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TMI Blog2024 (11) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... of RNB Temple Trust and the Ram Bajaj foundation was kept in the lockers operated by the family members of Bajaj Group and it is a fact on record that almost all the cash kept in the locker were belonged to the RNB Temple Trust and Ram Bajaj Foundation and 95% of the submissions made by the assessee are accepted by the ld. CIT (A). All the cash kept in the lockers which were specifically earmarked for the purpose of construction of temple and running of Ram Bajaj Foundation. Cash declared in the Balance Sheet of both the entities are matching with the cash found in the locker, one has to go by the circumstantial presumption that the cash found in the lockers are meant for the temple construction and for the purpose of running of educational institution. Therefore, there is no evidence brought on record to show that this cash belongs to the members of Bajaj Family except applying presumption. Accordingly, we are inclined to delete the addition made by the ld. CIT (A). Decided in favour of assessee. - Shri Saktijit Dey, Hon ble Vice President And Shri S.Rifaur Rahman, Accountant Member For the Assessee : Shri Ved Jain, Advocate, Shri Amit Garg, CA For the Revenue : Ms. Sapna Bhatia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l u/s 153D of the Act is illegal, bad in law and also without any application of mind. 7. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of the assessee that the assessment order passed by the AO is invalid and bad in law as the same was passed in violation of the circular No. 19/2019 issued by CBDT which mandates that no order shall be passed without there being valid Document Identification Number (DIN) 8. (i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs. 18,00,000/- made by the AO on account of cash found du ring the course of search treating the same as unaccounted invoking the provision of section 69A of the Act. (ii) That the addition has been confirmed rejecting the detailed submission and explanation brought on records by the assessee. 9. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the addition has been made by misinterpreting the statements recorded on oath during the course of search. 10. On the facts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ker no.299 of Rs. 22,00,000/- in the name of the assessee and added the same as unaccounted cash in the hands of the assessee for AY 2008-09. The Assessing Officer observed that despite allowing several opportunities to the assessee, assessee did not put forth any explanation/clarification in this regard, therefore, he satisfied that the assessee has concealed his income and accordingly, proceeded to make the addition of Rs. 63,00,000/-. 5. Aggrieved with the above order, assessee preferred an appeal before the ld. CIT (A)-30, New Delhi and filed detailed submissions before him as under :- 7. During the course of appellate proceedings the appellant detailed written submission on each ground which has been carefully perused. The relevant part of written submissions filed by the appellant are reproduced as under: 9.1. Your honour, a search and seizure action was carried out in the case of RNB Group on 20.04.2017. In consequence to the said search, and seiy.ure action the hank lockers in the name of assessee teas searched by the departmental officials in the month of May 2017. During the course of said search action, cash was found and seized from the following bank lockers and was ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of search action at locker no. 299, SBI, Rajouri Garden, Delhi, the statement of Sh. Vikram Bajaj was recorded on oath, wherein vide question no. 5 and, 6 (refer PB Pg, no. 191-192} the departmental officials inquired him about the content of the looker. Your honour, in response to the said question, it was slated by Sh. Vikram Bajaj that the locker contains cash, part of which belongs to RNB Temple Trust and. the balance belongs to other group entity which were recorded in the books of accounts, 9.5. However, your honour, ignoring the contention raised during the course of search action, Id, AO made the addition of cash found in the bank lockers by alleging the same to be undisclosed cash of the assessee. In this regard, it is relevant to submit before your honour that the cash found was duly recorded in the books of accounts of the person to whom it belongs i.e. Ram. Bajaj Foundation and, was not undisclosed cash from some undisclosed sources as has been alleged by the Id. AO. In order to substantiate the same, we would like to draw your honour's kind reference towards the copy of audited financial statements of Ram Bajaj Foundation pertaining to AY 2017- 18, placed at PB P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to the details and source of cash contain in the bank lockers of RNB group, it was categorically submitted by the assessee as well as Sh. Vikram Bajaj that the cash contained in the lockers belongs to RNB Temple Trust which has been duly recorded in the books of the RNB Temple Trust. Your Honour, in order to substantiate the said contention, assessee submitted the copy of audited financial statements of RNB Temple Trust (refer Pit Pg. no. 138-142) to the departmental officers and. contended, that when the income tax department had a copy of audited financial statement of RNB Temple Trust much before the dale of search then how if can be alleged that the Cash found in the bank lockers of the RNB group was undisclosed. 