TMI Blog2017 (1) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Under the circumstances, the AO could have added these amounts only if he had made a searching enquiry into all the circumstances. That the amounts were reflected by way of cheques and these cheques were entered in the charts is not in dispute. If such is the case, whether those amounts were reflected in the assessee’s Bank accounts or not and were encashed by some other entity was a matter of appropriate enquiries. The AO’s failure to do so could not have resulted in the assessee being taxed for those amounts. - Decided in favour of assessee - ITA 804/2016 - - - Dated:- 6-1-2017 - MR. S. RAVINDRA BHAT MR. NAJMI WAZIRI JJ. Appellant Through: Mr. Ashok Manchanda, Advocate. Respondent Through: Mr. Inder Paul Bansal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . After an appreciation of overall circumstances, including the materials presented before it, the remand report considered by the CIT (A) as well as other materials brought on the record during the course of the appellate proceedings before the CIT (A), the ITAT was of the opinion that the particulars and details of the cheques etc. reflected in the chart, which formed the sole basis for addition of ₹ 1.67 crores, could not be attributed to it. Tellingly, the ITAT, observed as follows:- i. Above documents are not seized from the premises of the assessee but at the premises of third party who is neither the director nor the shareholder of the company. However neither the ld. AO as well as The Ld. CIT (A) has led any evidence th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it cannot result in to addition in the hands of the assessee unless it is cleared in the bank account of the appellant. iii. During assessment the appellant was not confronted with the statement of the person from whose possession these chart and also the counterfoils of the cheques of six companies were found. In fact, there is no averment in the order that any such statement is in possession of revenue. iv. Furthermore the name of all the parties in that particular statement wherein bookings in the name of those parties have been shown, appellant has filed confirmation of those parties stating that they have not booked any such premises and also apparently no payment have been made. On these confirmation Id. AO has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry operator or the assessment orders of those companies operated by him. vi. Further assuming that those companies are the bogus companies, and then on looking at the chart we found that there are columns of cash . If the amounts are the bogus amount introduced by the appellant company then we failed to understand that how the cash is also be received from those companies, whereas in general only commission is required to be paid to the entry provider and no cash is receivable from them. viii. Further, it remains uncontroverted that there was no project in the name of the appellant in impugned assessment year as there was no permission also. The facts of the acquisition of land are submitted by the Ld. AR and also stated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they have not made any bookings and have not paid any sum to the appellant company, the facts of that case are distinguishable. 5. The learned counsel for the Revenue sought to urge that the ITAT s decision is erroneous because the AO had investigated and found that the assessees were bogus and the amounts were not found to be genuine. It was argued that the ITAT was in error in reversing the concurrent factual findings. 6. This Court is of the opinion that the ITAT is the final fact finding authority. Unless its appreciation of the circumstances and facts is manifestly perverse or contrary to the record, the High Court, in exercise of its appellate powers as the third forum of review, as it were, would be reluctant to interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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