TaxTMI 
TaxTMI 
2025 (8) TMI 1840
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....(3), Mumbai on 13.07.2020 on the Triton Group in which the assessee Shri Shiv Shankar Ramswaroop Sharma was also searched u/s 132 of the I.T Act. 3. During the course of the search, certain notebooks/diaries were found for the period 01/04/2015 onwards and seized from the premises of Shri Jiten Pujari who was an employee in the assessee's proprietorship. Shri Pujari in his statement recorded u/s 132(4) of the Act, had admitted that the diaries contained "Kachaha Cash Hisab" and that the transactions mentioned therein were maintained on the instructions of Shri Ratankant Sharma (assessee's son). The entries mentioned in the said diaries form the basis for majority of the additions made in the hands of the assessee. However, later during the cross examination, Shri Jiten Pujari reverted his original statement and stated that noting on the diaries has nothing to do with the business of the assessee. However, ld. AO has considered the same as afterthought and discussed in detail 11 evidences in the assessment order to correlate the statements recorded during the course of search, other evidences found in the search such as text messages and images found in the digital device....
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....enticity of data in seized diary." 4. "On the facts and circumstances of the case, the Learned CIT(A) as well as the Learned Assessing Officer has erred in relying upon the digital evidences without issuing any certificate u/ s 65B of the Indian Evidence Act, 1872." 5. "On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as the Learned Assessing Officer has erred in assessing the earlier four years beyond six assessment year without appreciating the fact that no income in the form of assets had escaped to tax, without considering the facts & circumstances of the case." 6. "On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making an addition u/s 68 of the Income Tax Act, 1961 amounting to Rs.5,26,26,315/- by treating the sales consideration on account of sale of shares of M/s. Krishnadeep Trade & Investment Ltd as alleged unexplained cash credit, without considering the facts & circumstances of the case." 7. "On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in restricti....
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....law, the Learned CIT(A) as well as Learned Assessing Officer has erred in making an addition based on statement of Jiten Pujari without appreciating the fact that he himself has denied during cross examination before Assessing Officer about authenticity of data in seized diary." 4. "On the facts and circumstances of the case, the Learned CIT(A) as well as the Learned Assessing Officer has erred in relying upon the digital evidences without issuing any certificate u/s 65B of the Indian Evidence Act, 1872" 5. "On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as the Learned Assessing Officer has erred in assessing the earlier four years beyond six assessment year without appreciating the fact that no income in the form of assets had escaped to tax, without considering the facts & circumstances of the case." 6. "On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred restricting the disallowance made by the Learned Assessing Officer to the extent of Rs. 1,25,31,479/- u/s 37(1) of the Income Tax Act, 1961 by treating the genuine expense as alleged non- genuine expenses, without consider....
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....en Pujari without appreciating the fact that he himself has denied during cross examination before Assessing Officer about authenticity of data in seized diary." 4. "On the facts and circumstances of the case, the Learned CIT(A) as well as the Learned Assessing Officer has erred in relying upon the digital evidences without issuing any certificate u/ s 65B of the Indian Evidence Act, 1872" 5. "On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as the Learned Assessing Officer has erred in assessing the earlier four years beyond six assessment year without appreciating the fact that no income in the form of assets had escaped to tax, without considering the facts & circumstances of the case." 6. "On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred restricting the disallowance made by the Learned Assessing Officer to the extent of Rs.3,11,94,122 u/s 37(1) of the Income Tax Act, 1961 by treating the genuine expense as alleged non- genuine expenses, without considering the facts & circumstances of the case." 7. "The appellant craves leave to add, amend, alter or delete the s....
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....r. The said provision, based on various representation, was repealed from the statue and this new section was introduced which can be invoked when income escaped is more than Rs. 50 lakhs and the same was found in the form of an asset. The word 'asset' as defined in Explanation 2 to above proviso shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account. In this case, assessment was made under section 153A dated 26.03.2022 for the assessment year 2012-13 to 2014-15, which is relevant AY/ AYs' as per section 153A(1) and additions have been made on account of sale of shares as unexplained cash credits under section 68, disallowance of expenses U/s 37(1) and unsecured loan U/s 68 of the Act. The Assessing Officer has not made any addition on account of undisclosed asset which is sine qua non/pre- condition for assuming valid jurisdiction for making assessment under section 153A for the relevant AY/ AYs' as per 'fourth proviso' to section 153A(1) r/w Explanation-2 to section 153A as amended by the Finance Act, 2017 (w.e.f. 01/04/2017), the addition on account of unexplained cash credit co....
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....ord and the paper book filed before us along with supporting case laws. 10. Whether respondent has jurisdiction to take proceedings under section 153A of the Act for the relevant assessment year? Section 153A of the Act read as under : "153A (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day May, 2003, the Assessing Officer shall - (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139; (b) assess or reassess the total income of six assessment years immediatel....
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....nd of the assessment year relevant to the previous year in which search is conducted or requisition is made. Explanation 2 - For the purposes of the fourth proviso, "asset" shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account.] [(2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the [Principal Commissioner or] Commissioner : Provided that such revival shall cease to have effect, if such order of annulment is set aside.] Explanation - For the removal of doubts, it is hereby declared that, - (i) save as otherwise provided in this section, section 153B and section 153C, all other provisions of this Act shall apply to the assessment made under this section; (i....
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....ujari. The said email, which has been reproduced in the assessment order, ostensibly refers to transactions involving sale of shares and payment of cash. However, it is evident upon scrutiny that the addition made by the Assessing Officer pertains not to the alleged cash component, which could arguably fall within the realm of unaccounted assets, but to the sale proceeds of shares. 12.1. What is crucial to note is that the sale of shares is neither unexplained nor undisclosed. The assessee has duly reported the said transaction in its return of income, which was originally assessed under section 143(3) and subsequently reassessed under section 143(3) read with section 147 of the Act. There is no material on record to indicate that the sale proceeds of such shares constitute unaccounted income or that the shares themselves were not recorded in the regular books of account. 12.2. Thus, it becomes manifest that the precondition prescribed under the fourth proviso to section 153A(1) namely, the existence of an undisclosed asset of fifty lakh rupees or more, unaccounted and unearthed during the search is not satisfied in the present case. Absent such a foundational jurisdictional ....
