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2016 (3) TMI 91 - ITAT AHMEDABAD

2016 (3) TMI 91 - ITAT AHMEDABAD - TMI - Addition on account of unaccounted cash receipts - Held that:- Undisputedly the impugned addition is made only on the basis of loose paper which shows that certain payments were made for acquiring the share in the partnership firm. Assuming yet not accepting that the said payment was actually made but then it was made for acquiring the share in the partnership firm. This by its very nature is a capital receipt in the hands of the Assessee. Therefore assum .....

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Revenue authorities. We have given a thoughtful consideration to the order of the authorities below. We have also gone through the affidavit filed before the ld. CIT(A). In our considered opinion the ld. CIT(A) should not have rubbished the affidavit without going into the merits. Therefore in the interest of justice and fair play, we restore this issue to the files of the A.O. The A.O is directed to decide the issue afresh in the light of the contents of the affidavits. Keeping in mind, the rat .....

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shing inaccurate particulars. We draw support from the decision of Hon’ble Supreme Court in the case of Reliance Petro Products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT ]. - Decided in favour of assessee - IT(SS)A. Nos: 115 to 120/AHD/2011 & 788/AHD/10, IT(SS)A. Nos: 259 & 260/AHD/2011, IT(SS)A. Nos: 215 to 219/AHD/2011, IT(SS)A. Nos: 265 to 267/AHD/2011, IT(SS)A. Nos: 220 to 225/AHD/2011, IT(SS)A. Nos: 227, 245, 247, 261 to 264, 505/AHD/2011 - Dated:- 22-1-2016 - SHRI S.K. YADAV, JUDICIAL MEM .....

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plaining the facts in issues qua the grounds of appeal. The ld. D.R. fairly conceded that the details exhibited in the charts are true to the facts. The first common grievance relates to the applicability of Section 44AF of the Act. The learned counsel fairly conceded that under instructions he is not pressing this ground. Therefore the ground relating to the applicability of Section 44AF along with sub grounds are dismissed. The second common grievance relates to the addition on account of low .....

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tion 153A of the Act. Additions on account of household expenses have been made only on the assumption that the Assessee has not shown sufficient withdrawals for household expenses and addition for unexplained investment have been made on the basis of valuation made by the DVO on the instructions of the Assessing Officer. 4. It would be pertinent to mention here that both these additions have been made without there being any incriminating material found at the time of search. It is now well set .....

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rli Agro Products. The relevant portion of the decision in the case of Continental Warehousing (supra) reads as under:- "Once it is held that the assessment has attained finality, then the AO while passing the independent assessment order u/s. 153A r.w. s 143(3) of the I.T. Act could not have disturbed the assessment/reassessment order which has attained finality, unless the materials gathered in the course of the proceedings u/s. 153A of the Income Tax Act establish that the reliefs grante .....

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the Hon'ble ITAT is correct in narrowing down the scope of assessment u/s. 153A in respect of completed assessments by holding that only undisclosed income and undisclosed assets detected during search could be brought to tax? 2. Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is correct in law in holding that the scope of Sec. 153A is limited to assessing only search related income, thereby denying Revenue the opportunity of taxing other escaped income, that .....

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ot;. 10.3. In the facts of the case in hand are considered in the light of the aforementioned decision of the Hon'ble Jurisdictional High Court. Undisputedly, during the course of the search and seizure operation, not a single piece of paper was found. 5. Considering the facts in the light of the ratio laid down by the Hon ble High Court of Bombay (supra), we do not find any reason/justification in making the impugned additions. Accordingly we set aside the findings of ld. CIT(A) and direct .....

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ngs, a hand written agreement dated 01.07.2001 was found and seized which contained certain specific conditions with regard to settlement of account between parties both in cash as well as by cheque. The concerned parties are the partners of partnership firm of M/s. J.P. Marketing, namely Shri Champaklal Kasat, Shri Rajesh Kasat and Shri Dinesh Kasat. As per this agreement Shri Champaklal Kasat would pay ₹ 10 lacs to Shri Dinesh Kasat and Shri Rajesh Kasat, for surrendering their interest .....

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the Assessee reiterated what has been stated before the lower authorities. It is the say of the counsel that the additions have been made on the basis of a loose paper found at the time of search, the said loose paper was found from the possession of Shri Champaklal Kasat and not from the possession of the Assessee. Except for this the Revenue has no documentary evidence to make the addition. Per contra, the ld. D.R. strongly supported the order of the Revenue authorities. We have given a though .....

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on has taken place it is a capital receipt which cannot justify the impugned additions. We accordingly set aside the findings of ld. CIT(A) and direct the A.O to delete the impugned addition of ₹ 5 lacs made on account of unaccounted cash receipts. 8. The cross appeals of the Revenue will become otiose qua are decisions in the case of assessee s appeal. 9. Having decided the common issues involved in the captioned appeals we will now take up the issues which are independent. 10. (1) IT(SS) .....

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claim. The A.O made the addition of ₹ 18,000/- u/s. 68 of the Act. 11. The Assessee carried the matter before ld. CIT(A) and to substantiate the claim an affidavit was filed. The ld. CIT(A) did not accept the affidavit stating that the assessee could not explain why the same was not filed before the A.O. Thus the additional evidence in the form of affidavit was not accepted. Aggrieved by this the assessee before us. The counsel for the assessee reiterated what has been stated before the l .....

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contents of the affidavits. Keeping in mind, the ratio laid down by the Hon ble Supreme Court in the case of Mehta Parekh & Company 30 ITR 181. This ground is treated as allowed for statistical purposes. 12. (2) IT(SS)A No. 221/Ahd/2011. The Assessee is aggrieved by the addition of ₹ 5 lacs treated as unaccounted cash receipt on surrender of interest in M/s. J.P. Marketing. This issue has been decided by us in ITA NO. 116/Ahd/2011 qua ground no. 3 of that appeal. For our detailed discu .....

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o delete the addition of ₹ 4,59,000/-. 15. (5) IT(SS)A No. 245/Ahd/2011 Champaklal Kasat. The sole grievance of the Assessee relates to the addition of ₹ 10 lacs treated as unexplained expenditure. Identical issues have been considered by us in the hands of Rajesh Kasat and Dinesh Kasat who were the alleged recipients of this amount equally. Since in those cases, we have discarded the evidentiary value of the loose paper, for similar reasons, we direct the A.O to delete the addition .....

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