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2018 (9) TMI 2069 - AT - Income TaxAdditions on account of cash payment to the sellers of the land - additions on the basis of documents found and seized during the course of search - Whether CIT(A) has erred in allowing the claim of the assessee merely based on the self serving statements made by the MD of the assessee and its employees, also of the sellers? - HELD THAT:- As in different seized material different narrations are there. These seized materials does not contain the entries of cash payment. Rather it contains the various payments along with dates. The CIT(A) has compared these dates of payments along with actual date of payment through cheque etc., and he found that the entries found in the seized material do not co-relate with the actual payments recorded in the books of accounts. Moreover, the total payment according to the seized material is ₹ 22.3 crores against which assessee has explained the total payment through cheque was made at 22.05 crores with regard to which CIT(A) has observed that this figure comes closer to the figure shown in the seized material at ₹ 22.3 Crores. During the course of hearing DR could not explain as to how the entries in seized material can be taken into account for making an addition on account of cash payment of ₹ 5 Crores to the seller in the light of the fact that the entries found in the seized material do not co-relate with the payments recorded in the books of accounts. As carefully examined the orders of CIT(A) and we find that CIT(A) has made detailed analysis of the entries found in the seized material and the entries recorded in the books of accounts and he has rightly concluded where the entries with regard to payment through cheque do not co-relate with the entries recorded in the books of accounts, no cognizance of the entries recorded with regard to the entries relating to cash payment in the seized material can be taken. We therefore are of the view that CIT(A) has rightly adjudicated the issue. No defect has been pointed out by the learned DR. We therefore confirm the order of the CIT(A) deleting the additions in both the years. Addition of interest payment outside the books of accounts - additions on account of cash payment to the sellers of the land and interest payment outside the books - HELD THAT:-CIT(A) has deleted the addition on account of interest paid outside the books of accounts and we find that the addition was deleted having noted that the loose sheets on the basis of which inference was drawn by the AO for interest on delayed payments itself is not reliable piece of evidence and the entries found with regard to the payment through cheque do not co-relate with the entries found in the books of account. We, therefore, are of the view that CIT(A) has rightly examined the issue under the given facts and circumstances of the case and we do not find any infirmity in the order of CIT(A) and we confirm the same. Appeals of the Revenue stands dismissed.
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