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....n laid. 15. We, therefore, find considerable merit in the submission advanced by the ld. Authorised Representative for the assessee that in the absence of any addition pertaining to a specified asset of the requisite monetary threshold, the Assessing Officer could not have legally ventured to make additions on other items such as disallowances under section 37(1), or unexplained cash credits under section 68. These heads of income do not qualify as "assets" within the meaning ascribed in Explanation 2 to section 153A(1) and as such, cannot constitute the jurisdictional fact required to trigger the extended ten-year assessment window. 15.1. In this regard, a tabular representation of the additions made for the relevant assessment years is apposite: Assessment Year Nature and Quantum of Additions 2012-13 Rs.5,26,26,315 on account of alleged bogus long-term capital gains and Rs.36,43,873 as commission income, both treated as unexplained cash credits under section 68 2013-14 Rs.2,72,50,751 disallowed under section 37(1) and Rs.2,05,000 treated as unexplained loan under section 68 2014-15 Rs.4,98,90,418 disallowed under section 37(1) and Rs.1,34,64,988 trea....
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....y High Court in Ashok Commercial Enterprises VS ACIT (supra) held as under: "A plain reading of section 153A (1)(b) of the Act shows that respondent having jurisdiction under the said section is empowered to assess or re-assess the total income of six years immediately preceding the assessment year relevant to the previous year in which the search was conducted and for the relevant assessment year or years. Explanation 1 below section 153A of the Act defines the expression relevant assessment years as " ....... shall mean an assessment year preceding the assessment year relevant to the previous year in which search is conducted or requisition is made which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year in which search is conducted or requisition is made". In order to make an assessment for assessment year which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year, in which the search was conducted, the 4th proviso to section 153(A)(1) of the Act sets out certain further conditions which are requi....
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....ns as stipulated in Clause (a) of the fourth proviso to Section 153A(1) of the Act are not satisfied. The AO does not have the possession any books of account, other documents or evidence, which reveals that the petitioner's income that is represented in the form of an asset has escaped assessment. 18. In terms of Explanation 2 to Section 153A(1) of the Act, the term 'asset' is defined to include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank accounts. 19. The AO seeks to disallow expenses on account of doubting the genuineness for the reason that the same were not incurred wholly or exclusively for the purpose of the petitioner's business. Absent any further material to establish that such expenses had resulted in the acquisition of any asset, the conditions stipulated in the fourth proviso to Section 153A(1) of the Act would remain unsatisfied. 20. In the aforesaid view the period of limitation for issuing a notice under Section 153A of the Act, in the given facts of this case, would necessarily have to be confined to a period of six assessment years immediately preceding th....
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.... 5 is allowed. (c) ITA No. 2683/Mum/2025 for Assessment Year 2014-15 - Ground No. 5 is allowed. 21. Consequently, since the invocation of section 153A is found to be bad in law, the appeals filed by the assessee for assessment years 2012-13 to 2014-15 are allowed, and the corresponding appeals filed by the Revenue are dismissed. 22. Now coming to the remaining assessment years, we shall now take AY 2015-16 to 2021-22. In these years the following three issue arises: A. Addition of unsecured loan u/s 68 of the Act. (Revenue appeal); B. Disallowance of addition U/s 37(1) of the Act (CIT(A) partially conformed so both assessee and revenue appeal) and C. Addition based on seized diary from the residence of Shri Jiten Pujari (CIT(A) partially conformed so both assessee and revenue appeal). Each of the issue is discussed as under: A. Addition of unsecured loan u/s 68 of the Act: 23. We have carefully heard the submissions of both parties at considerable length and have duly perused the voluminous documentary evidence filed before us. We have also examined the specific materials referred to by the ld. representatives during the course of hearing. The crux ....
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.... bogus. Therefore, once the appellant has discharged his onus as per the provisions of section 68 of the I.T. Act and the documents furnished prove the identity, creditworthiness of the lenders and genuineness of the transactions, the unsecured loans cannot be treated as unexplained cash credits merely on the fact that their blank cheque books were found during the search from the office premises of the appellant. Therefore, the addition made by the AO of Rs.1,34,64,988/- u/s 68 of the I.T. Act cannot be sustained. Accordingly, the AO is directed to delete the same. Appeal on this ground is thus ALLOWED." 24. On an independent perusal of the records and materials placed before us, we find that the identity of all the lenders in question is duly established. The assessee has placed on record confirmations from each of the lenders, along with their respective Permanent Account Numbers, and copies of their income tax returns. To demonstrate the genuineness of the transactions, the assessee has also produced copies of bank statements, which clearly show that the funds were transferred through normal banking channels. The amounts received as loans are reflected in the books of the as....
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....he Act on 21.07.2020, Shri Shiv Shankar Sharma (Prop: NICC.) admitted that above mentioned entities are used to book bogus expenses and withdraw cash from the regular books of account of NICC. The relevant portion of statement of Shri Shiv Shankar Sharma is reproduced below: Q.25 During the Search, while recording the statement Shri Jiten Pujari at his residential premises at 2104/A, Chaitanya Tower, Prabhadevi, Mumbai in response to Q.No.23 of the statement has stated that M/s. Noble India Construction Co. is involved in paper transactions with the following entities: S. No. Name of the entity 1. Joy Construction 2. Laxmi Enterprises 3. Unique Construction 4. Raj Enterprises 5. Moonlight Construction Co. Ans. Sir, I confirm that M/s. Noble India Construction Co. is involved in non-genuine business transactions with the above mentioned entities. There was no actual business transaction between M/s. Noble India Construction Co. and above mentioned entities. These entities were used to book non-genuine expenses and to generate cash. The exact details of the transactions will be provided in a weeks' time. 27. The AO stated t....
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....ated anything adverse about the other parties. Therefore, merely due to the fact that the cheque books were lying at the business premises of the appellant, the transaction cannot be held as bogus without any corroborative evidence. It is to be noted that the appellant is a contractor and requires labor for the same. Therefore, the entire expenditure debited as labor charges cannot be held as bogus on the basis of assumptions. Therefore, the disallowance made by the AO of Rs.38,24,608 cannot be sustained. Accordingly, the addition to the extent of Rs 38,24,608 gets deleted. Appeal on this ground is thus PARTLY ALLOWED." 28. During the course of hearing before us, the Ld. Counsel of the assessee re-iterated the arguments made before the CIT (A) and requested that no disallowance should be made u/s 37(1) of the Act as the assessee has furnished all the documents to prove the genuineness of the transaction. Alternatively, he also argued that even if we accept the contention of the revenue, it is evident from the documents of Jiten pujari that various expenses in the form of wages to labour paid in cash was found noted, which clearly proves that the cash received from these persons ....
