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2024 (2) TMI 866 - AT - Income TaxUnexplained investment in agricultural lands - loose paper seized relied upon - HELD THAT:- From perusal of this loose paper the cash transactions are between 31.08.2006 to 17.12.2006 which pertaining to the Assessment Year 2007-08. Whereas the purchase of lands by the assessees in the name of the Firm were between 17.04.2008 to 08.10.2008 which is clearly falls under the Assessment Year 2009-10. However the Ld AO determined the cash and cheque ratio as 4.5 : 1 based on this seized loose sheets which has no relevance to the purchase of agricultural lands by the assessee in the name of its Partnership Firm VIDC. On perusal of the various Sale Deeds executed in the names of the assessees herein, the original land owners only executed the Sale Deed in favour of the assessee on behalf of the Firm VIDC and the Partnership Firm VIDC had made cheque payments to the sellers of the land, which is reflecting in the various Sale deeds executed at the office of the Sub Registrar. Furthermore, the Partnership Firm VIDC sold few part of the lands during the Asst. Year 2012-13 for a consideration which is clearly shown in the Profit and Loss account of the firm as business profit and offered for taxation while filing the Return of Income in Form ITR-5. Further the sale consideration received by the Firm VIDC is reflected in its bank account. This apart the very same seized material is used by the department in the case of M/s. Sopan Industrial Infrastructure Park relating to the Assessment Year 2007-08 wherein this Hon’ble Tribunal dismissed the Revenue appeal. On further appeal by the Revenue before the Hon’ble Gujarat High Court [2019 (4) TMI 569 - GUJARAT HIGH COURT]the Hon’ble High Court dismissed the Revenue appeal observing that there is nothing to connect the assessee with the contents of the seized material. Loose sheets was not seized from the assessee but on the basis of some noting made by a third party. No conclusion could be drawn that the same pertains to the assessee namely Sopan Industrial Infrastructure Park and no conclusion could be drawn that the same pertains to the assessee, more so, when the seized documents nowhere referred to the assessee. Thus no hesitation in confirming the order passed by the Ld. CIT(A) who was deleted the addition made by the Assessing Officer. Decided in favour of assessee.
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