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2023 (4) TMI 1046 - ITAT CHENNAIAssessment u/s 153A - additions as based on incriminating material or not? - HELD THAT:- Various incriminating material in the form of loose sheets and electronic data has been unearthed by the search team and the additions are based on incriminating material. AO has extensively referred to these documents while making the impugned additions. These transactions have also been confirmed by the Managing Director of the assessee company in statement recorded u/s 132(4). There is nothing on record to support the legal grounds urged by the assessee. No interference is called for in the impugned order on legal grounds. Unaccounted Receipts from GHPL - Amount so received by the assessee from GHPL represent advance for development of project - part of the amount has been received in cheque whereas part of the payment has been received in cash. If the project had not materialized and the advances have been repaid in cash, the same would not constitute the income of the assessee. In such a case, the assessee would have refunded the cheque amounts also. AO is directed to verify the same. If the cheque amount has also been refunded and no income has accrued to the assessee from this transaction then this addition would not be sustainable in the hands of the assessee. Grounds stand allowed for statistical purposes. Unexplained Cash Receipts out of Jewel Loans - As assessee has received certain loans by pledging the jewellery of its various employees. The assessee could not explain the difference of receipts and payments and accordingly, additions for differential amount has been made in all the years. Before us also, the assessee is unable to substantiate / explain the difference. Therefore, the impugned additions stand confirmed in all the years. Unaccounted cash receipts - certain payment is stated to be made directly by STN to landowners which are not found recorded in the books of accounts. The assessee has submitted that these transactions have been recorded in the excel sheets to keep track of the commission payment. However, the assessee could not substantiate the same during assessment proceedings. Considering the principal of natural justice, we deem it fit to provide another opportunity to the assessee to substantiate its case. Unexplained Cash Receipts - The assessee has also kept record of the payments made by purchaser directly. The same has been added as the income of the assessee since the assessee could not explain the source of such receipts. Considering the facts of the case, we deem it fit to provide another opportunity to the assessee to substantiate the fact that the impugned receipts do not constitute assessee’s income. Addition of unaccounted receipts from sale of land for AY 2014-15 -assessee failed to produce the sale deeds and stated that the said transaction was normal business transaction and admitted in the return of income. The sale deeds were stated to be executed by the assessee as power holders only. However, in the absence of any documentary evidences forthcoming from the assessee, the same was added to the income of the assessee. The position remained the same during appellate proceedings which resulted into confirmation of this addition. Ld. AR has reiterated that the said transaction has already been accounted for in the books of accounts and therefore, the same could not be added separately - we restore this issue back to the file of Ld. AO for de-novo adjudication. All the appeals stand partly allowed for statistical purposes.
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