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....these transactions were not entirely fictitious or sham in nature. There exists sufficient documentary evidence to demonstrate that the expenses incurred in relation to these five parties were, at least in part, genuine and connected to the execution of the assessee's contractual obligations. However, having regard to the nature of evidence unearthed during the search particularly the use of common cheque books and the close connection with Shri Jiten Pujari it cannot be said that the entire expenditure claimed is above board. 30.3. In the circumstances, and balancing the equities, we are of the considered view that a reasonable estimate of disallowance would meet the ends of justice. Accordingly, we direct that only 10% of the total expenditure incurred in relation to these five parties be disallowed, and the balance be allowed as genuine business expenditure. The Assessing Officer is, therefore, directed to restrict the addition to the extent of 10% of the total amount booked under labour expenses in respect of the said five parties. The ground of appeal raised by the assessee is thus partly allowed. 31. We now turn to the issue concerning disallowance of labour charges....
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....action with these parties during assessment year 2020-21. However, the Assessing Officer has extrapolated this finding to the preceding years as well and made additions to the purchases shown in those years wherever there were transactions with these two entities. 32.1. Upon a detailed analysis of the assessment order as well as the findings of the ld. CIT(A), we are inclined to agree with the conclusion drawn by the first appellate authority. It is trite law that no addition can be made merely on the basis of extrapolation unless there is supporting evidence to demonstrate that the pattern of cash payments persisted in earlier years as well. In the instant case, apart from the noting in the diary for AY 2020-21, no such evidence has been found indicating similar cash payments in the preceding years. 32.2. The principle of extrapolation, particularly in the absence of any corroborative documents or seized material for the earlier years, cannot be invoked mechanically. Notably, even in the diary entries, there is no reference to cash dealings with these entities for AYs 2018-19 or 2019-20. The ld. CIT(A) has, therefore, rightly restricted the addition only to the amount reflec....
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....tion. This clearly establishes that the seized material does not represent independent or unrecorded financial activity, and hence, the presumption drawn by the Ld. AO is factually baseless. II. Lack of Authorship and Identification: A majority of the pages in the seized diaries bear unidentified signatures, initials, or markings. The name of the assessee or any of its group concerns is conspicuously absent from most of these pages. This raises serious doubts about the authorship, ownership, and relevance of the documents to the assessee. Thus, the inference that the assessee had knowledge of or control over the diary is wholly erroneous and lacks evidentiary support. III. Cancelled and Redundant Entries: Many pages in the diary stand cancelled, struck off, or overwritten. There are also instances of identical entries appearing multiple times. Despite the obvious non-finality and duplicity of such notings, the Ld. AO has proceeded to treat them as genuine, unaccounted business transactions on the basis of assumptions and surmises-contrary to settled principles of evidence and accounting. IV. Personal and Fictitious Noting by Mr. Jiten Pujari: During the course of ....
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....ut impossible in a real-world business setting. This further confirms that the diary entries are incoherent, fictitious, or arbitrarily prepared. IX. Mismatch with Alleged Cash Balances: The Ld. AO has further erred in treating Pages 25-26 and 29-32 of Annexure 38 as reflecting actual cash balances. However, when matched with the summary cash flow derived from these very diaries, it is evident that the alleged balances do not align or reconcile with any real-time cash status. This clear inconsistency further invalidates the use of the diaries as a basis for any addition X. Applicability of section 292C of the Act AO made the addition on the plea that assessee failed to explained the transaction recorded in the seized diary without appreciating the fact that these diaries are not seized from the premises of the assessee but from the residence of Shri Jiten Pujari. Since neither the documents were found from the possession of the assessee nor he was author of these documents hence provisions of section 292C is not applicable on the assessee. He relied upon the decision of Mumbai ITAT in the case of his group company Triton Hotels & Resorts P Ltd (ITA No. 3123/Mum/2023) wh....
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....ted expenses was considered in the hands of VEPL and same amount also added as unrecorded transaction in the hands of assessee on the basis of ledger of Udaipur account. 35. On the contrary Ld CIT- relied upon the finding of the AO as well as CIT(A) on credibility of the evidences found during the course of search with Shri Jiten Pujari. On addition as per peak credit basis, Ld CIT-DR submitted that CIT(A) has accepted the peak credit without any opportunity to the AO and he requested to restore the addition made by AO. 36. We have considered the rival submissions advanced by both the parties and have examined the facts and material on record. It is a settled proposition of law that not every entry or notation found in seized documents can, by itself, form the basis for an addition, particularly in the absence of supporting corroborative evidence. In this context, we also take judicial note of the provisions of section 65B of the Indian Evidence Act, which require a certificate for the admissibility of digital evidence. Where such a certificate is lacking, the authenticity and veracity of digital data remains legally unverified and, therefore, susceptible to challenge. 36.....
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....d the other principal constituents of the group and that the transactions are within their knowledge. The decisions relied upon by the appellant in case of other criminal/ civil proceedings cannot be imported into the Income Tax proceedings mechanically, in view of the specific presumptions available in Sec. 132 and Sec. 292C. This part of the argument of the appeal stands rejected. 11.4 The evidence no 8 to evidence no 11 as discussed by the AO in the assessment order is based on the documents/ diaries seized during the search. These entries recorded in the seized documents have also been accepted by Shri Jiten Pujari as unaccounted cash transactions, therefore the contention of the appellant that the same carries no evidential value has no merit. 11.5 The appellant has pointed out certain evidences to show that the seized diary is a dumb document. For instance, he has stated that some of the pages contain random jottings enumerating the scores of games played, teaching to daughter, information of other persons/ companies, recorded transactions, repetitive noting, cancelled pages, etc. I am not able to accept this argument of the appellant to reject the evidentia....
