TMI Blog2010 (6) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... lso carried out in the office premises of the assessee at 33, Brabourne Road, 5th floor, Kolkata 700 001 on the basis of notice under section 133A issued in the name of Richfield Financial Services Ltd. In response to notice under section 153A, the assessee filed the return of income for the year under consideration declaring the total income at ₹ 1,50,929/-. Thereafter, notices under section 143(2) and 142(1) were issued. In response to these notices, the assessee himself appeared and filed the details as sought for. In the course of the search and seizure operations, the books/documents and papers marked as RK/1 to RK/25 were seized from the assessee s premises. During the course of inquiry before assessment, the assessee furnished page-wise submissions which were examined along with other details. During the course of inquiry before assessment, the AO observed from the seized document that page-3 of RK/8 contained various transactions of receipts and payments under the name and style of A/c BGT .Another acronym BPRL is often found appearing against several transactions. This account showed total receipts of ₹ 71,35,235/- including interest of ₹ 1,87,704/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as continuing for the purpose of common panchnama, does not require any consideration at this stage. 7.1. The only point is whether the presumption u/s. 292C shall be treated as mandatory under the law or whether it shall be treated as a rebuttable presumption and whether, even mandatory presumption about the documents as belonging to the appellant has the conclusive consequence of making the addition in the manner in which the assessment order has done it Page 3 is an account of BGT/BPRL, clients of Shri Kankaria for the month of February, 2002. The account gives a total receipts of ₹ 71,35,235/- ( inclusive of interest of ₹ 22,415/-) in the hands of BGT and BPRL, which includes many cash transactions. Please explain the paper along with evidence. Also give full name, address and PAN of these clients, failing which it will be presumed that the entire receipts along with interest belong to you only. (page 48 at 54 of the paper book, vol. 1). In this context the following observations of the Apex Court in the case of P.R. Metrani vs. CIT (287 ITR 209, 220 about three types of presumptions under the law are relevant A presumption is an inference of fact drawn from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the control and possession of the assessee also goes to prove that the transactions contained therein belong to the assessee within the meaning of provisions of section 292C. Pressure of work, forgetfulness, short memory recall, etc. are only alibi in order to derail investigation on the matter by the investigating/assessing authority. The Assessing Officer arrived at the above conclusion after issue of the notice in which it was stated that the appellant must give details of the names and addressees and PAN of the persons to whom the transactions recorded on page no. 3 of RK/8 relate, and that the failure of the appellant would result in action on the presumption that the entire receipts along with interest belonged to the appellant. 7.3 The presumptions u/s. 292C are that the document belongs to the persons from whose possession and control it was found. The second presumption is that the contents of such documents are true. The third presumption is that the signature and handwriting shall be taken to be that of the person from whom the documents were found. Since the documents are a Computer print out, reference to presumption about the signature and handwriting is not re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n deleting the addition of ₹ 41,54,054/- made on the basis of seized documents RK-8, which was seized from the possession of the assessee in the course of search seizure operation. Therefore, he requested to set aside the orders of the Ld. CIT(A) and restore that of the AO. 7. On the other hand, the Ld. Counsel, appearing on behalf of the assessee, has relied on the orders of the Ld. CIT(A) and further pointed out that the assessee had no knowledge about the entries recorded in the seized paper RK-8 or about the transactions. The assessee filed a sworn affidavit dated 26.11.07 stating that the document is a computer generated sheet with figures indicating working of interest involved in non-descript cash transfers and the dates in the transaction show that they occurred in the first quarter of calendar year 2002 for which the assessee was unable to recall any explanation as these transactions are related to the period of about five years back. The Ld. Counsel also submitted that on account of search action at the residence of the assessee, the assessee remained at the residence from the morning of 12-01-2006 till early morning of the next day. The Ld. Counsel stated tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing the rival submissions and on careful perusal of the materials available on record, it is observed that the Ld. CIT(A), after taking into consideration the submissions of the Ld. Counsel and the facts of the case, has given an elaborative finding, while deleting the addition made by the AO. It is also observed that the assessee has not been able to explain the contents of the document which is an old document and was found in the pile of papers, 411 pages of which were seized. In our opinion, the assessee was not wrong in stating that he is not in a position to explain the contents of the only one page about which the dispute has arisen after about five years. It is further observed that the AO arrived at the conclusion after issuing of the notice under section 142(1) wherein it was stated that the assessee must give details of the names and addressees and PAN of the persons to whom the transactions recorded at page no.3 of RK/8 relate, and that the failure of the assessee would result in action on the presumption that the entire receipts along with interest belonged to the assessee. Thus, the AO acted with the presumption about which the assessee has been warned in the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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