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2018 (6) TMI 277 - AT - Income TaxUnaccounted investment - addition based on entries recorded in the diaries seized - addition proposed by Spl. Auditor - Held that:- Even though assessee explained that the transactions pertain to the firm, the same seems to have been not examined properly by the AO or by the CIT(A). On the addition proposed by Spl. Auditor the transactions were reportedly by cheque and as clearing (clg) is mentioned, it is easy to verify the said transactions with reference to the corresponding bank entries, either in assessee’s bank pass book or in the firm’s bank accounts. This exercise has not been done and amount of ₹ 3,03,455/- has been added in the assessee’s hands ignoring the assessee’s explanation. When assessee explained that amount of ₹ 9 Lakhs was meant for purchase of cement that can be verified from the books of the firm, which was in the construction activity. The diary being maintained in Telugu. The same could have been analysed and examined to see whether the contentions of assessee are correct or not. Since this exercise was not been undertaken by the AO or by the Ld.CIT(A), who could not read Telugu, we are of the opinion that the issue can be re-examined by the AO after giving due opportunity to assessee to explain the transactions vis-à-vis the books maintained by assessee or in the firm’s hands - Appeal of assessee is allowed for statistical purposes.
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