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2021 (1) TMI 905 - AT - Income TaxAddition on account of alleged cash payment out of undisclosed income - Addition based on entries in the diary found in search - HELD THAT:- No question was asked from the assessee regarding these transactions as part of his statement recorded u/s 132(4) - During the assessment proceedings, the assessee was asked to explain the said entries and the assessee explained that the said entries were not in his handwriting and were made by his son, Shri Jitendra Yadav and an affidavit of Shri Jitendra Yadav was also filed where he has owned up the entries and the transactions so reflected therein as made by him relating to family transaction and expenses. Revenue has not brought any evidence or finding disputing the contents of the said affidavit and the same thus remain unrebutted before us - where Shri Jitendra Yadav has owned up the entries and the transactions, the assessee has successfully discharged the onus cast on him and the presumption u/s 132(4A) cannot be drawn against him. In the result, there is no basis for impugned addition in the hands of the assessee and the same is hereby directed to be deleted. In the result, the appeal of the assessee is allowed. Addition u/s 69A - Addition based on assessee's statement recorded u/s 132(4) - THAT:- Except at one place where savings have been written against the amount of ₹ 876,197, there is no mention of any particulars in terms of nature of transactions, parties with whom the transactions were undertaken, the date of such transactions, etc. Even the AO in the assessment order at para 5 of his order has stated that “it appears to be payment received in cash by the assessee”. Even there is no question which has been raised to the assessee as part of his statement recorded u/s 132(4) - where the AO himself is not clear about the nature of transaction which is the very foundation for determination of taxability of such transaction, the tax liability on such transaction cannot be fastened on the assessee. At the same time, the document so found reveal some work done by the assessee and given that the assessee is in the diary business, the net savings so determined can reasonably be related to the diary business already disclosed in the return of income in absence of any finding or corroboration relating to any other source of income. In the result, there is no basis for impugned addition in the hands of the assessee and the same is hereby directed to be deleted. In the result, the appeal of the assessee is allowed.
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