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2024 (1) TMI 942 - ITAT MUMBAIAssessment u/s 153A - Addition u/s 68 - as per AO there was a seizure of incriminating material and failure of the assessee to prove the genuineness of the transaction - CIT(A) deleted addition - HELD THAT:- We find that the assessee has offered the income arising from the above agreement reconciled with the reconciliation statement for the respective years. The facilitator agreement is signed by the assessee, which Omkar Developers is part of the regular books of accounts and records of the assessee supporting his Shri Sachin Jagdish Prasad Joshi; A.Y. 2017-18, 19-20 & 20-21 original return filed. On looking at question which clearly shows that when the assessee was asked about his transactions with Omkar Realtors Pvt. Ltd, assessee explained the nature of transaction and himself, produced the above agreement along with the statement. Assessee categorically stated that he has already included the above sum in his total income. In the remand report submitted by the learned Assessing Officer, it is clear that in the Panchnama, it is stated that no document or accounts were found and seized. Further, the remand report also says that addition is made in the hands of the assessee only based on facilitator agreement and receipt reconciliation. No evidences were found as stated in the order of the learned Assessing Officer, which even remotely suggested that the income offered by the assessee is not correct. Even in the assessment proceedings, no material is brought on record by the learned Assessing Officer. In view of the appellate facts, we do not find any infirmity in the order of the learned CIT (A) in holding that in an unabated assessment order i.e. A.Y. 2017-18, in absence of any incriminating material found during the course of search, no addition could have been made. As following the decision of Honourable Supreme court in case of Abhisar Buildwell Pvt Ltd [2023 (4) TMI 1056 - SUPREME COURT] all the grounds of the appeal of the learned Assessing Officer are dismissed. Addition u/s 68 - The paper books filed by the assessee clearly shows that the assessee has discharged his onus by producing confirmation from the parties, agreement of the services rendered, tax invoices, copies of board meetings minutes for the proof of services. Thus, according to him, the assessee has discharged his onus of showing the nature and source of the receipts, if the AO is not satisfied with the same, he should have at least carried out minimum enquiries to throw onus back to the assessee. There is not a single enquiry carried on by the AO to disbelieving the nature and source of the credits shown by the assessee. The LD AO did not even care to examine the parties who have paid these sums to the assessee and whether the above sum is allowed as deduction in the hands of such parties / companies. Naturally, if the claim of revenue is that no services are rendered by assessee to those parties; naturally, such expenses incurred by those parties are also not incurred by them wholly and exclusively for the business purposes of those companies, and it is not allowable to them. In view of this, we find that assessee has discharged its initial onus cast upon him - No merit in the appeal of AO. Decided in favour of assessee.
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