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2023 (8) TMI 1012 - AT - Income TaxValidity of the assessment order passed u/s 153C r.w.s.143(3) - addition for undisclosed cash payments - assessee submitted that except the so called ledger account seized from a third party, no other evidence was collected by the AO to corroborate the entries in the ledger account - HELD THAT:- Admittedly, the incriminating material was not seized from the assessee. On further perusal of the incriminating material i.e. the ledger copy, it is observed that it depicts certain payments in cheque and in cash. The cheque payments mentioned in the ledger copy are through Kotak Bank and AXIS Bank. It is observed, from the stage of assessment proceedings itself the assessee has flatly denied its involvement in the transactions recorded in the ledger copy seized from the third party. The assessee has specifically submitted that the bank accounts mentioned in the ledger copy do not belong to him or his wife. It is the specific case of the assessee from the very beginning that he had purchased the flat for a consideration of Rs. 40 lacs and has paid it entirely through banking channel from his bank account held with State Bank of India and ICICI Bank and bank account standing in the name of his wife held with Bank of India. Surprisingly, no statement has been recorded from the third party from whom the incriminating material was seized with regard to the entries in the ledger copy. There is nothing on record to suggest that the third party from whom the ledger copy was seized admitted of having received the cash payment from the assessee. This is so because neither the AO nor learned CIT(A) have referred to any such statement or admission by Shri Viral K. Patel with reference to the seized material. Merely because the payments made by cheque appearing in the ledger copy and actually made by the assessee tallied, it cannot lead to the conclusion that the assessee has also made the cash payments. More so, when from the very beginning the assessee has vehemently denied of having made the cash payments. Thus, in my considered opinion, in absence of any clinching evidence to show that the assessee had made the cash payments, the addition of so called cash payment could not have been made - Appeal of the assessee stands allowed.
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