9911796707
TMI Blog2005 (3) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... s successfully discharged its initial onus to prove that the paper found and seized from its premises does ot belong to it and the contents thereof do not relate to the assessee in any way?" The present Reference relates to the Assessment Years 1983-84. 3.Briefly stated the facts giving rise to the present Reference are as follows:- 4.The respondent assessee has been assessed to income tax in the status of a registered firm. It is engaged in the money lending business on pawn broking and pledges. It had declared the income at Rs.25,843/-. Its premises were searched on 27th October, 1983 when a paper was found and seized from the debris in the shop premises. The said paper contained the entries as under:- 12/7 48,000 10% 4,800 15/7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... replies submitted by the assessee in response to the show cause dated 9.9.1985 issued by the I.T.O. In relation to the aforesaid seized paper, the assessee clearly stated that the said paper does not belong to the assessee firm or its partners or any connected person. He also explained that this is written in english and none of the partners or employees of the firm know english. The assessee further submitted that no unaccounted assets belonging to the assessee firm were found during the course of search. It was stated that the said seized paper neither belonged to him nor the entries recorded therein pertained to the assessee firm. It is true that where a person is found in possession of anything, the onus of proving that he was not its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... choose to examine the partners or the employees of the assessee firm in relation to the aforesaid seized paper. The paper found and seized from the premises of the assessee nowhere contains any description that this represents the amount of loan given by the assessee to any person. After receiving the reply from the assessee in response to the show cause notice dated 9.9.1985 the minimum effort which was expected of the learned assessing authority was to record the statement of the partners and the employees and thereafter conclusively prove that the said seized paper belonged to the assessee and the entries recorded therein represents assessee's unexplained investments. No such efforts whatsoever were made by the assessing authority. We ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o, the addition made by the Assessing Officer and confirmed by the CIT(A) deserves to be cancelled. 4.6. Taking an overall view of the facts and circumstances of the case, we are of the view that the addition of Rs.1,35,000 and Rs.14,645 should be cancelled, and the additions therefore deleted." 6.We have heard Sri Shambhu Chopra, learned Standing Counsel for the Revenue and Sri V.K.Agrawal, learned counsel for the respondent-assessee. 7.Learned Standing Counsel submitted that the paper was seized from the respondent's business premisses on 27th October, 1983, which contained details of the amount advanced to various persons and the interest earned thereon. It also contained the dates and the amounts and thus, the Assessing Officer had r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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