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2023 (4) TMI 397 - HC - Income TaxAdditions made on account of cash payments - Addition based on lose pape - assessee failed to discharge burden of proof - Whether CIT(A) has rightly deleted the said additional by a detailed analysis of the entries found in the seized material and the entries recorded in the books of accounts? - Revenue's specific case is, payment has been made outside the books - HELD THAT:- As before arriving at a conclusion, CIT(A) had called for a remand report from the AO and he has noted about the same in his order that in the remand report, the AO had confirmed that he had recorded the sworn statements of Shri.Arun Nayak and Shri.Pradeep Kumar Shenoy under Section 132(4) and 131 of the IT Act and they have not stated anything adverse against the Assessee. Therefore, their statements were not used by AO in scrutiny assessments. According to AO, nothing adverse was stated by him against the Assessee. Above all, it is relevant to notice that the payments through cheques have commenced from 2.5.2006 and ended on 31.5.2013. The e-mail is of the year 2010. In AO's order, the explanation given by Assessee has been recorded and it shows that according to the Assessee, initial sum of ₹5 crores was sought to be paid in cash, but subsequently the same has been paid in cheque. Both CIT(A) and ITAT which are the last fact finding authorities, on examination of the material on record, the remand report submitted by AO and by following the authority in the case of CIT v. Anil Bhalla [2010 (2) TMI 7 - DELHI HIGH COURT] have held that the addition made by AO based on lose paper, was not sufficient to make additions. Decided in favour of the Assessee.
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