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2015 (5) TMI 676 - AT - Income TaxAddition u/s. 68 - Held that:- There is no dispute that the assessee has submitted Memorandum/Articles of Association of Companies, Board Resolution of the companies, Loan confirmations, Balance sheet, PAN details & Copies of I.T. returns.A perusal of these documents go to establish that the assessee has prima facie discharged the onus cast upon him by virtue of provisions of Sec. 68 of the Act.The AO drew support from the observations made in other group cases but that cannot be the sole basis for making the additions in the case in hand. We find that the transactions have been made by cheque. There is no direct evidence brought on record in the case of the assessee to show that the transaction is not genuine as no verification has been made in the case of the assessee from the related banks. We also find that all the lender companies are taxpayers and their PAN details are on record alongwith the copies of their income tax return. There is no evidence to show that the AO has made enquiries from the lender companies. Merely because the lender companies were found to be name lenders in other group companies would not empower the AO to make additions u/s. 68 of the Act in the hands of the present assessee. Thus keeping in mind the ratio laid down in the case of CIT Vs Orissa Corporation Pvt. Ltd. [1986 (3) TMI 3 - SUPREME Court], we have no hesitation to hold that the assessee has successfully discharged the onus cast upon him by virtue of Sec. 68 of the Act. No addition is therefore called for. We set aside the findings of the Ld. CIT(A) and direct the AO to delete the addition made u/s. 68 of the Act. - Decided in favour of assesse. Addition u/s. 69 - Held that:- AO has simply disbelieved the explanation of the assessee but at the same time has not brought any demonstrative material evidence on record to prove that there is an unexplained investment made by the assessee. The AO did not even care to verify from the said builder. The additions have been made purely on the strength of a piece of paper without any corroborative/demonstrative evidence therefore in our considered view, such additions cannot be sustained - Decided in favour of assesse. Addition holding that the transactions pertain to A.Y. 2007-08 - Held that:- We failed to persuade ourselves to give any logical conclusion/finding in respect of these documents on the basis of which the AO has made the addition. There is not even an iota of evidence to show that the AO has made an enquiry from the said Shri Vikramjee Agarwal. Merely because some figures were found to be written in some document, The AO cannot extrapolate 50 and interpret 50 as 50,00,000, 575 as 575 lakhs without any corroborative/demonstrative evidence. Without there being any corroborative evidence additions made merely on the basis of some illogical and irrelevant entry/jotting on a piece of paper cannot justify the actions of the AO and of the Ld. CIT(A). We, therefore, do not find any merit in the additions made by the AO on the basis of these documents. We direct the AO to delete the entire additions made on the basis of these two documents - Decided in favour of assesse. Addition made u/s. 68 - Held that:- The AO has simply mentioned that ₹ 5 crores in the name of Shri P. Anandam is not found reflected in the books. However, in respect of other entries relating to ₹ 16.75 crores, the AO has not pointed out in whose books these amounts have been found to be recorded. On the one hand, the AO has considered ₹ 5 crores as income of the assessee and on the other hand ₹ 4.85 crores found to be spent on the bungalow, as observed by the AO was not treated as unexplained investment. The AO cannot take two different views on the same set of documents. It is clear that the AO has made additions purely on the basis of surmises and conjunctures. We, therefore cannot sustain such additions made purely on assumption without there being any corroborative evidence brought on record. We set aside the finding of the Ld. CIT(A) and direct the AO to delete the addition of ₹ 5 crores - Decided in favour of assesse.
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