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2022 (5) TMI 134 - AT - Income TaxUnexplained cash loan - addition made as based on the documents seized during the course of search at the office premises of M/s Maad Realtors and Infra Private Limited. - HELD THAT:- Letter filed before the Assessing Officer submitted that the entry of Rs. 25,00,000 in cash was by mistake of the accountant was passed in the Ledger account of the assessee and the same in fact was investment by Rashmi Ameya Developers Housing & Estate Realtors Ltd, the Assessing Officer neither called for any information / document from Rashmi Ameya Developers Housing & Estate Realtors Ltd. nor issued any notice under section 133(6) of the Act to ascertain the authenticity of such a statement. Assessing Officer completely dis-regarded the aforesaid letter dated 08.09.2016 and merely on the basis of seized document page 15 made addition in the hands of the assessee as unexplained cash loan to M/s Maad Realtors and Infra Private Limited. Further, the Assessing Officer also neither recorded any statement of the director/partner of M/s Maad Realtors and Infra Private Limited nor granted opportunity of cross examination to the assessee. Thus, the impugned addition is based only on entry found in the seized documents, without the same being corroborated with any other evidence found during the course of search or post search investigations and assessments. Further, we agree with the submission of learned A.R. that section 292C of the Act is not applicable in the present case, as it is not the claim of Revenue that seized documents were found in the possession of the assessee. Decided in favour of assessee. Addition on account of unexplained expenditure - HELD THAT:- From the contents of loose documents, as mentioned in the impugned order passed by the learned CIT(A), it is evident that the same is nothing but the calculation of cumulative interest on month-to-month basis by charging the interest in the next month on the principal plus interest of the preceding month. Further, the details do not show any payment or receipt of interest on monthly basis, otherwise, the principal amount would have been actually reduced rather than being increased. In the present case, no evidence has been brought on record by the Assessing Officer to prove that assessee was involved in 2 projects named in the loose documents. In view of the above, we find no infirmity in the order passed by the learned CIT(A) deleting the addition made by the Assessing Officer on account of unexplained expenditure. Accordingly, grounds raised in Revenue’s appeal are dismissed.
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