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TMI Blog2024 (10) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... mise of the accomplice of the assessee Shri Shobhit Sinha sister s residence at Lucknow on 03-12-2016. We have observed that the AO has made the addition on the basis that the assessee had helped Shri Rajeev Singh Kushwaha in cash deposits by flouted the banking norms. AO has made the addition only on mere assumption and not on any material recovered during search and seizure. In the absence of the supporting evidence additions made by the AO is not sustainable. The appeal of the assessee is liable to be allowed. - Sh. S. Rifaur Rahman, Accountant Member And Sh. Sudhir Kumar, Judicial Member For the Appellants : Sh. C.S. Anand, Advocate, Ms. Sarthak Upadhyay, Advocate, Sh. Vaishnavi Yadav, Advocate For the Respondent : Sh. B.S. Anand, Sr. DR ORDER PER SUDHIR KUMAR, JM: The above captioned appeal by the assessee is directed against the order of the NFAC/Commissioner of Income Tax (Appeals), Delhi [hereinafter referred to as CIT(A) ], vide order dated 17.03.2023 pertaining to A.Y. 2017-18 arises out of the order passed by the Assessing Officer dated 30.12.2018 u/s 143(3) of the Income Tax Act, 1961 [hereinafter referred as the Act ] 2. The assessee has raised the following grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain documents belonging to the assessee were sized. The assessee has filed the return of income declaring total income of Rs 6,55,060/- on 29-06-2017 for the A.Y. 2017- 18. A notice u/s 143(2) of the Act was issued and another notice u/s 142(1) of the Act was issued with questionnaire. The AR of the assessee has attended the proceedings and furnished certain details. The AO has made the addition of Rs 1700000/- on account of unexplained income u/s 69 r.w.s 115 BBE of the Act and Rs 60,00,000/- on account of the earned commission from the Rajeev Singh Kushwaha u/s 69 A r.w.s 115BBE of the Act. Aggrieved by the order of the AO the assessee has preferred the appeal before the Ld CIT(A) who vide his order dated 17-03-2023 partly allowed the appeal against which the assessee is in appeal before us. 4. The Ld. AR has stated that a search and seizure action u/s. 132 was carried out on 25.11.2016 at the residential premises of the assessee located at C-34, IInd Floor, Vivek Vihar, Delhi and also at the bank locker no. 98 with Axis Bank, Kashmere Gate Branch, Delhi. The AO had recorded his observations that cash of Rs. 500000/- was given to assessee by the Rajeev Singh Kushwaha through Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ajeev Singh Kushwaha through Raj Kumar Sharma in appellant's cabin in Axis Bank Kashmere Gate branch. i) On 12/11/2016 the commission was increased to 2% from 1% and accordingly after depositing Rs. 6 Crores cash in fictitious companies/firms accounts Rs. 12 lakhs was again given to the appellant in his cabin by Shri Rajeev Singh Kushwaha. iv) From 13/11/2016 it was mutually decided that by the appellant and Shri Shobhit Sinha that commission would be given in the form of gold. On 20/11/2016 Mohit Garg had given 1 Kg gold bar each to you and Shri Shobhit Sinha. 7.2 The submission of the appellant and the facts of the case has been considered. Following facts emerges from the facts on record and from the investigation done by the Income Tax Department and Enforcement Directorate: i. Shri Mohit Garg, Shri Devendra Kumar Jha and Shri Raj Kumar Sharma were caught with cash of Rs. 3.70 Crores (approx.) in demonetized currency on 22/11/2016 by the SHO, P.S, Kashmere Gate, Delhi, later on handed over to the Income Tax Department. From the statements recorded, it was found that they were regularly depositing cash in demonetized currency in the bank accounts of fictitious entities manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ev Singh Kushwaha and his associates were arrested in connection with the huge unaccounted cash which were caught by the police. The findings recorded in the assessment order by the AO is based on the statement given by Shri Mohit Garg who has been handling the cash and deposited in various fictitious companies/firns accounts in Axis Bank, Kashmere Gate branch, Delhi. In view of the above, it is obvious that the appellant was aware that the enquiry related to depositing of huge unaccounted money were being done by the Government agencies including the Income Tax Department. The statements of Shri Mohit Garg and the circumstantial evidences proves that the transaction of payment of commission in the form of cash and gold must have been done. Since, the appellant was having prior information of the enquiries being done, he must have removed the ill-gotten money from his residence prior to the search conducted by the Department. It is impossible to think that the bank authority will be working beyond the working hours in violation of rules and regulations put down by the bank without any interest. 8. The Ld AR has submitted that the assessee is an individual so the provision of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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