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2017 (5) TMI 471 - AT - Income TaxRightful owner of the money found deposited in the bank accounts - survey under section 133A - Held that:- We could see variance in the amount brought to tax in the hands of Shri Naresh Agarwal and the assessee company, the reason is attributed, to some extent, to the fact that the Assessing officer has distributed the total amount of ₹ 3,41,99,953 among three companies including the assessee company. The fact remains that the deposits found deposited in the same bank accounts have been brought to tax in hands of Shri Naresh Agarwal and the assessee company. On perusal of the assessment orders, we find that there existed an ambiguity to determine the person to whom the deposits and the resultant income rightfully belongs. We, therefore, donot find anything wrong in the action of the Revenue authorities in bringing to tax the same amount in the hands of Shri Naresh Agarwal and the assessee company as there exist an ambiguity or doubt as to the rightfully owner of the money found deposited in the bank accounts. Rightful owner of the money so found deposited in the bank accounts and who should be finally assessed to tax in respect of said bank deposits - Held that:- The records of transaction of the bank accounts basis which the AO has determined the assessee’s company tax liability is a critical piece of evidence which can support and corroborate the statements so recorded. It is equally important to know the contents of these documents and how the AO has established the necessary nexus with the assessee company. Unfortunately, the records and paperbook submitted before us is silent on this and in absence of the same, we are unable to take a view in the matter solely basis the statements so recorded.Further, the ld AR has raised various contentions (as noted above) in terms of inconsistency in the statements of Shri Naresh Agarwal, the absence of nexus with the assessee company, the locus standi of Shri Sharad Heda and how the same cannot be relied upon and held against the assessee. In our view, what is relevant is that the statements should be read as a whole and any inconsistencies should be examined. Further independent investigation be carried out by the AO to determine the necessary nexus with the assessee company with the amounts so deposited in the bank accounts and the locus standi of shri Sharad Heda, the relationship and linkage with the promoters/directors and in the affairs of the assessee company before a final view is taken in the matter. In our view, there is not enough material on record for us to take a view in the matter and the matter deserves to be set-aside to the file of the ld CIT(A) to examine the same afresh. Appeal filed by the assessee is allowed for statistical purposes.
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