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2019 (4) TMI 1475 - AT - Income TaxAddition based on unaccounted cash receipts - entries in the loose sheets and the diary - HELD THAT:- To sum up, the on money received by the assessee is the unaccounted income of the assessee as per the notings in the diary [bank pass book] and loose sheet subject to verification of duplicate entries, arithmetical error in totalling and the amount transferred to the Head office being debit entries, wrongly added as income of the assessee. With the above directions, the common ground relating to addition on account of unaccounted cash receipts is allowed for statistical purposes. Disallowance made u/s 14A of the Act r.w.r 8D - assessee has not earned any exempt income - HELD THAT:- The assessee company has not earned any exempt income. MAXOPP INVESTMENT LTD. VERSUS COMMISSIONER OF INCOME TAX, NEW DELHI AND PRINCIPAL COMMISSIONER OF INCOME TAX-I VS. D.B. CORP LTD. [2018 (3) TMI 805 - SUPREME COURT OF INDIA]. Addition u/s 68 - business transaction relates to booking of flats and subsequent cancellation - HELD THAT:- Assessing Officer has not considered the transaction in true perspective and simply relied upon the report of the Inv Wing, New Delhi. The facts show that the transaction of ₹ 8 crores is not that of loan simpliciter. It is a business transaction and should have been considered from that angle. The companies, namely Virgin Capital Services Pvt Ltd, VIP Leasing and Finance Pvt Ltd and Humtum Marketing Pvt Ltd have tendered money for booking flats in the projects of the assessee company. It appears that the Assessing Officer has not examined the transaction of booking flats by these companies. It also appears that after booking the flats in the projects of the assessee company, bookings were cancelled and subsequently, the money was refunded to these companies. Though the first appellate authority has deleted the addition but at the same time, he has also not gone into the details of booking of flats and subsequent cancellation. Hundreds of flats/houses were booked in the projects of the assessee company and several of them were cancelled subsequently and no adverse inference has been drawn in so far as such bookings and cancellations are concerned. Therefore, there is no reason why the booking transactions with the three companies are singled out. Restore this issue to the file of the Assessing Officer. AO is directed to examine the booking details of these companies and verify the flats booked by these companies in the projects of the assessee company, examine the cancellation of the bookings and whether the booking amount has been refunded by the assessee company and if satisfied with the verification, issue may be decided afresh. Accordingly, Ground No. 2 in assessment year 2009-10 is allowed for statistical purposes. Survey action u/s 133A - diary titled Vamshi Retreats alongwith some loose papers was impounded - HELD THAT:- There is no dispute that in the statement itself, Shri Vinod Kumar Chauhan, Deputy Manager [marketing] of the assessee company has categorically stated that the impounded diary and other documents belonged to Shri Azad Singh. If at the time of enquiry Shri Azad Singh was no more an employee of the assessee company, it cannot be considered adversely against the assessee company. In our considered opinion, the Revenue should ask Shri Azad Singh about the contents of the diary and make necessary enquiry from Shri Azad Singh only. In respect of the other property in the impounded sheet itself, the name of the joint owners alongwith their profit share is mentioned. It is not the case of the Revenue that the assessee has executed any project on the said piece of land mentioned in the impounded document. Moreover, there is no dispute that the assessee company is executing huge projects and would not go for such small projects comprising of six flats only. The loose sheets may have been found from the premises of the assessee company, but since the joint owners names are mentioned in the loose sheet with respective profit share ratio, no adverse inference can be drawn against the assessee company.
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