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TMI Blog2024 (12) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... n the amount of addition made in each of the years. Since common issue is involved, we take up all these appeals together for adjudication by passing this consolidated order. The lead case for appreciating facts is taken as ITA No.5510/Mum/2024 for AY 2014-15. The common issue involved is in respect of addition made u/s. 69C for expenditure incurred in cash based on certain entries appearing in loose paper, rough diaries, sheets, etc., referred to as seized material found during the course of search at the premises of one of the group company of the assessee. Assessee in the present case is "other person" as referred to in section 153C and the impugned assessments have been completed by passing orders u/s. 153C r.w.s. 143(3) of the Act. 3. Brief facts of the case are that, assessee filed its original return of income on 24.09.2014 reporting total income at Rs. 30,08,290/-. Subsequently, a search and seizure action was undertaken on 20.08.2019 u/s. 132 of the Act in the case of Oberoi Realty Ltd. and its related/associated entities commonly referred to as Oberoi Realty Group. Owing to this search, certain incriminating material was found and seized, which according to the ld. Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while those treated as 'duplicates were 'not-considered in final summation process. Also, these data entries could also be classified into the following heads' for each financial year - a. Project Expenses/Payments b. Personal Expenses c. Vikas Oberoi Expenses d. Gayatri Oberoi Expenses e. Bindu Oberoi Expenses f. Santosh Oberoi Expenses 10.8 Quantification of Cash Transaction Entries The quantification of cash transactions has been done, on the basis of cash transaction entries which were found recorded on the identified 27 CTEBs as well as statements of various persons recorded during search/survey proceedings, broadly under the head - cash receipts and cash payments. 10.9 Cash Payments The cash payments have been bifurcated into two heads-one those relating to business entities of Oberoi Realty Group and the other relating to the personal expenses of the members of Shri Vikas Oberoi, promoter-director of ORL 10.9.1 Cash Payments of Business-entities of Oberoi Realty Group Such cash payments have been tabulated as under - 3.1. From the above extraction, it is noted that Department had adopted a differential approach for cash payments and cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal before the ld. CIT(A). 4. Before CIT(A), it was submitted that, subsequent to the impugned assessment order, Interim Board for Settlement (IBS, erstwhile Settlement Commission) had passed a settlement order, dated 28.04.2023, wherein notings made against the assessee were considered. To demonstrate its case, references were made to the application along with annexures thereto, made before the Settlement Commission by Mr. Vikas Oberoi, details of which are elaborated below: i) Mr. Vikas Oberoi is the Managing Director/Director in the following Oberoi Realty Group of companies which also includes the assessee company wherein he is a Director and holds 99.01% shares. Sr. No. Name of Entity Designation % of shareholding 1 Oberoi Realty Limited Managing Director 58.54 2 Expressions Realty Private Limited Director - Kingston Property Services Limited Direclol - 4 Oberoi Constructions Limited Managing Director . 5 Integrus Realty Private Limited Director - 6 Incline Realty Private Limited Director - 7 l-Ven Realty Limited Director 50.00 8 Shrivatsa Realty Private Limited Director - 9 Siddhivinayak Realties Private L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal before the Tribunal. In this respect, summary of cash flow for each of the Assessment was also furnished, one for AY 2014-15 is reproduced as under: A.Y. 2014-2015 (From 01-04-2013 To 31-03-2014) Receipts Payments Particulars Amount (Rs.) Amount (Rs.) Particulars Amount {Rs.} Amount (Rs.) Opening Balance 2,60,20,500 On Money Expenditure - Oberoi Realty Limited 30,00,000 Project Expenditure 13,15,94,000 Vikas Oberoi 1,72,56,300 14,88,50,300 Scrap Oberoi Realty Limited 2,50,000 Loan Receipts 26,71,50,000 Loan Repayment 11,80,05,600 Closing Balance 2,95,64,600 Total 29,64,20,500 Total 29,64,20,500 4.1. In the report, under Rule 9 of the Income Tax Settlement Commission (Procedure) Rules of Mr. Vikas Oberoi, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f loose papers, diaries, etc., found and seized in the course of search of Oberoi Realty Group. Also, it is a fact on record that the classification of notings from the seized material to arrive at the alleged cash payments and receipts for making the addition was done by the Department on its own analysis, which was put up before the assessee for explanation as to its nature and source. Commonality of the source was explained by the assessee through the submissions made before the Settlement Commission (IBS) by accepting the same as his own personal expenses by Mr. Vikas Oberoi, which was eventually accepted by ld. IBS in its order. The nature and source of these un-explained cash expenditure were explained through cash flow statement which was furnished and formed part of the application made before IBS. 5.1.. Ld. Counsel placed reliance on the order of Coordinate Bench in the case of Wadhwa Construction and Infrastructure Ltd. in ITA No. 584 & 585/Mum/2022, dated 21.09.2022, wherein on a similar set of facts and circumstances, Revenue's appeal for addition made u/s. 69C was dismissed. 6. Per contra, ld. CIT DR submitted that assessee has not explained the nature and source of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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