relevant para of the assessment order reads as under: "From above it is clear that M/s. Shagun Jewellers has had transactions with M/s Index Securities & Research Put Ltd which was a conduit company managed by Mr. Santlal Aggarwal who has further acted on behalf of Sh. Asharam Bapu. Hence, it cannot be ruled out that cash loan were received by the assessee from Santlal Aggarwal. Moreover, the seized material retrieved, clearly indicates that the assessee company has paid Rs. 1,55,16,090/- in cash on account of interest on such cash loan. 29. Considering the facts of the case in hand, in the light of statement of Shri Sant Lal Aggarwal, we do not find any merit in the impugned addition and the same is directed to be deleted. Accordingly, Ground Nos. 4 and 5 are allowed." 7. The amounts mentioned in the ledger account in the case of the assessee which is the similar ledger considered by the ITAT in the order of the M/s Shagun Jewellers is mentioned below: A.Y. 2009-10 Date Debit Credit Beneficiary....
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.... 09.09.2010 0 1000000 Gian Chand Mahender Delhi 2010-11 10.01.2010 514800 0 Gian Chand Mahender Delhi 2010-11 10.01.2010 0 514800 Gian Chand Mahender Interest received 2010-11 12.03.2010 1000000 0 Gian Chand Mahender Delhi 2010-11 18.01.2011 491100 0 Gian Chand Mahender Delhi 2010-11 18.01.2011 0 491100 Gian Chand Mahender Interest received 2010-11 31.03.2011 472500 0 Gian Chand Mahender Delhi 2010-11 31.03.2011 0 472500 Gian Chand Mahender Interest received 2010-11 A.Y. 2012-13 Date Debit Credit Beneficiary Name Group Contra FY 30.06.2011 412500 0 Gian Chand Mahender Delhi 2011-12 30.09.2011 0 412500 Gian Chand Mahender Interest received 2011-12 09.02.2011 1500000 0 Gian Chand Mahender Delhi 2011-12 30.09.2011 461250 0 Gian Chand Mahender Delhi 2011-12 30.09.2011 0 461250 Gian Chand Mahender Interest received 2011-12 27.12.2011 432000 0 ....