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2010 (6) TMI 892 - AT - Income TaxAddition on account of unexplained opening capital - unexplained portion of newly introduced capital - addition in the hands of assessee on protective basis - Papers impounded from the premises of Shri Danawala indicated an enhancement in the opening capital of A.Y.2003-04 - admission made by the Mohanbhai Dhanjibhai Patel Group, this is required to be taxed in the hands of Mohanbhai Dhanjibhai Patel substantively alongwith the enhanced capital - HELD THAT:- Assessing Officer, in the assessment order, himself observed that “considering the admission made by the Mohanbhai Dhanjibhai Patel Group, this is required to be taxed in the hands of Mohanbhai Dhanjibhai Patel substantively alongwith the enhanced capital of ₹ 15,00,000/- altogether which works out to ₹ 15,00,000/- an on protective basis in the case of the assessee”. This clearly indicates that the Assessing Officer himself was not sure whether this income of ₹ 15,00,000/- is earned and actually belonged to the assessee. The assessee has filed an affidavit before the Assessing Officer. From the perusal of the same and after considering the totality of the facts and reasoning given by the Learned Commissioner of Income Tax(Appeals), we are convinced that the Assessing Officer made the addition of ₹ 15,00,000/- on the basis of fictitious entries in loose sheets of paper found from the premises of the C.A. Shri Pankaj Danawala, who had admitted to have created such amounts himself. Therefore, the Learned Commissioner of Income Tax(Appeals) is legally and factually correct in deleting the addition of ₹ 15,00,000/-, which was made by the Assessing Officer in the hands of assessee on protective basis. Resultantly, the ground of appeal raised by the Revenue is rejected.
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