TMI Blog2023 (7) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... pinion that undoubtedly, this is an incriminatory material, and it is not open for the assessee to challenge the reliance of Revenue on this document, without explaining the existence of contents of the document. Quantum of addition - when the document itself reads that the payment of interest was only Rs. 1 crore and the balance of Rs. 1,62,85,178/- was clearly shown therein, Revenue may accept or reject the document as a whole. They cannot say that this document proves the charging of interest and its rate, but ignore the payment of Rs. 1 crore alone. Revenue is accepting the rate of interest and charging thereof, but they are not accepting the quantum of payment. It is impermissible. Revenue has to accept or reject the documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961 (for short the Act ) was conducted in the case of M/s. Prathima Infrastructure Pvt. Ltd., and its associated entities on 06/02/2020, and the assessee was also covered in the search and seizure operation. In response to the notice under section 153C of the Act, the assessee filed the return of income on 02/11/2021, admitting total income at Rs. 15,72,31,620/-. 3. In back-up of mobile data of the Director of assessee company, impounded during the search proceedings, certain images or sheets were found. The sheet contains details of loan transactions having heading Sri V. Radhakrishna Loan . As per the sheet, total principal amount of this loan was Rs. 5,00,00,000/- and interest @24% p.a. was being charged. The said loan was sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of CBI vs. V.C. Shukla [1998] AIR Vol.3 SC 410, relying upon the loose sheets to make the addition, cannot be sustained. 6. Learned CIT(A) perused the paper book filed by the learned AR and from the ledger account of Shri V. Radhakrishna, which shows that the assessee borrowed Rs. 5 crores from Shri V. Radhakrishna and other entities are tallying with the entries to be found in the WhatsApp document is not a dumb document and it establishes that the assessee was charged interest @24% on such borrowings. Since the assessee did not give any accounting treatment to the interest in the books, learned CIT(A) believed that such an interest expense was met by the assessee in cash and out of books. On this premises, learned CIT(A) held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rowings are tallied and as rightly found out by the learned CIT(A), the data found on the interest computation sheet directly matches with the ledger accounts in the books of the assessee and, therefore, the interest computation did not found in WhatsApp chat is not a dumb document and got an evidentiary value. When such a document recovered from the possession of the assessee speaks that the rate of interest was 24% and the assessee did not make any entry about the interest component in its books, the authorities have rightly held that the interest component must have been paid by the assessee out of books and, therefore, such an un-explained expenditure is rightly brought to tax under section 69C of the Act. 10. We have gone through th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eof, but they are not accepting the quantum of payment. It is impermissible. Revenue has to accept or reject the documents as a whole. Since we are of the considered opinion that this document cannot be thrown away without consideration, we accept the same as a whole and reach a conclusion that the assessee paid interest only in part to the tune of Rs. 1 crore and the balance of liability is Rs. 1,62,85,178/-. With that view of the matter, we sustain the addition only to the tune of Rs. 1 crore, which is an interest expense, not to be found in the books and direct the learned Assessing Officer to delete the balance. 13. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court on this the 28th day of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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