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TMI Blog2023 (4) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... s directed to verify the same. If the cheque amount has also been refunded and no income has accrued to the assessee from this transaction then this addition would not be sustainable in the hands of the assessee. Grounds stand allowed for statistical purposes. Unexplained Cash Receipts out of Jewel Loans - As assessee has received certain loans by pledging the jewellery of its various employees. The assessee could not explain the difference of receipts and payments and accordingly, additions for differential amount has been made in all the years. Before us also, the assessee is unable to substantiate / explain the difference. Therefore, the impugned additions stand confirmed in all the years. Unaccounted cash receipts - certain payment is stated to be made directly by STN to landowners which are not found recorded in the books of accounts. The assessee has submitted that these transactions have been recorded in the excel sheets to keep track of the commission payment. However, the assessee could not substantiate the same during assessment proceedings. Considering the principal of natural justice, we deem it fit to provide another opportunity to the assessee to substantiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any cash, gold, silver, diamond, jewellery, valuable article or thing or documents of immovable property, promissory notes, cheques, drafts, bills of exchange, actionable claims etc and since the sin qua non for a search assessment is the recovery of cash etc during a search and further since such recovery is absent here the proceedings ought to have been closed as infructuous. 2. The learned Commissioner (Appeals) ought to have appreciated the fact that the excel sheets that were recovered during the search were only loose sheets which have no evidentiary value regarding concealment of income and hence no search assessment can be completed under section 153A solely relying upon loose sheets. 3. The learned Commissioner (Appeals) ought to have appreciated the fact that the search party did not come across any books of accounts, bank statements etc and hence section 153A has no application to the assessee's case. 4. The learned Commissioner (Appeals) ought to have appreciated the fact that the procedure laid down under sec153A permit a complete review of all the facts and evidences already considered in the completed assessments prior to the search along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave appreciated the fact that the entries in the excel sheets represented details collected by the assessee in respect of transactions that had taken place among various customers of the assessee in land related matters and such details were collected by the assessee without any verification of the genuineness by his own efforts for prevention of collusive activities among the assessee's customers for cheating the assessee of the commission due to the assessee. 4.The learned Commissioner (Appeals) ought to have appreciated the fact that the sum of Rs.1,00,55,000 represented only a part of the sales turnover and the entire turnover cannot be a profit for the business but only a percentage of the turnover represented income element involved in the receipt of Rs.1,00,55,000. 5. The learned Commissioner (Appeals) erred in confirming the entire turnover instead of directing the Assessing Officer only to estimate the income imbedded in Rs.1,00,55,000 at the net profit rate as admitted by the assessee in respect of the admitting turnover. 6. The learned Commissioner (Appeals) erred in treating the difference in jewel loans received and paid without examining the owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premises of the Managing Director. 16.The assessee craves leave to file additional grounds and or additional evidences as the hearing progresses in case a need arises for the same. 17.The assessee under the circumstances submits that the Hon ble Tribunal maybe pleased to annul the assessment under section 153A under law or in the alternative delete all the additions as unsustainable for elaborate reasons stated in the grounds of appeal restricting the additions to only the profit element imbedded in the cash transactions by way of assessee's portion of his commission. As is evident, the assessee assails the validity of assessment proceedings on legal grounds. The assessee also assails the quantum additions on merits. 2. The Ld. AR advanced arguments supporting the case of the assessee. The Ld. AR submitted that in the absence of incriminating material, the impugned additions are not sustainable in law. The Ld. AR placed on record financial statements of the assessee and urged that the transactions as found during the course of search operations were not carried out by the assessee. The Ld. CIT-DR, on the other hand, controverted the arguments of Ld. AR and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in cash which was not accounted for in the books of accounts. The same was admitted in the recorded statement. It was submitted that the project had not materialized till date and the cash of Rs.100.55 Lacs belonging to GHPL was repaid to them during 2012. However, in the absence of any documentary evidences, the explanation furnished by the assessee was rejected and the amount of Rs.100.55 Lacs was added to the income of the assessee as unaccounted receipts. 4.2 The Ld. CIT(A) endorsed the action of Ld. AO on the ground that recordings of transaction were not random. The entries indicate date, purpose, mode of transactions etc. in an orderly fashion and the same was not dumb document. Accordingly, the additions were confirmed against which the assessee is in further appeal before us. 5. Unexplained Cash Receipts of Rs.2.06 Lacs out of Jewel Loans 5.1 This addition was made since the loose sheet contained details of jewel loans availed by the different employees of the assessee during financial years 2010-11 to 2014-15. The assessee received said loan by pledging the jewels of its various employees on various dates. Since the assessee could not explain the same, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: - Sir as explained earlier, the noting in the excel sheets contain transactions with respect to many parties. The excel sheet contains transactions in which the money was routed through us and also the transactions in which the money was paid directly by the purchaser to the respective landlords. We keep noting of both type of transactions. However, we are at present not in a position to differentiate the same based on any data or with the help of the narrations as mentioned in the said excel sheet. Moreover, the said excel sheet is not our books of accounts and hence the unexplained amount of Rs.11,21,77,750 cannot be treated as the income of KPPL. I also wish to state that further time may be granted to collect the relevant materials and substantiate the nature of transactions which at present we are not able to explain clearly Since the assessee could not explain the source of such receipts, the same was brought to tax as unexplained cash receipts by the assessee. The same resulted into an addition of Rs.1121.77 Lace over AYs 2011- 12 to 2015-16. 7.2 The Ld. CIT(A) confirmed the impugned addition against which the assessee is in further appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n cash. If the project had not materialized and the advances have been repaid in cash, the same would not constitute the income of the assessee. In such a case, the assessee would have refunded the cheque amounts also. The Ld. AO is directed to verify the same. If the cheque amount has also been refunded and no income has accrued to the assessee from this transaction then this addition would not be sustainable in the hands of the assessee. In any other case, Ld. AO may re-adjudicate the issue with a direction to the assessee to substantiate the fact that the amount was ultimately refunded to GHPL and no income accrued to the assessee, on this count. The corresponding grounds stand allowed for statistical purposes. 11. Unexplained Cash Receipts out of Jewel Loans It emerges that the assessee has received certain loans by pledging the jewellery of its various employees. The assessee could not explain the difference of receipts and payments and accordingly, additions for differential amount has been made in all the years. Before us also, the assessee is unable to substantiate / explain the difference. Therefore, the impugned additions stand confirmed in all the years. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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