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2020 (6) TMI 410 - AT - Income TaxAssessment u/s 153 OR 147 - unexplained cash credits u/s 68 - HELD THAT:- On the strength of the information received from the ADIT, INV, the Assessing Officer assumed jurisdiction u/s 148 of the Act and accordingly, statutory notices were issued and served upon the assessee. Since the documents were found at the premises of the searched person, they did not belong to the assessee and the transactions recorded in the seized documents were in the books of the searched person and, therefore, information received from the Investigation Wing was a tangible material evidence which prompted the Assessing Officer to initiate proceedings u/s 148 of the Act. P rovisions of section 153C of the Act do not apply on the facts of the case in hand, and therefore, jurisdictional issue challenged by the assessee does not hold any water. Addition u/s 68 - Direct and clinching evidences cannot be brushed aside lightly. The entire additions have been made on surmises and assumptions revolving around the statement of one Shri Devi Das Tikamdas Chattani ignoring the fact that the director of M/s Index Securities and Research Pvt Ltd alongwith major share holder Shri Sant Lal Aggarwal appeared before the Assessing Officer. Financials were available with the Assessing Officer. AO/CIT(A) should not have discarded the evidences. In our considered opinion, the assessee has successfully discharged the onus cast upon it u/s 68. Addition u/s 69C - Addition is directly related to the loan amount as the same is interest paid by the assessee to the company and the same is also directed to be deleted. Before closing, it can be seen from the confirmation exhibited elsewhere that the loan was taken on 11.09.2009 and within three months, the loan was repaid. All the transactions have been done through banking channel. Cash loans given to the assessee - Foundation of the impugned addition is the statement of Shri Devi Das Tikamdas Chattani. Except for that, there is no direct evidence brought on record to show that any cash transactions took place between the assessee and the said person. Assessing Officer never confronted Shri Devi Das Tikamdas Chattani to Shri Sant Lal Aggarwal. If the statement of Shri Devi Das Tikamdas Chattani is to be believed, then on the same facts, statement of Shri Sant Lal Aggarwal cannot be ignored or brushed aside lightly. Merely because the statement of Shri Sant Lal goes in favour of the assessee, cannot be a reason to disbelieve the same. As mentioned elsewhere, there is no direct evidence brought on record which could suggest that some cash transactions took place between the assessee and the searched person. The observations made by the Assessing Officer at page 25 of the assessment order clearly show that the entire addition has been made on surmises and conjectures. Considering the facts of the case in hand, in the light of statement of Shri Sant Lal Aggarwal, we do not find any merit in the impugned addition and the same is directed to be deleted.- Assessee appeal allowed partly
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