Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2024 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 842 - HC - Income TaxUnexplained expenditure u/s. 69C - addition based on transactions mentioned in the seized diary found in search - as per Revenue transactions noted in the diary were different from the real estate business on which the assessee had received commission and the amount was spent on some activities which have not been explained - CIT(A) observed that assessee has not brought on record any evidence to establish that entries pertain to any other assessment year and as such AO cannot be faulted for considering the transactions mentioned therein for the period relevant for he period 2001-02 HELD THAT:- The peak of amount in which commission was shown as received from January-2001 to February-2001 was produced during inquiry. It was not available on the date of search at the premises and entries are made after search to co-relate the amounts mentioned in the seized diary. The fact remains that assessee’s stand of having received commission income for transaction with Dempo for assisting M/s. Devashri Real Estate Developers for eviction of tenants, is repudiated by the fact that names and amounts given by M/s. Devashri Real Estate Developers are not dealing with the names and amounts found written in the seized material. It is the claim of M/s. Devashri Real Estate Developers that amounts were directly paid by them to the tenants by cheques or pay orders. Besides there being variations in the names and amounts, the assessee had no occasion to refer such payments made by M/s. Devashri Real Estate Developers and therefore Assessing Officer was right in treating the transaction recorded in the seized papers as distinct from the payments made by M/s. Devashri Real Estate Developers. It is pertinent to note that the documents found and seized from the assessee’s premises were written by Appellant no. 2 , wife of Appellant no. 1. The entries in this document is relating to the business of assessee of liaisoning for which commission has been received from time to time. Assessee has made payment, as explained, in getting clear the properties or vacating the same from unauthorized occupants. Assessee does not deny that these entries did not relate to the activities carried out by him. He also admits that only part of the entries are correct. The authorities below have found that explanation given by the assessee is not tenable and it does not support his case. Nexus of payment by M/s. Dempo has not been established with the payment shown as made in the lose sheets found in the house of assessee. The assessee was unable to explain the source of availability of funds. Payments are not disclosed by assessee in the regular returns of income tax filed prior to the date of search. The entries in the lose sheets has not been explained. The authorities below have rightly rejected the claim of the assessee being devoid of any merit - Decided against assessee.
|