9.9. However, your honour ignoring the explanation and the documentary evidences submitted by the assessee and Sh. Vikrum Bajaj during the course of search action at the bank lockers of the RNB group. Id, AO made the addition of the cash found by considering the same as unexplained cash. Your Honour, while making the said addition, the Ld. AO has made various futile allegations which are dealt in detail in the immediately succeeding paragraphs. a. Sh. Vikram B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that when both Sh. Vikram. Bajaj and Sh. Vinod Bajaj during their statement recorded separately and at different point of time confirmed that the cash belongs to RNB Temple Trust and submitted the copy of financial statement pertaining to AY 2016-17 duly audited on 12.04.2017 i.e. before the date of search, then on what basis it has been alleged by Ld. AO that Sh. Vikram Bajaj and Vinod Bajaj failed to substantiated their claim by giving any plausible evidence. b. They were unable to provide any satisfactory explanation as to how the alleged gupt daan was collected by them. 9.14. Your Honour, vide para 8.2 of the assessment order Ld. AO has alleged that Sh. Vikram Bajaj and Sh. Vinod Bajaj has failed to explain as to how gupt daan was collected by them. Further, it has been observed by the Ld. AO that when it has been stated on oath that there was no hundi/donation box kept anywhere, than how the anonymous donation could have been collected a claimed by them. 9.15. In this regard, it is relevant to drawn your honours kind attention towards answer to question no. 20, 21/25,26 27 of statement of Sh. Vikram Bajaj (refer PB Pg.no. 133-136) and answer to question no, 17 to 26 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, however, till than for the purpose of construction of temple the donation was collected in any laptop bag or similar kind of bag. In view of the above submission your honour will appreciate the fad that the ld.AO has given his observation merely on his presumption and in the absence of any evidence on record, accordingly, no adverse inference can he drawn on the assessee on the basis of the same, c. It was learnt that no registration under section 12A has been granted to the trust till date 9.17. Your Honour, vide para, 8.2 impugned assessment order Id, AO has observed that no registration under section 12A of the IT Act, 1961 has been granted to the trust till date (i.e. date of order 20.12,2019), Further, it has also been observed by the Ld. AO that trust does not even have, the hank account Your Honour on the hand of the said observations the Ld. AO has alleged that the claim of Sh. Vikram Bajaj and Vinod Bajaj that the cash pertains to RNB Temple Trust is not sustainable. 9.18. In this regard, it is relevant submit before your honour that the observation of the Ld. AO that RNB Temple Trust has not received any registration under section ISA is factually incorrect, since you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of making addition by alleging the cash found in the locker to be unexplained. d. That during the course of main search, none of the individuals of the Bajaj group stated that cash of this entity was kept in the hank lockers, 9.21. Your Honour, vide para 8.2 of impugned, assessment order Id. AO has observed that during the course of main search none of the individuals of the Bajaj group stated, that cash of this entity was kept, in the bank lockers. However, your honour while making the said observation the Ld. AO has failed, to mention, what inference he was trying to make from such observation. 9.22. In this regard, it is submitted before your honour that when, no specific question was raised by the departmental official from any of the individuals of the bajaj group with respect to the bank lockers/things kept in the bank locker, then how will any person from the bajaj group unit comment an the same. Further, your honour, it cannot be denied that (hiring search action, the person on whom search is carried out are under tremendous pressure and fear and accordingly, in such circumstances it cannot be expected from the search person to answer/explain what has not been asked from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Bajaj group only and accordingly Ld. AO was not justified in making false allegation against the assessee. Furthermore, your honour, vide question no. 24 of the Statement of sh. Vikram Baja (refer PB P. No. 134), it has been alleged by the Department that in the absence of any books of accounts found during the course of search, the submission of audited financial statement during recording of the statement seems to be nothing more than afterthought. In this regard, in response to the said query it was submitted by Sh. Vikram Bajaj when cm. application for registration of trust under section I2A was submitted to the income tax department through online mode, before the date of search then how can it be alleged that the contention raised by the assessee is an afterthought Moreover it was also submit that while applying for the said registration the copy of audited financial statement of the trust was also submitted before the department that too before the date of search, then on what basis doubts can be raised on the genuineness of the audited, financial statement submitted by him at the time of his statement. 