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2022 (4) TMI 542 - AT - Income TaxAddition u/s 69 - unaccounted advances given to Sh. Vikas Sharma on the basis of blank receipt found in search - addition based on undated cheques and receipts found in search - HELD THAT:- Shri Vikas Sharma is the Managing Director of M/s Royal Terrace Hotels Pvt. Ltd. Sh. Manaswi Gautam, son of the assessee has made investment in the share capital of the company. As Vikas Sharma was in need of funds for construction of hotel, he approached Manaswi Gautam, son of the assessee to provide funds and for such arrangement he was required to give blank receipts and unnamed undated cheques. However, the funds could not be arranged. The cheques and the receipts were to be returned back to Shri Vikas Sharma but at that point of time they were misplaced and could not be traced. Therefore, Shri Vikas Sharma, in order to safeguard his interest obtained a cancellation receipt from the assessee on stamp paper where it was stated that cheques and receipts has been misplaced, the same has not been used, no transaction was carried out on the basis of these cheques and receipts and if the same is found it will be returned back to him. It is for this reason that in search cancellation receipt was not found from the assessee as it was given to Vikas Sharma but the cheques and receipts which were misplaced could be located by the search party in course of search. As in search of assessee no other material was found to indicate that he or any of his family members has given any cash advance to Vikas Sharma except that his son Manaswi Gautam has made investment of ₹ 1.21 cr. by cheque in M/s Royal Terrace Hotel Private Limited. Thus, when no transaction took place against the above undated cheques and receipts it cannot be presumed that the assessee has provided cash loan to Shri Vikas Sharma - Thus we direct to delete the addition made and sustained qua this issue - Decided in favour of assessee.
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