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TMI Blog2014 (8) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... had filed his return of income on 06/11/2007 declaring income of Rs. 34,75,240/- besides agricultural income of Rs. 2,00,000/-. A search and seizure operation was conducted in case of the assessee and other assessees in the group on 20/08/2009. Simultaneously, a survey was conducted on the business premises of M/s Bollineni Ramanaiah Memorial Hospitals Pvt. Ltd. (in short "M/s BRM Hospitals Pvt. Ltd.")wherein certain incriminating material was found. As a consequence of search operation, notice u/s 153A was issued to the assessee calling for return of income. In response to the said notice assessee filed a return of income declaring income of Rs. 66,75,230/- besides agricultural income of Rs. 2,00,000/-. 4. During the assessment proceeding Assessing Officer noticed that during the survey conducted in the business premises of M/s BRM Hospitals Pvt. Ltd. a loose sheet was found showing payment of Rs. 1,80,56,000/- to the assessee by M/s BRM Hospitals Pvt. Ltd. and repayment by assessee to the tune of Rs. 7 lakhs. However, on examining the books of account of M/s BRM Hospitals Pvt. Ltd. no entry indicating such payment was found. Assessing Officer, therefore, called upon the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ..... (iii) Sec.2(7) defines an assessee which means a person by whom any tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceeding under this Act has been taken for the assessment of his income...................... . (iv) Sec.:?(9) says what an assessment year means i.e., the period of 12 months commencing on the first day of April every year. (v) The provisions of Sec.153A are re-produced for ready reference as below: "Notwithstanding anything contained in section 139, section 147, 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 of 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 ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the initial appearing in the loose sheet bears the date 25/03/2006. Alternatively, the learned AR submitted that if the amount is to be treated as income of the assessee, it needs to be adjusted against the additional income declared by the assessee and other family members. In support of his contentions, learned AR relied on the following decisions: 1. Jagmohan Singh Arora Vs. DCIT, 101 ttj 682 (Mum.) 2. Eagle Seeds Biotech Ltd. Vs. ACIT, 100 ITD 301 3. S. Kuppuswami Mudaliar Vs. CIT, 51 ITR 757 (Mad.) 4. CIT Vs. Guruswamy Nadar, 149 ITR 127 5. Gyan Kumar Agarwal Vs. ACIT, 146 TTJ 334 (Hyd.) 9. The learned DR on the other hand justifying the addition sustained by the CIT(A) submitted that the impounded document clearly indicate payment received by the assessee from the company. 10. We have considered the submissions of the parties and perused the material on record as well as the orders of the Revenue authorities on the issue. We have also examined the decisions relied upon by the learned AR. Undisputedly, the entire basis for addition of the amount in dispute is the document impounded during the survey operation in the business premises of M/s BRM Hospitals Pvt. Ltd. A re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch operation certain loose sheets were found and seized from the residence of assessee which were marked as Annexure A/BBR/02. Page 37 of the seized material contained certain notings relating to amounts advanced to different persons. In course of the proceeding when the assessee was asked to explain, he was unable to explain and offered to declare the amount of Rs. 32 lakhs as additional income in AY 2007-08. Accordingly, amount of Rs. 32 lakhs was considered as assessee's income for AY 2007-08. However, on verification of the reverse side of page 37 (seized material) it was noticed that there was calculation of interest till 13/05/2009 amounting to Rs. 13.86 lakhs on the advance of Rs. 21 lakhs to Raji. It further revealed that interest was calculated at 2% per month for 33 months from 09/2006 to 05/2009. Since the assessee had accepted the advances given as noted in the loose sheet and offered it as additional income, the Assessing Officer opined that the assessee has also received interest as per the notings in the same seized material and accordingly quantified accrued interest for each of the assessment years under dispute. 13. Being aggrieved of the additions made assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch interest. It was submitted that in absence of any corroborative evidence to show that assessee has earned interest, no addition can be made by simply relying upon some notings made in a loose sheet which is not initialled. In support of such contention, learned AR relied upon the following decisions: 1. CIT Vs. Excel Industries Ltd., 358 ITR 295 (SC) 2. CIT Vs. Shri Goverdhan Ltd., 69 ITR 675 (SC) 3. CIT Vs. Nandram Hanatram, 103 ITR 433 4. Kaluh Devadattam Vs. UOI, 49 ITR 165 (SC) 5. CIT Vs. Bikaner Trading Co. Ltd., 78 ITR 12 (SC) 15. Learned DR submitted that when the assessee is accepting the investments mentioned in the seized material there is no reason why the interest component mentioned in the same seized material should not be held to be correct. It was therefore submitted, the CIT(A) was justified in sustaining the additions. 16. We have considered the submissions of the parties and perused the orders of the Revenue authorities as well as other materials on record. On perusal of the seized material, a copy of which is at page 79 of assessee's paper book, shows that it contains notings of certain amounts on specific dates against the name of some persons. One o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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