9.26. In view of the above submission it is event before your honour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vaji Enclave, New Delhi. The material has been used as an evidence against assessee, despite the fact that the search warrant of the premises from which it has been alleged to be seized was not in the name of assessee but in the name of M/s RNB Infrastructure Pvt. Ltd. and RNB Leasing and financial Service (which otherwise was non-existing on the date of search). Accordingly, any addition made on the basis of documents/loose papers seized from the premises not searched in the name of assessee cannot be a subject matter of assessment under section 153A of the Act and is liable to be deleted. Moreover, the search carried out at the aforementioned premises i.e. RNB House no. 3, Shivaji Enclave, New Delhi, was an invalid search since the same was carried out on the basis of an illegal search warrant. These issues have been discussed in detail in submissions to ground no. 2-5 supra. 6. Further, assessee filed additional evidences before the ld. CIT (A) and ld. CIT (A) remanded the matter back to the Assessing Officer and in the remand report, Assessing Officer gave various details/reasons for rejecting the additional evidences. The assessee also filed rejoinder to the remand report. Bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jaj Foundation. The submission of the appellant, remand report of the AO and rejoinder filed by the applicant have been carefully perused. My observations are as under : 18.1 In the statement recorded on 23.05.2019 at the time of search of locker, Shri Vinod Bajaj has mentioned that the cash in the locker No.299 was partly of RNB Temple Trust and remaining of other business entity Ram Narayan Bajaj Foundation (Foundation) is a trust which runs University in the name of RNB Global University and is not a business entity. Had the cash of foundation been kept in the locker, the appellant would have remembered the name and stated so in his statement as the locker was operated by him just a day before the search. As the appellant did not name the entity whose cash was kept in locker no 299 his statement was found to be vague, evasive and misleading. 18.2 The appellant did not submit the cash book of Ram Narayan Bajaj Foundation during the appellate or remand proceedings to substantiate that the cash pertaining to it was kept in the bank locker of Shri Vinod Bajaj. Further, the appellant did not submit any document from Ram Narayan Bajaj Foundation to substantiate that Shri Vinod Bajaj w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to our notice page 253 of the paper book which is additional evidences submitted before the ld. CIT (A) which is the balance sheet of Ram Bajaj Foundation wherein they have declared cash in hand of Rs. 14,15,860/- and further he brought to our notice page 283 of the paper book which is the cash book which tallies with the figure declared in the Balance Sheet. He also brought to our notice page 328 of the paper book which is the assessment order passed u/s 143 (3) of the Act dated 19.04.2021 where Revenue has accepted the books of account of Ram Bajaj Foundation. He prayed that all the cash found in the locker belongs to RNB Temple Trust AND Ram Bajaj Foundation. 9. On the other hand, ld. DR for the Revenue brought to our notice detailed findings of the Assessing Officer and specifically brought to our notice para 8.2 of the assessment order and submitted that there was no books of account found during the search. he relied on the remand report submitted by the Assessing Officer against additional evidences submitted by the assessee. He submitted that the informations submitted by the assessee during appellate proceedings as additional evidences are nothing but afterthought. He stro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oundation. Ld. CIT (A) has given relief to the assessee to the extent of Rs. 4,00,000/- and balance addition of Rs. 18,00,000/- was sustained. We observed that ld. CIT (A) rejected the submissions of the assessee for the reason that the assessee did not submit any document from Ram Bajaj Foundation to substantiate that assessee was authorised to keep cash belonging to the Ram Bajaj Foundation. Further, the reason for rejecting the plea was that the locker was operated on 19.04.2017 and the Balance Sheet of Ram Bajaj Foundation was audited subsequent to the search. It was observed that the cash declared in the audited Balance Sheet was Rs. 14,15,860/- and the same amount was claimed to be kept in the locker. After considering statements of both sides, we observed that no doubt, the Balance Sheet finalized by the foundation was accepted in its assessment. It is also fact on record that the Balance Sheet was finalized subsequent to the search and further, the locker was also operated one day before the search operation. Keeping the overall facts on record, we observed that all the cash of RNB Temple Trust and the Ram Bajaj foundation was kept in the lockers operated by the family memb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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