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....e names of multiple individuals and employees associated with the group, including Shri Venkatesh, Shri Jiten, Shri Dharmendra Borse, Shri Siyaram Pandey, Shri Suresh Prasad Singh, Shri Raju Sharma, Shri Ashutosh Sharma, Shri Bhanwarlal, Shri Madan Gawas, Shri A. Verma, Shri Sudhir Sawant, Shri Dibakar Padhy, and Shri A. V. Marulkar, among others. It also includes entries under Salary A/c, reflecting internal disbursements. A closer examination of the notings in these ledgers clearly indicates that they predominantly represent cash payments made towards salaries and other internal expenses, rather than unaccounted receipts or income. These transactions appear to have been regularly executed as part of the assessee's business operations, and the pattern of entries corresponds to standard payroll-related disbursements. Further, during the course of post-search proceedings, the assessee has submitted detailed explanations and supporting documents, demonstrating that the aforementioned individuals were regular employees on the payroll of NICC-a fact which the ld.AO himself appears to have partially acknowledged in the assessment order. The details of payments made to these em....
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.... 20.11.17 Recd from DDA for sonee Delhi 1,00,000 04.12.17 Recd from RS 1,40,000 06.12.17 Recd from Dineshji given to RS in Jaipur 2,00,000 25.12.17 Recd from Lights, the one BKC Lights 1,40,000 25.01.18 Recd from From SS ji paid in Delhi to Adsure (7.5 lacs) 4,50,000 04.03.18 Recd from From SS ji (Jui sent to Del thro PJ) 5,00,000 15.03.18 Recd from From SS ji (Jui gave to From SS ji A/c) 5,00,000 22.03.18 For PP Pound 9,44,450 Total 98,41,416 40. Further the same notebook seized vide Annexure A-45 has been titled "MUMBAI", the details of payment/expense of Rs. 80,69,894 made to various persons. The date wise details of the cash receipts as mentioned by the AO in the assessment order for AY 2018-19 is reproduced as under: Date Particular as recorded in the seized notebook/diary Amount (Rs) 03.07.17 Malad Mess 7,900 03.07.17 Car A/c. 15,000 03.07.17 Bhanwarlal Post office 10,500 03.07.17 Railway pass 6,000 05.07.17 Office Expenses 2,000 10.07.17 Office Expenses 3,143 10.07.17 conveyence 355 10.07.17 courier 386 10....
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....e 600 05.08.17 Office Expenses 2,565 04.08.17 Malad Servants salary 10,500 04.08.17 Bhanwarlal salary 3,500 04.08.17 Malad Mess 10,000 04.08.17 Hotel Bills 2,350 04.08.17 Jiten Fuel 7,951 08.08.17 Region 9,500 08.08.17 Malad maide salary 2,400 08.08.17 Misc. 9,500 09.08.17 Hotel Bills 2,700 14.08.17 Mumri Site expenses 30,000 14.08.17 Servant - Druv salary 6,750 14.08.17 Misc. 4,400 14.08.17 Overheads 9,428 14.08.17 Tata sky 1,415 21.08.17 Misc. 1,700 21.08.17 Medicines 1,300 21.08.17 Hotel Bills 1,162 23.08.17 Goa A/c. 18,700 24.08.17 Mumri Goa Expenses 1,75,000 24.08.17 Pandey ji expenses 50,000 24.06.17 Malad Repairs 1,410 28.08.17 Tillai Hydro site expensess 30,000 28.08.17 Conveyance 815 28.08.17 Stationary Expenses 928 28.08.17 Courier 1,365 28.08.17 Office Expenses 1,008 31.08.17 Car A/c. 15,000 31.08.17 Mess A/c. 10,000 31.08.17 Bhanwarlal extra salary 3,500 31.08.17 Malad Servants 8,500....
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.... 1,161 06.10.17 Office Expenses 3,895 07.10.17 Malad Mess 5,000 07.10.17 Malad cable 1,515 07.10.17 RS Medical 10,450 12.10.17 MUMRI site paid for sale expenses 60,000 12.10.17 Bhauwar lal paid for Sept 3,500 12.10.17 Car A/c 10,000 12.10.17 Misc 900 12.10.17 Malad Servant 7,500 12.10.17 Servant Shankar Salary 8,000 12.10.17 conveyance 2,000 12.10.17 Medical 1,600 12.10.17 Misc 1,700 13.10.17 Druv servant BKC salary for sept 17 7,500 16.10.17 Conveyance 880 16.10.17 Courier 360 16.10.17 Xerox & stationery 4,825 16.10.17 Hotel Bills 1,047 16.10.17 Hotel Bills 1,333 16.10.17 Office expense 2,634 16.10.17 Misc 370 16.10.17 Goa o/c Electricity Bill 6,640 20.10.17 courier 1,150 23.10.17 Diwali 24,900 30.10.17 Malad - Repairs Eureka Forbes AMC 5,640 30.10.17 MUMRI general expense 90,000 30.10.17 MUMRI SITE CASH BOOK 80,000 31.10.17 Tata Sky 300 01.11.17 Car A/c. 10,000 01.11.17 TAX Hotel Bill 3,040 02.11.17 Misc ....
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....fty thousand) 2,50,000 11.12.17 Misc for pooja 1,600 12.12.17 Dharmendra Borse paid salary for the month of November 17 50,000 12.12.17 Tillary Hydro, deposited in S Sawant ( month of november 2017 25,700 12.12.17 Mumbai office Shantaram Ydge for month of Nov 17-10000; Mr and Mrs Dhruv salary for november 25,000 12.12.17 car account cleared upto 30.10.17 4,011 12.12.17 imprest on 01.12.17 10,000 12.12.17 Mumri cash book October salary 40,000 12.12.17 Mumbai cash book November salary Ashutosh 23,000 12.12.17 paid bhanwar 11,500 16.12.17 Mumri cash book paid thro Sh pandeyji for mumri (Seven Lac only) 7,00,000 16.12.17 conveyance 780 16.12.17 courier 673 16.12.17 Xerox and stationery 01.12. to 15.12 3,011 16.12.17 office fooding and supplies Gold coins snack etc 2,679 16.12.17 office expenses sweeper + news paper 2,123 16.12.17 mobile recharge 300 22.12.17 car account paid shri PSK 15,000 22.12.17 Misc 2,000 24.12.17 Mumri -gen exp paid to gram panchayat sarang puri for NOC for const of workshop + Staff quarter by p....
