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TMI Blog2023 (7) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... and Developers on 11-03-2014 During the course of search proceedings evidences related to inter alia, payment of an money (cash) by venous flat purchasers has been found. When the evidences were confronted to the directors and promoters of the Hinanandani Group they accepted the fact that on money was received an sale of venous flats. The identification of the buyers who have paid On money (cash) for purchase of flats from the Hiranandani Group had been made. On perusal of the information, it is noticed that the assessee Shri Rejesh Ravjibhai Patel has purchased flat from Hiranandani Group by paying on money (cash) to the tune of Rs 1,11,89,600/- during the Financial Year 2006-07 relevant to the AY. 2007-08. S. No. Name of the Concern of Hiranandani Group to whom "On Money" is paid Amount 1 Crescenda Associates Rs. 1,11,89,600/- Total Rs. 1,11,89,600/- In view of the above, I have reasons to believe that the income of the assessee of Rs 1,11,89,600/- has been escaped assessment within the meaning of the provisions of Section 147 of the IT Act, 1961. 3. Accordingly, notice u/s. 148 was issued to the assessee on 28/03/2014. In response to the notices, assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/-by the assessee in connection with the purchase of flats: i. It is an undisputed fact that the asssessee booked flat no 2801 A in Torino Building. These flats appear in the contents of the pen drive seized during the search and seizure in the Hiranandani group of cases. It proves that the contents of the pen-drive were true. ii. It is also a fact that the assessee made payment and acquired the flats from Crescendo Associates (a concern of Hiranandani Group). The employees and promoters of the Hiranandani group have admitted the receipt of on-money' from buyers of the different projects of the group. Therefore, the fact of payment of on-money by assessee as recorded in the contents of pen-drive cannot be untrue. iii. No businessman will record any receipt of 'on-money' without receiving it. Therefore the contents of pen drive cannot be doubted. iv. It is a common knowledge that 'on-money' is paid/received in purchase and sale of flats. However, in these cases, no receipt is issued for the 'on-money' received. In such cases the direct evidence is difficult to find. However, in the instant case, concrete evidence is found in the form of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed are based on information received from Investigation Wing and it is based on borrowed satisfaction and there is no independent application of mind by the ld. AO. Secondly, she submitted that once any document or material is found in the course of search and if anything pertaining to or relating to other person is found then only recourse is to acquire jurisdiction u/s. 153C. 9. After hearing both the parties on the legal ground, we find that first of all, in so far as reasons recorded are concerned, there was a categorical information found during the course of search proceedings that payment of On-money was made by cash by various persons and this information was based on incriminating material in the form of pen drive found from the search in Hiranandani group; and that pen drive also contained the details of the assessee wherein during the F.Y. 2006-07, it was shown that assessee had paid cash of Rs. 1,11,89,600/- for purchase of certain flats from Crescendo Associates. Once there is tangible material like this, then prima facie any prudent mind will entertain reasons to believe that this amount of On-money which is shown by the assessee for the purchase of flats in the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumbent upon Assessing Officer to carry out some enquiry from the builder (Crescendo Associates, part of Hiranandani group) to get further details as to when and how the cash payment was made by the assessee. If the ld. AO is relying heavily on the statement of Shri Ranjan Hiranandani, then he should have been put to cross examination if his statement was the sole basis for drawing adverse inference because his statement merely states that he has received On-money in cash and nowhere has he given any specific name of any person or name of the assessee. Ld. Counsel has also pointed out that it is a matter of record that even Shri Ranjan Hirandani had retracted from the statement and nowhere has it been stated in their proceedings that they have taken any unaccounted On-money cash specifically from the assessee. Nor anywhere there is any finding that assessee has paid any on-money and veracity of the pen-drive has been established. 12. Be that as may be, whether statement has been retracted or not, however, the ld. AO simply based on an information found from the possession of a third party cannot make an addition and draw adverse inference without carrying out further enquiry and r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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