9911796707
TMI Blog2023 (4) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... rces of income include interest, remuneration and share of profit from these partnership firms. On 23.01.2018, a search and seizure operation under Section 132 of the Act was carried out at the business premises as well as residential premises of MG Oils Group of Khandwa including the assessee and other concerns/ business associates. Thereafter, notices under Section 153A of the Act were issued for the A.Y. 2012-13 to 2017-18 and notice under Section 143(2) of the Act was issued for the A.Y. 2018-19. The incometax return of the assessee for the A.Y. 2018-19 was filed on 26.10.2018 declaring total income at Rs.38,33,950/-. The Ld. AO during the course of assessment proceedings observed that some suspicious messages were found from the mobile phone of the assessee and his brother, Shri Vinod Bansal on the basis of which the Ld. AO reached to a conclusion that the assessee was involved in hawala transactions. The Ld. AO worked out an amount of Rs. 2,08,10,930/- on the basis of photo of those suspicious messages which was inventorized at Page No. 11-29 of LPS-10 made addition of Rs. 2,08,10,930/- to the total income of the assessee by treating it as undisclosed income under Section 69 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee that messages found from the mobile phone of the assessee were related to SHARMAJI/ PANDITJI of Delhi with whom the assessee had business relationship in connection with sale of oil. He further argued that the assessee was not engaged in carrying out any oil business in his individual capacity but the partnership firms, M/s MG Oils and M/s Vinod Industries, wherein the assessee represented as one of the partners, were engaged in oil business. The Ld. Counsel argued that if the amount received and mentioned in the messages was linked with the sale of oil, then, it ought to be appreciated that the entire amount of sale of oil was duly recorded in the books of accounts of the partnership firms, M/s MG Oils and M/s Vinod Industries and consequently, there was no justification for making separate addition to the total income of the assessee on account of amount worked out on the basis of alleged suspicious messages found from the mobile phone of the assessee. The Ld. Counsel further demonstrated that the Ld. AO herself while passing the assessment order in the case of M/s MG Oils observed that cash deposited in the bank accounts of the alleged suspicious firms (i.e. buye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the ownership of the amount as received in the messages were never belonging to him. The assessing officer however, rejected the contention of the appellant as explained in the post search proceeding. The appellant during the course of search assessment as well as appellate proceeding has clarified that these messages related to Shri Sharma ji ( Pandit Ji ) of Delhi with whom the appellant having regular business transactions of sale of Oil. The appellant is not engaged in any oil business in his Individual capacity but the partnership firm M/s M G Oil and M/s Vinod Industries in which the appellant represent as a partner engaged in the Manufacturing and trading of oil. During the course of scrutiny assessment as well as appellate proceeding it was clarified that some of the customers of M/s M G Oils sent cash directly to the appellant and the said amount of cash was deposited by the appellant or by the staff of M/s M G Oils in their bank account and therefore the said amount was transferred in the bank account of M/s M G Oils against sales. It was further explained that the nature of cash as received by the appellant was duly explained to the assessing officer and the same wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignored, the correct amount therefore calculated which comes to Rs 89,33,930/- only. If the appellant fail to explain the correct nature the correct re-course with the assessing officer was to tax the net profit and not the entire amount as added by her to the total income of the appellant. In the present case in hand, the appellant is not engaged in any business activities in his Individual capacity. The assessing officer and authorised officer during the course of search and post search inquiry not found any thing about any business activities carried out by the appellant. The appellant during the course of search explained that he has business connection of oil sale with Pandit ji of Delhi. Oil business was carried out by the firm M/s M G Oil and M/s Vinod Industries. It was also noticed by the assessing officer that cash was deposited in the bank account of few of the customers by the appellant or by the staff of M/s M G Oils which itself proved that entire amount of cash as received by the appellant as noticed through the mobile messages related to the customers of M/s M G Oils to whom oils were sold by the firm. The sales as executed to all the customers were duly accounted f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansactions as well wherein the Ld. AO added the same amount twice or even thrice to the total income of the assessee which in our opinion, was not justified. The assessee prepared a working on the basis of these messages wherein the correct amount after removing the double effect of various messages linked to the same transaction and also after removing the effect of messages containing the reference of the amounts which were received against sale of oil by M/s MG Oils came to Rs. 89,33,930/- as against the amount of Rs. 2,08,10,930/- worked out by the Ld. AO. Having regard to the particular fact, considering the working made by the assessee, we find that the amount in dispute should have been Rs. 89,33,930/- only as against the amount of Rs. 2,08,10,930/- added by the Ld. AO to the total income of the assessee. 10. Further, we find strong force in the contentions of the Ld. Counsel that messages found from the mobile phone of the assessee were related to SHARMAJI/ PANDITJI of Delhi with whom the assessee had business relationship in connection with sale of oil. It can be seen that the assessee was not engaged in carrying out any oil business in his individual capacity but the par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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