TaxTMI 
TaxTMI 
2025 (4) TMI 1905
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....e AY 2011-12 3. The Ld. CIT(A) has erred in law and on facts in not appreciating the fact that though the assessee claims the entries of Rs. 2,50,91,260/- has no affiliation to him, this office underscores that the case was reopened based on the inquiry report from Assistant Director of Income-tax, Jamnagar, the five diaries impounded from Late Shri Chhotalal Doshi and the statement under oath of Shri Dharmendra Doshi, which establishes beyond doubt that the entries of Rs. 2,50,91,260/- are in fact pertaining to the assessee. 4. The Ld. CIT(A) has erred on facts and in law in not appreciating the fact that the AO has irrefutably demonstrated the connection between the assessee and the entries in question. 5. On the basis of the facts and circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer. 6. That the revenue craves leaves to add, amend, alter or withdraw any ground of appeal. 7. It is therefore prayed that the order of the CIT(A) may kindly be set aside and that of Assessing Officer be restored. 2. The assessee, an individual engaged in the business of manufacturing and trading of brass p....
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....legations and without substantially establishing any connection, our case is reopened and addition was made. 2(b). The Revenue was of the belief that the income chargeable to tax has escaped assessment. It is also a fact that the said information provided by the ADIT was completely relied upon by the Ld. AO and made addition of Rs. 2,50,91,260/-. On the other hand, the case of the assessee is this that they have not carried out any transactions with said Late Shri Chottalal Doshi or his family neither there is any evidence available with the Revenue to establish the said fact as of the further case made out by the assessee. In fact, in order to save the skin of Late Shri Chottalal Doshi from taxation of his unaccounted money and/or unaccounted transactions, these allegations against the assessee was made. The assessee further requested to provide cross examination of Shri Dharmendra Doshi on the basis of whose statement, the case was reopened and addition was made, which was further denied. Under these circumstances, as no opportunities have been given to the assessee to cross examine the said party, the addition on account of unexplained cash credits in the income of A.Y. 2011-....
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....tted that all old cases were set aside. (ii) On the other side, the Ld. AR of the assessee has submitted that this is a case of 11-12, while the investigation was taken place in 2014 and the ADIT report dated 24-03-2015. The person for whom the search was conducted was already expired in 2010. The statement of son of the Assessee recorded. The Ld. AR Relied on following Judgement : * Shri Mukeshkumar Vrajlal Akbari at ITAT Rajkot Bench dated 21- 09-2022. * Shri Kanjibhai Tapubhai Patel at ITAT Rajkot Bench dated 25-01- 2023. * Anilkumar Pershottambhai Tala at ITAT Rajkot Bench dated 20-09- 2024. 4.1 We have heard the department and the assessee and Perused the material available on record and also Perused the order Ld. CIT dated 21-08-2024 and order of AO dated 28-11-2016 that the coordinating bench has decided in the case of Shri Kanjibhai Tapubhai Patel vs ITO, ITA No. 103 to 105/Rjt/2021 and the same are reproduced. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record. We have further considered the judgment in the case of Shri Kanjibhai Tapubhai Patel vs I....
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.... claims have been analysed. It is a fact that the said Dharmendra Doshi is a Hawala operator and it is unlikely that he would be knowing all the clients who availed his services. He is also not expected to know the persons who have deposited the cash in their bank accounts except for on whose behalf it is deposited, as the same needs to be withdrawn and be given to the beneficiaries. In such Hawala operations, it is not possible for all the records to be maintained in the manner in which the appellant seeks now. In view of the peculiar manner of Hawala operations, the various claims made by the appellant are not acceptable. Therefore, there is a reasonable probability that the said transaction pertains to the appellant based on the entry in the diary and it is also not mandatory under the Income Tax that the evidence should be beyond doubt to assess a transaction. Considering the same, the addition made is upheld and the ground nos. 2 & 3 are dismissed. 5. Before us, the counsel for the assessee submitted that that the said Late Shri Chhotalal V. Doshi who was a Hawala operator has expired and the entire addition was made on the basis of statement of son of Late Shri Chhot....
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....ations made by the AO and CIT in their respective orders. 6. We have heard the rival contentions and perused the material on record. We observe that in the instant set of facts, there is no corroborative evidence has been placed on record to show that it was the assessee who had deposited the said amount in the bank accounts operated by Late Shri Chhotalal V. Doshi, who was a Hawala operator. The entire additions were made only on the basis of statement recorded of son of Late Shri Chhotalal V. Doshi, who has stated that he had written the name in the diary so maintained by him, on the basis of instructions of his father. Apart from this, no evidence has been placed on record to substantiate that the money deposited in bank account maintained by Late Shri Chhotalal V. Doshi, belonged to the assessee. We observe that even the Ld. CIT(A) while passing the order has made following observations: "The various claims have been analysed. It is a fact that the said Dharmendra Doshi is a Hawala operator and it is unlikely that he would be knowing all the clients who availed his services. He is also not expected to know the persons who have deposited the cash in their bank accounts ....