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....7 RS (Venky) paid 20,000 01.08.17 pd DDA 49785 23,500 19.09.17 paid PSIC 50,000 01.10.17 pd cash Ratanji Siddhivinayak 50,000 01.10.17 pd for I phone warranty 3,500 04.10.17 Imprest with jui 7,568 04.12.17 DDA Expenses RS 2,000 05.02.18 Paid to Venky 1,700 15.02.18 60 capsules $ 60 4,500 28.02.18 Nitro Gym 10.03.18 to 10.03.19 70,800 14.03.18 Paid cashto RS 10,000 Total 80,69,894 41. Further, during the course of search in the statement recorded Assessee admitted that he is receiving some commission from the vendors who supply material/ services to his infra projects and various hotels owned by group companies in cash. Relevant statement is reproduced hereunder: 41.1 Upon a careful reading of the preceding statements, it becomes evident that the various cash receipts recorded under different individual names may, in fact, represent part of a broader pattern of commission-based transactions. The multiplicity of entries does not necessarily connote multiple independent transactions but could be reflective of a single underlying commercial activity spread across aliase....
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....determination of taxable income, must necessarily reflect core factual parameters-such as the actual dates of receipts, the precise quantum, and the nexus of such receipts to corresponding business expenditures. Where such vital details are either omitted or misrepresented, the resultant computation loses its evidentiary value and cannot be treated as a valid basis for making additions. 44.1. We are, thus, constrained to hold that the peak working relied upon by the ld. CIT(A), being both factually erroneous and procedurally flawed, cannot be sustained. At the same time, we have also examined the assessee's contention that certain entries represent mere internal transfers of cash between different sets of books or accounts maintained for operational purposes. These entries, it is contended, neither represent fresh receipts nor new expenditures. Upon verification of the records, we find this contention to be substantiated, and accordingly, the ld. CIT(A) has rightly excluded such entries from the computation of total receipts and payments. 45. It is a well-established principle of law that if the seized documents reflect both income and expenditure components, the Revenue ....
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....ent embedded in the on-money therein shall be liable to be taxed and not the entire amount. The relevant extract from the judgment is reproduced as under: "60 ..... Further, admittedly the on-money is merely receipts of sale proceeds as noted by the Assessing Officer in his order at Page No. 3 and what could be taxed is only income and not receipts. We further note that in various judgements relied on above it has been categorically held that on-money receipts are in the nature of sale price and not income per se. In the case of CIT v. President Industries [258 ITR 654 (Guj)] it has been held that the entire sum of undisclosed sale proceeds cannot be treated as income. Similar view has been taken by the Hon'ble Bombay High Court in the case of CIT v. Hariram Bhambhani ITA NO. 313 of 2013 & M/s. Sumer Builders in ITXA No. 4915 & 5130/MUM/2016 (A.Y: 2011- 12). Further in the case of Guruprerna Enterprises (supra) relying on Abhishek Corporation v. DCIT [63 TTJ (Ahd) 651] it has been held as under: - "Even though it is established from seized documents that assessee was receiving premium/'on money' on booking of flats belonging to third parties, entire re....
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....that the appellant made any investment outside books of accounts to make alleged unaccounted sales in respect of the aforesaid appellate order." 50. Hon'ble High Court of Gujarat in the case of CIT Vs. Leo Formulations (P.) Ltd wherein it was held that "The Commissioner of Income-tax (Appeals) has recorded a finding that the estimate of income has to be rightly rational as well as based on the material on record, and that the entire sales or processing charges cannot be treated as income chargeable to tax, unless there is any material to come to such conclusion." 51. In the case of ITO Vs. Aradhana Textile Mills ITA No. 968/Ahd/2009 dated May 13, 2011it was held that "the entire sales or processing charges would not be the income of the assessee but only the net profit would be subjected to tax" 52. In light of the foregoing discussion and on careful examination of judicial precedents cited before us, it stands well- settled that in cases involving unaccounted cash receipts and expenditures, the addition is to be restricted to the reasonable profit margin embedded in such receipts, rather than taxing the gross amount. This principle strikes a just balance between the o....
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.... is taxed substantively in the hands of the assessee, the same amount shall not be brought to tax again in the hands of Shri Ratankant Sharma, so as to avoid double taxation of the same income. 54. On the final issue pertaining to the estimation of the profit element, the ld. AR has pleaded for the adoption of a gross profit (GP) rate of 15%, contending that such a rate is in consonance with the declared book results of the assessee in the regular return of income. While we have considered this plea with due regard, we are also guided by the nature of business, the operational structure, and the characteristics of the seized materials. In our considered opinion, a GP rate of 20% would be fair and reasonable in the facts and circumstances of the case and would appropriately capture the profit component embedded in the unaccounted cash transactions. 54.1. It has also been brought to our notice that for AY 2016-17, there are no cash receipts recorded, but only cash expenses, which are claimed to have been incurred out of receipts from PRW disbursements in the current or earlier years. However, in the absence of demonstrable availability of such cash balance carried forward from ....
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....nts, or expenditures under sections 68, 69, 69A, etc., cannot be invoked in the present context. 56.1. The nature and character of the transactions, as borne out from the records, relate to unaccounted business receipts and not to unexplained investments or assets of the kind contemplated under section 69A. Consequently, such income falls within the regular charging provisions and is liable to be taxed at the applicable slab rates under normal provisions of the Act, and not at the punitive rate prescribed under section 115BBE. Accordingly, this ground of appeal raised by the assessee merits acceptance and is hereby allowed. 56.2. The ld. AR has also brought to our attention that during the course of the search, an amount of Rs.12.35 crores in cash was found and added under section 69A by the Assessing Officer. The ld. CIT(A) deleted the same on the reasoning that the cash found was already subsumed in the peak credit balance. Now that we have reversed the approach of taxing the peak balance and instead directed that income be taxed based on gross profit estimation on unaccounted receipts, we find that the cumulative income worked out year-wise is sufficient to cover the amoun....
