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2022 (3) TMI 526 - AT - Income TaxUnexplained cash transactions - reliance on information from seized pages - During Search operation, revenue officials came across certain loose sheets which contained the details of settlement between the groups - HELD THAT:- There was a family settlement between the Ashok Ruia Group and Bharat Ruia Group and it is fact on record that both parties agreed to exchange the shares of companies in which cross holding of shares held between the groups. Accordingly, the Ashok Ruia Group agreed to acquire the share of Phoenix Mills Limited, Galaxy Entertainment Limited, RR Private Limited and Senior Holding Private Limited. CIT(A) has elaborately discussed the various issues in his order and in summary, he came to conclusion that no definite information from seized pages, no inquiry by Investigation wing or the Assessing Officer, no confessional statement available with the department, inconsistent approach of the AO i.e., some other transactions with # has not been treated as cash transactions, no corroboration of evidence to support the theory of # equals cash and no unaccounted cash or undisclosed income which was found. On the basis of the above factual finding by the Ld.CIT(A), we can say that the addition was based on the 'rough working and estimates which is prepared by the staff of the brother of the assessee. The presumption made by the Assessing Officer is not self-sufficient and is contradictory to the other seized papers. Thus, the addition made by the Assessing Officer on account of alleged cash payment on family settlement is factually incorrect and we do not see any reason to interfere with the findings of Ld.CIT(A). Accordingly, we dismiss the ground no.1 raised by the revenue. Undisclosed income - HELD THAT:- Addition of ₹.332,415/- based on the cash found during search ie., ₹.18,32,415 and Assessing Officer accepted ₹.15 lakhs, which is out of funds from Scrap Deposit Account, the difference as undisclosed income in the hands of the assessee, observing that assessee could not produce any evidence to substantiate the difference amount. Ld.CIT(A) considered the overall situation and gave relief to the assessee on the basis of his social status and income declared by the assessee over the years. We are incline to agree with the above findings and do not see any reason to interfere with the above. Therefore, the ground no 2 raised by revenue is accordingly dismissed.
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