9911796707
TMI Blog2015 (3) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to certain amounts originally added in the course of block assessment proceedings by the Assessing Officer (AO). 2. The brief facts are that the assessee's premises were searched pursuant to which notice under Section 153A of the Income Tax Act, 1961 (hereafter referred to as "the Act") was issued. The assessee, in response, filed his block return declaring undisclosed income to the tune of Rs. 26,70,540/-. Notice in the course of these proceedings was issued and subsequently on 31.05.2005, the AO framed the assessment. This order included addition in respect of the sum of Rs. 107 lakhs under Section 69C of the Act pertaining to unexplained purchase of residential property. Other amounts too were added. The assessee's appeals w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support the assessee's plea with respect to having paid the amounts in cash. 6. The CIT(A) in his order noted that the AO's order reflected the examination of only one document. The CIT(A), therefore, after analyzing the other documents, i.e. A-1 to A-39 which emanated from the office premises of the company in which the assessee had substantial interest, i.e M/s. Regal Flats Private Ltd as well as documents A-12 and A-20, took note of the entirety of the transactions and inferred as follows: "7.7 The assessing officer has taken the statement on oath of Mr. Arjun Khosla and his denial regarding payment of Rs. 1 crore cash is perfectly in line with this type of transaction being recorded all over the country. His statement regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discussed above), impounded in course of survey u/s 133A cannot be ignored by the Department. The Assessing Officer should have examined all the papers from Annexure A-1 to A-39 before giving his finding in the assessment order since material found and impounded from the office premises of the company M/s. Regal Flats Pvt. Ltd. provide substantive evidence, the same should be taken as true in accordance with Section 132(4A) of the Income Tax Act." 7. The ITAT noticed that the documents presented before it which were part of the record before the CIT(A) showed that a cash receipt of Rs. 1 crores was reflected in the books along with sale of the Golf Links property and on 24.03.2003, there was an entry on the credit side of the cash book reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t company although Shri Khosla who is the buyer of that property is denying about any payment in cash to the assessee or to that company. It is to be noted that when a person has made payment out of his unaccounted cash, he will not accept it and hence the denial by Shri Khosla that he has not made any cash for purchase of property in question cannot be accepted as a gospel truth. Now, the question is whether that money received by M/s. Regal Flats Pvt. Ltd. was used by the assessee for making this payment of Rs. 107 lakhs for purchase of property. As per the regular cash book of that company, i.e. M/s. Regal Flats Pvt. Ltd. which was impounded by the department in the course of survey on 13.5.2003, the entries are appearing in the cash boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of Rs. 98 lakhs." 8. In the course of hearing, it was sought to be highlighted that these findings are contrary to the statements of purchaser of the Golf Links property - Arjun Khosla. It was submitted that the statement had to be accepted since it was made by a third party unconnected with assessee. 9. We are of the opinion that given the fact-intensive nature of the matter, and - as noted by the CIT(A) - the rare instance where cash transactions were indeed reflected in the books of one of the assessees which had an intimate connection with the present assessee, any further enquiry would involve more weighing of evidence rather than interpretation of law. Barring exceptional cases where the findings are based on no eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing before the ITAT relied upon the documents, one of which clearly stated that the figure mentioned was an estimate. The ITAT noted that in some instance, the word, "paid" and in some cases, the word "estimate" and "short receipt" had been recorded. In one case, an explanation for the sum of Rs. 5 lakhs existed but was not legible and yet in another case, the noting was "diff. paid excess to". As against these, for the sum of Rs. 6.93 lakhs, the noting was "settled on 08.07.1998". The ITAT, therefore, observed that there was no clarity whether these were payments or receipts by the assessee. It also noted that in the absence of dates mentioned in the concerned pages of the seized notes and in view of the note "old account" at the end of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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