TMI Blog2014 (11) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... operations, it was considered by the AO that an amount of ₹ 40,00,000 is to be protectively assessed in the hands of the assessee also - The AO has made both the additions as income from coal business and addition of unexplained cash credits on the basis of loose sheets containing rough notings - The CIT(A) while deleting the addition of ₹ 40 lakhs has upheld the addition of ₹ 1,04,73,034, which is not justified – the order of the CIT(A) is set aside and the additions for the AY 2008-09 and 2009-10, allowing the main grounds of the assessee in these appeals – Decided in favour of assessee. - ITA No.1657/Hyd/13, ITA No.1658/Hyd/13 - - - Dated:- 16-9-2014 - Shri B. Ramakotaiah And Smt. Asha Vijayaraghavan,JJ. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer, certain loose sheets belonging to the firm, M/s. Balaji Transport Agency were found and seized during the search proceedings. On examination of the loose sheets, the Assessing Officer concluded that it belonged to the firm in respect of income pertaining to the coal business and accordingly he brought to tax on substantive in the hands of the firm, M/s. Balaji Transport Agency and protective basis in the hands of the assessee towards income from coal business. The Assessing Officer, based on part of the same material seized, made the additions towards unexplained cash credits in the hands of the assessee-partner. 4. Aggrieved by the additions made by the Assessing Officer, appeals were preferred before the CIT(A). Learned CIT(A) del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the documents found during the search are thus dumb documents, which do not convey clearly as to whom the documents belong to, and also as to who has authored the same, and what is the significance of the notings therein. There is thus no clarity in the documents and the evidentiary value is absent. It was also submitted that the Assessing Officer had erred in making additions to the income of the assessee by merely relying on the statements recorded at the time of search and post search period without bringing any corroborative evidence on record. The learned Authorised Representative for the assessee relied on the Circular of the CBDT being No.286/2/2003-IT(Inv), which clearly stated that in cases of search and seizure cases, additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities submitted that the impugned additions are unjustified and should be deleted. In the alternative, the learned Authorised Representative for the assessee also submitted that the Assessing Officer and the CIT(A) ought to have allowed telescoping of additions made in the assessment years 2008-09 of ₹ 1,04,73,034 in assessment year 2009-10. He also submitted in the alternative that the additions made in the hands of the assessee, should be considered for being telescoped against the additions offered/sustained in the assessments for the years under appeal in the case of the firm. 8. The learned Departmental Representative on the other hand, strongly supported the orders of the Revenue authorities and submitted that the additions t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tches with irregular workings and rough notings on some of the papers, and excepting for one or two, none of these pages contain the signature of anyone. These loose papers, besides lacking any signatures, do not reflect any clarity as to whom they belong to and who has authored them, much less indicative of the transactions involved or the parties to such transactions. In the circumstances of the case therefore, the only inescapable conclusion that can be arrived at is is that those loose sheets are mere dumb documents, having no evidentiary value, unless corroborative evidence has been brought on record. Admittedly, in this case, no corroborative evidence has been brought on record by the Revenue authorities, to identify and link up the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. K. Subba Rao, assistant of the Managing Partner, whereas, the other two scribbling pads contain the hand writing of Sri. K. Ch. Subba Rao. These scribbling pads mainly show cash payments made to 'truck procurement agents' for arranging trucks and making cash advances to the truck owners in various places from where coal etc., is to be loaded. There are instances when the truck procurement agents return the cash given to them in advance by the partners of the firm. The entries in the seized documents clearly indicate that the assessee is pooling in cash from all the available sources to make advance payments to the truck procurement agents, who in turn make cash payments to the truck drivers. These entries further substantiate the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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