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....684/Mum/2025 1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making an additions/ disallowance in the assessment completed u/s 143(3) r.w.s. 153A of the Act without any incriminating documents being found during the course of search at premise of the assessee, without considering the facts and circumstances of the case. This ground of the assessee is dismissed based on the finding given in para 35. 2. On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as Learned Assessing Officer has erred in making an addition/ disallowance on the basis of the evidence found at the premises of the third party. This ground of the assessee is dismissed based on the finding given in para 35. 3. On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as Learned Assessing Officer has erred in making an addition based on statement of Jiten Pujari without appreciating the fact that he himself has denied during cross examination before Assessing Officer about authenticity of data in ....
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.... identity, creditworthiness of the lenders and genuineness of the unsecured loans during the assessment proceedings; The said ground of revenue is dismissed based on the finding given in para 29. 3. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in admitting the additional grounds filed by the assessee regarding adoption of Theory of Peak Credit without appreciating the fact that the ground of applicability of Peak Credit Theory had not been submitted before the Assessing Officer during the assessment proceedings owing to which the Assessing Officer was deprived from verifying the merits of the submissions pertaining to adoption of Peak Credit Theory by the assessee; The said ground of revenue is partly allowed based on the finding given in para 32-55. 4. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not forwarding the submissions pertaining to the additional grounds relating to Peak Credit to the Assessing Officer so as to allow him an opportunity to verify whether the assessee has submitted documentary evidences that would establish that the entries of cash receipts h....
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....e on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cell phones of Shri Jiten Pujari and Shri RatankantShurma during the search action containing details of unaccounted cash transactions of the assessee; The said ground of revenue is partly allowed based on the finding given in para 32-55. 9. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made u/s 69C of the Act of Rs.30,00,000/-on account of unexplained expenditure relating to payments made to Shri RavindraAdsureby adoption of Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cell phones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action containing details of unaccounted cash transactions of the assessee; The said ground of revenue is dismissed being protective addition in hands of assessee and ITAT has confirmed addition in hands of Vardha as discussed in para 32- ....
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.... assessee is dismissed based on the finding given in para 35. 5. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making a disallowance of Rs. 11,11,600/- u/s 37(1) of the Income Tax Act, 1961 by treating the genuine expenses as alleged non-genuine expenses, without considering the facts & circumstances of the case. The said ground of the assessee is partly allowed as per finding given in para 29. 6. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in restricting the additions to the extent of Rs.86,12,000/- on the basis of the peak balance of alleged receipts and payments noted in the diaries maintained by Shri Jiten Pujari, without considering the facts & circumstances of the case. The said ground of assessee is partly allowed based on the finding given in para 32-55. 7. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in invoking the provision of Section 115BBE of the Act, without considering th....
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....al No. Nature of Ground Findings 1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in admitting the additional grounds filed by the assessee regarding adoption of Theory of Peak Credit without appreciating the fact that the ground of applicability of Peak Credit Theory had not been submitted before the Assessing Officer during the assessment proceedings owing to which the Assessing Officer was deprived from verifying the merits of the submissions pertaining to adoption of Peak Credit Theory by the assessee; The said ground of revenue is partly allowed based on the finding given in para 32-55. 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not forwarding the submissions pertaining to the additional grounds relating to Peak Credit to the Assessing Officer so as to allow him an opportunity to verify whether the assessee has submitted documentary evidences that would establish that the entries of cash receipts have a direct nexus with the cash payments mentioned therein; The said ground of revenue is partly allowed based on the finding given in para 32-5....
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....of revenue is partly allowed based on the finding given in para 32-55. 7. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 16,60,000 /- made u/s 69C of the Act, in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 8. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made of Rs. 65,44,785/- u/ s 69A of the Act, on account of unexplained money by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from, residence of Shri Jiten Pujari, the Whatsapp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search actions. Th....
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....ng the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 13. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made of Rs. 5,00,000/- u/s 69A of the Act, on account of unexplained money by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from, residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search actions. The said ground of revenue is partly allowed based on the finding given in para 32-55. 14. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made of Rs. 15,22,000/- u/ s 69C of the Act, in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratanka....
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....ces of the case as well as in law, the Learned CIT(A) has erred in restricting the additions to the extent of Rs.64,49,115/- on the basis of the peak balance of alleged receipts and payments noted in the diaries maintained by Shri Jiten Pujari, without considering the facts & circumstances of the case. The said ground of assessee is partly allowed based on the finding given in para 32-55. 6. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in invoking the provision of Section 115BBE of the Act, without considering the facts & circumstances of the case. The said ground of assessee is allowed based on the finding given in para 56. 7. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in giving direction to the AO to calculate peak of all the transaction which are not related to assessee and/or not found at the premises of the assessee. The said ground of assessee is allowed based on the finding given in para 32-55. 8. On the facts and circumstances of the case as well as in law, the Learned ....
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....Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs.26,02,400/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. The said ground of assessee is partly allowed based on the finding given in para 32-55. 14. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs.2,28,500/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. The said ground of assessee is partly allowed based on the finding given in para 32-55. 15. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69C of the Income Tax Act, 1961 of Rs.37,00,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. The said ground of as....
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....ief to the assessee by accepting the submission of the assessee regarding application of Peak Credit to the cash receipts and cash payments without appreciating the fact that the additions were made on the basis of noting found in the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action containing details of unaccounted cash transactions of the assessee. The said ground of revenue is partly allowed based on the finding given in para 32-55. 4. Whether on the facts and circumstances of the case and in law, the Ld. CI(A) erred in not appreciating the fact that the assessee had failed to explain the sources of the cash receipts found recorded in the notebooks/ diaries seized from residence of Shri Jiten Pujari, found recorded in the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 5. Whether on the facts and circumstances of the case....
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....asis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 9. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made u/s 69A of the Act, of Rs. 98,41,416 in respect of unexplained money pertaining to Mumbai project by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 10. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs. 26,29,894 in respect of unexplained expenditure pertaining to Mumbai Project by adopting Peak....
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....f the case and in law, the Ld. CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs. 18,16,263 in respect of unexplained expenditure in respect of ledger titled "MV nair" by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 15. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs. 4,00,000 in respect of unexplained expenditure in respect of ledger titled MEP by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the fi....
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....App chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 20. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs. 1,89,848 in respect of unexplained expenditure pertaining to ledger titled "Misc" by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 21. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs. 70,903 in respect of unexplained expenditure pertaining to ledger titled "Medical Jaipur" by adopting Peak Credit without appreciating that the same had been made on the basis of....
