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TMI Blog2016 (1) TMI 1074X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of the AO along with the confirmations, however, the AO had brushed aside the same. Accordingly, we direct the AO to delete the addition of ₹ 1,30,00,000/- (Rs.1,20,00,000+Rs.10,00,000/--), being amount received by Tropical Investment and Securities Pvt. Ltd. through account payee cheques from Shashank Patel and his family members. In respect of balance amount alleged to be received from Shashank Patel in cash has not been enquired by the AO. In the interest of justice and fair-Play the balance addition of ₹ 3,14,16,332/- is restored back to the file of the AO for deciding afresh after making full enquiry from Shashank Patel and M/s Tropical Investment and Securities Pvt. Ltd.. We direct accordingly. - Decided in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89,632/-, making certain disallowances. During the year under consideration the assessee was director of various companies, including Tropical. He was occupying an office at Bombay Mutual Chamber, Fort, Mumbai, from where he was looking after affairs of various concerns. The premise was not owned by the assessee and was owned by M/s. Western Press P. Ltd., in which employees of various companies, including Tropical, were functioning. A search and seizure action u/s. 132 of the Act was carried out at Bombay Mutual Chamber, Fort, Mumbai wherein the assessee was occupying office space, on 30.05.2008. This search was essentially in consequence to the main search carried out against one Mr. Vinod Faria. In the course of the search proceedings, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le doing so, he made an allegation that the assessee had failed to provide explanation/ evidence in his defense. The assessee procured confirmation from Shashank Patel and his associates, in which Mr. Shashank Patel confirmed that he did not have any transaction with the assessee in his individual capacity but had transactions with Tropical. The AO brushed aside assessee's contention as well as confirmation filed by Shashank Patel and his associate and added the amount of RsAA4 crores in assessee's income. 4. By the impugned order the CIT(A) confirmed the action of the AO, against which the assessee is in further appeal before us. 5. It was contended by Id. AR that the loose paper is a dumb document. In any case, it can be int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to appreciate that if the receipt of cheques amounting to ₹ 1.30 crores was reflected in the accounts of Tropical, how could the same amount be added in the hands of the assessee. Further, there is nothing in the seized material to indicate that the assessee was in receipt of such amount. He contended that the CIT (A) rejected confirmation filed of Mr. Shashank Patel and his family members cryptically and out rightly, without making any inquiry. The A.O. and the CIT(A) failed to appreciate that the assessee was not related to Mr. Shashank Patel and, therefore, there was no reason for Mr. Pate, to give any false confirmation for which he could have faced prosecution. 6. In view of the above submission, Id. AR vehemently argued th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties at the time of receipt of money were filed with AO. It was also brought out that the above amounts and transactions were reflected in the Books of Accounts of Tropical. During the course of hearing our attention was also drawn on item No.1 of the seized material In the left hand column it is mentioned Shashank Patel Group (CHEQ) ₹ 1 ,20,00,000/-. This ₹ 1,20,00,000/- is in respect of following amounts received by Tropical which is reflected in ledger Amount accounts of Tropical for the year ended 31/3/2012. This was filed before the AO vide letter dt.04. 11.09. 9. On the very same seized paper, in the left hand corner there is item CHEQ REC 18.06.2001 sum of ₹ 10,00,000/- is appearing. This is in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in respect of entries reflected in the books of account of Tropical and given by cheque by Mr. Shashank Patel and his family members. Receipt of the amount by Tropical Investment and Securities Pvt. Ltd. through cheque from Shashank Patel and his family members, cannot be treated as income of the assessee. The fact that Tropical Investment and Securities Pvt. Ltd. was also assessee with the same assessing officer, has not been denied anywhere. All the above facts were brought to the notice of the AO along with the confirmations, however, the AO had brushed aside the same. Accordingly, we direct the AO to delete the addition of ₹ 1,30,00,000/- (Rs.1,20,00,000+Rs.10,00,000/--), being amount received by Tropical Investment and Securiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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