Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 159 - AT - Income TaxUnaccounted Cash Credit - survey u/s. 133A - computer back up files found on the system at the assessee's premises - could any addition be made in the hands of the assessee, the recipient or the beneficiary of these funds? - Held that:- The transactions of availing monies from 'P' having not been recorded in the assessee's books of account, section 68 could not be said to be applicable. However, that would be to no consequence, as the admission of the transaction/s itself implies of the corresponding amount/s in the assessee's hands in the form of cash on the relevant date/s and sections 69, 69A, etc., will apply. CIT(A) has relied on the decisions in the case of Sunil K. Malhotra v. CIT [1995 (7) TMI 60 - ALLAHABAD HIGH COURT] and Laxmi Narain Gupta v. CIT [1979 (10) TMI 41 - PATNA HIGH COURT]. The document to be considered as true, admittedly reflects the transaction/s of money being provided by 'P' for their use by, among others, the assessee. That is, it shows an effective or constructive receipt of money by or on assessee's behalf. Where it was used can only be explained by the assessee, and which it has chosen not to. The receipt of money by the assessee is manifest per the document, which is, rather, not denied by the assessee. The acquisition of money by the assessee as at the relevant date/s, thus, cannot be and, in any case, is not in question. The same (money, in the form of cash), which is covered by section 69A, being not recorded in the assessee's books of account, the said provision would apply to the transaction. Consider this a bank pass book of the assessee, which definitely does not form part of the assessee-bank account holder's books of account, is found during search/survey, reflecting deposit/s and/or credit/s therein. The amount/s may have been withdrawn subsequently, so that it cannot be said that a deposit/s is 'found' as on the date of search, yet it is so found on the relevant date/s (of deposit/s), so that the assessee is obliged to explain the same as to its nature and source, where not reflected in its regular books of account and the date/s fall in the year/s of assessment. Thus, find no legal hindrance or barrier to the invocation of the said sections, or s. 69A in the instant case. It is only when both the nature and source of the money has been satisfactorily explained, that the assessee's obligation under the deeming provision stands discharged and which, thus, cannot be said to be in the facts and circumstances of the present case. The deeming of section 69A would, thus, be clearly applicable, and stand validly applied by the Revenue in the facts and circumstances of the case. However, the same shall only extend to the 'money' with the assessee, and cannot, by any account, extend to the money provided by 'P' for persons other than the assessee. Whether the assessee has any connection with them; it clearly with-holding facts, is irrelevant, as in any case they are separate persons, and their income, if so, cannot be assessed in the assessee's hands merely because a document is recovered from its premises. Accordingly, the assessee's income stands validly assessed to the extent of Rs. 5,61,000/-, and the balance Rs. 12.83 lacs stands to be deleted - partly in favour of assessee. Addition u/s. 69 C effected on the basis of print-outs of computer back up file - CIT(A) deleted the addition - assessee's contested that its' name being reflected neither in the payments nor toward receipt of money - Held that:- Presumption u/s. 292C can only result in the document being read as what it would convey to a normal, un-interested person of ordinary prudence. Of course, in a given case, the reading may yield grotesque situations, as where the person/s stated in the document does not exist, or (say) the person/s stated to be providing the material resources is admittedly a man of no means, so that the document could not be considered as a valid piece of information. However, in such a case, the onus to show so would be on the person so alleging. The AO has done no such exercise. The Revenue has also not brought on record any interest of the assessee in the relevant properties. The document, as we see it, has no bearing on the assessee. The document may be true, and the assessee may well be in know of its contents, as it would only have been prepared by or under its supervision and knowledge, and only for some purpose. However, if the assessee doe not choose to divulge the same, it cannot be in consequence applied to it. Under the circumstances, CIT(A) had rightly deleted the impugned addition - against revenue.
|