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....se as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making an additions/disallowance in the assessment completed u/s 143(3) r.w.s. 153A of the Act without any incriminating documents being found during the course of search at premise of the assessee, without considering the facts and circumstances of the case. This ground of the assessee is dismissed based on the finding given in para 35. 2. On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as Learned Assessing Officer has erred in making an addition/disallowance on the basis of the evidence found at the premises of the third party. This ground of the assessee is dismissed based on the finding given in para 35. 3. On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as Learned Assessing Officer has erred in making an addition based on statement of Jiten Pujari without appreciating the fact that he himself has denied during cross examination before Assessing Officer about authenticity of data in seized diary. This ground of the assessee is dismissed based on ....
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....,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 10. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69C of the Income Tax Act, 1961 of Rs.60,16,200/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 11. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69A of the Income Tax Act, 1961 of Rs.98,41,416/- as alleged unexplained money, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 12. O....
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.... the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69C of the Income Tax Act, 1961 of Rs.4,00,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 18. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69C of the Income Tax Act, 1961 of Rs.39,03,982/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 19. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69C of the Income Tax Act, 1961 of Rs.45,00,000/- as alleged unexplained expenditure, under the peak working, without appreciating the ....
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.... to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 25. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69C of the Income Tax Act, 1961 of Rs.92,74,951/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 26. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/s.69C of the Income Tax Act, 1961 of Rs.4,00,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. AY 2019-20 Revenue's Ground of Appeal ITA No. 1688/Mum/2025 Ground No. Nature of Ground Findings 1 ....
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....ther on the facts and circumstances of the case and in law, the ld CIT(A) erred in deleting the disallowance u/s 37(1) of the Act made on account of bogus purchases of Rs 33,09,656/- from New Chamunda Steel and Balaji Steel and deleting addition u/S 69C in respect of commission of Rs.1,69 975/-for the reason that no incriminating material was found in respect of the above entity relevant to the instant assessment year even though the Id CIT(A) had confirmed the disallowance made in respect of the same entities while adjudicating on the Issue in appeal for AY. 2020- 21 The said ground of revenue is dismissed based on the finding given in para 31. 6 Whether on the facts and circumstance of the case and in law, the Ld CIT(A) erred in allowing relief to the assessee of Rs.67,35,760/- out of disallowance made u/s 37(1) of the Act amounting to Rs.2,89,73, 175/- relying on documents which were not produced before the Assessing Officer for verification during the assessment proceedings The said ground of revenue is dismissed based on the finding given in para 30. 7 Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in dele....
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....cumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69A of the Act, of Rs. 3,68,00,000/- on account of unexplained money by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from, residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search actions The said ground of revenue is partly allowed based on the finding given in para 32-55. 12 Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69A of the Act, of Rs. 4,70,00,000/- on account of unexplained money by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from, residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search actions The said ground of revenue is partly allowed based on the finding given in para 32-55. 13 Whether on the....
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....The said ground of revenue is partly allowed based on the finding given in para 32-55. 17. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69A of the Act, of Rs. 65000000/- on account of unexplained money pertaining to ledger titled Udaipur A/c and Rec'd by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from, residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search actions The said ground of revenue is partly allowed based on the finding given in para 32-55. 18. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs. 24,886 /- in respect of unexplained expenditure pertaining to ledger titled "Medical Jaipur" by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrie....
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....ts made to Shri RavindraAdsure by adopting Peak Credit without appreciating that the same had been made on the basis of notings found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. Assessee's grounds of appeal ITA No. 2162/Mum/2025 1 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making an addition /disallowance in the assessment completed u/s 143(3) r.w.s. 153A of the Act without any incriminating documents being found during the course of search at premise of the assessee, without considering the facts and circumstances of the case. This ground of the assessee is dismissed based on the finding given in para 35. 2 On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as Learned Assessing Officer has erred in making an addition/ disallowance on the ba....
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....on does not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 9 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs.24,78,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 10 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69A of the Income Tax Act, 1961 of Rs.30,56,000/- as alleged unexplained money, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 11 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition ma....
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....Tax Act, 1961 of Rs.30,00,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 17 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs. 15,54,30,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 18 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69A of the Income Tax Act, 1961 of Rs.6,50,00,000/- as alleged unexplained money, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. This ground of the assessee is partly allowed based on the finding g....
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.... of Appeal ITA No. 1689/Mum/2025 1. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in admitting the additional grounds filed by the assessee regarding adoption of Theory of Peak Credit without appreciating the fact that the ground of applicability of Peak Credit Theory had not been submitted before the Assessing Officer during the assessment proceedings owing to which the Assessing Officer was deprived from verifying the merits of the submissions pertaining to adoption of Peak Credit Theory by the assessee; The said ground of revenue is partly allowed based on the finding given in para 32-55. 2. Whether on the facts and circumstances of the case and in law, the Ld CITA) erred in not forwarding the submissions pertaining to the additional grounds relating to Peak Credit to the Assessing Officer so as to allow him an opportunity to verify whether the assessee has submitted documentary evidences that would establish that the entries of cash receipts have a direct nexus with the cash payments mentioned therein; The said ground of revenue is partly allowed based on the finding given in para 32-55. 3. ....
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....w, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs. 3,60,000/- in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 8. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69A of the Act, of Rs. 35,16,56,000/- on account of unexplained money by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from, residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search actions The said ground of revenue is partly allowed based on the finding given in para 32-55. 9. Whether on the facts and circumstances of the cas....
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....facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69A of the Act, of Rs 68,00,000/- on account of unexplained money by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from, residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search actions The said ground of revenue is partly allowed based on the finding given in para 32-55. 14. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs 41,70,410 /- in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 15. Wheth....
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....5. 19. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs 30,00,000/- in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 20. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs 12,50,000/- in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding give....
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....tly allowed based on the finding given in para 32-55. 25. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs 16,16,48,260 /- in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said ground of revenue is partly allowed based on the finding given in para 32-55. 26. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs 88,50,484 /- in respect of unexplained expenditure by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. The said groun....
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....Rs.31,95,386/- u/s 37(1) of the Income Tax Act, 1961 by treating the genuine expenses as alleged non-genuine expenses, without considering the facts & circumstances of the case. The said ground of assessee is dismissed based on the finding given in para 31. 7 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in restricting the additions to the extent of Rs.6,46,20,487/- on the basis of the peak balance of alleged receipts and payments noted in the diaries maintained by Shri Jiten Pujari, without considering the facts & circumstances of the case. This ground of the assessee is partly allowed based on the finding given in para 32-55. 8 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in invoking the provision of Section 115BBE of the Act, without considering the facts & circumstances of the case. This ground of the assessee is allowed based on the finding given in para 56. 9 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in giving direction to the AO to....
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....t the said transaction do not belong to the appellant. N.A. 15. This ground of the assessee is partly allowed based on the finding given in para 32-55. 15 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs.5,47,50,460/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 16 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69A of the Income Tax Act, 1961 of Rs.68,00,000/- as alleged unexplained money, under the peak working, without appreciating the fact that the said transaction does not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 17 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred ....
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....fficer u/ s.69C of the Income Tax Act, 1961 of Rs.30,00,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 23 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs.12,50,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 24 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs.12,11,967/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed ....
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....he assessment proceedings owing to which the Assessing Officer was deprived from verifying the merits of the submissions pertaining to adoption of Peak Credit Theory by the assessee; The said ground of revenue is partly allowed based on the finding given in para 32-55. 2 Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in not forwarding the submissions pertaining to the additional grounds relating to Peak Credit to the Assessing Officer so as to allow him an opportunity to verify whether the assessee has submitted documentary evidences that would establish that the entries of cash receipts have a direct nexus with the cash payments mentioned therein; The said ground of revenue is partly allowed based on the finding given in para 32-55. 3 Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in allowing relief to the assessee by accepting the submission of the assessee regarding application of Peak Credit to the cash receipts and cash payments without appreciating the fact that the additions were made on the basis of noting found in the notebooks/ diaries seized from residence of Shri ....
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....redit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. Cash found during search do not require separate addition as the same will subsume in the addition made on account of gross profit addition which is more than the cash found during search, hence this ground dismissed as discussed in para 56 above. 8 Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition made u/s 69C of the Act, of Rs 1,05,00,000 /- in respect of unexplained expenditure in respect of ledger account titled 'ShSsji a/c' by adopting Peak Credit without appreciating that the same had been made on the basis of noting found the notebooks/ diaries seized from residence of Shri Jiten Pujari, the WhatsApp chats and images backup retrieved from the cellphones of Shri Jiten Pujari and Shri Ratankant Sharma during the search action. This ground of the revenue is partly allowed based on the finding given in pa....
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....nd at the premises of the assessee. This ground of the assessee is allowed based on the finding given in para 32-55. 6 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs. 1,05,00,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 7 On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in considering the addition made by the Learned Assessing Officer u/ s.69C of the Income Tax Act, 1961 of Rs.6,54,000/- as alleged unexplained expenditure, under the peak working, without appreciating the fact that the said transaction do not belong to the appellant. This ground of the assessee is partly allowed based on the finding given in para 32-55. 58. Accordingly all the appeals filed by the revenue are dismissed and the assessee's appeals are partly allowed in the manner given....
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....ian 17000 25 14167 01.11.19 32 Ashok Kumar Electrician 14000 22 10267 33 Md. Mahtab Alam Gas Welder 15000 22 11000 19.09.19 34 MuÅŸtak Ansari Tyre Fiter 15000 22 11000 13.09.19 35 Ramsurat Roller Operator 17000 22 12467 01.11.19 36 Jagabandhu Swain Bolero Driver 16000 25 13333 15.09.19 37 Mohan Singh Driver 16000 22 11737 27.09.19 38 Sitaram Singh Driver 16000 22 11737 27.09.19 39 Naresh shah Driver 16000 22 11737 27.09.19 40 Shivji Singh Driver 16000 22 11737 27.09.19 41 Golekh Samantoray Driver 16000 14 7467 03.10.19 42 Upendra Swain Driver 16000 25 13333 03.10.19 43 Amit Kumar Sahso Driver 16000 25 13139 03.10.19 44 Anil Sahoo Driver 16000 25 13333 03,10.19 45 Radheshyam Driver 16000 21 11100 15.10.39 46 Rajkumar Driver 16000 21 11200 15.10.19 47 Shishpal Singh Driver 16000 21 11200 05.01.20 48 Rameshwar Driver 16000 21 $1200 05.01.20 49 Dinesh Thakur Driver 16000 22 11737 17.01.20 50 Sit Das Driver 16000 22 31737 11.01.20 51 Inglesh Yadav Driver 15000 22 11737 13.13.39 52 Ramskant Driver 15000 21 11700 02.02.20 53 Manbir Singh Driver 16000 21 11100 09.03.20 54 Anil Kumar Driver 16000 21 11200 01.11.19 55 Satyaveer Singh Driver 16000 21 11200 05.01.20 ....
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.... होगी वो पैसा निकाल देगा। पà¥à¤°à¥¦66 महोदय कृपया बतायें कि 13/7/2020 को वचि की कारà¥à¤¯à¤µà¤¾à¤¹à¥€ के दौरान उसके लॉकर से कà¥à¤¯à¤¾ बरामद हà¥à¤† था। उसकी जानकारी देवें। 30 महोदय, इसवी Exact जानकारी मà¥à¤à¥‡ जूही है। पà¥à¤°.67 महोदय शà¥à¤°à¥€ जितेन पà¥à¤•à¤¾à¤°à¥€ ने अपने बयानों में बलता है ....
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....लिस में दे जाते थे, जिसे में लॉकरà¥à¤¸ में बà¥à¤°à¤¾à¤¤à¤¾ था । पà¥à¤°o68 महोदय में आपको शà¥à¤°à¥€ जिले पà¥à¤œà¤¾à¤°à¥€ में 7/10/2021 को दिये गये बयानों की पà¥à¤°à¤¤à¤¿ दिला रहा है। जिलेमें पà¥à¤°à¤¶à¥à¤¨ संखà¥à¤¯à¤¾- 41242 (Pof No. 11) पर शà¥à¤°à¥‡ जिरà¥à¤¤à¤¨ पà¥à¤œà¤¾à¤°à¥€ ने कà¥à¤› पारà¥à¤Ÿà¤¿à¤¯à¥‹à¤‚, जो कि आपकी Sub contorehr थी से बà¥à¤• Conh पà¥à¤°à¤¾à¤ª....