9911796707
TMI Blog2024 (1) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a sole proprietor of a retail business of readymade ladies dress and fabrics, had shown its total income at Rs. 5,05,980/- by filing its return of income on dated 28/09/2012 under section 139(1) of the Act, which was processed under section 143(1) of the Act on 15/04/2013. 3. Subsequently, on the information received from the DDIT-Tax Investigation Wing 5(4), Mumbai to the effect " that findings arose from search action under section 132 of the Act carried out in the case of M/s Evergreen Enterprises with an undisclosed activity of money lending and borrowing in unaccounted cash loan and interest thereon. As per the information received, the Assessee has lent cash loan of Rs. 3,25,00,000/- in the financial year 2011-12. The information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... borrowing money in cash (unaccounted and undisclosed business). Further, in the course of search, a diary has also been seized wherein inter-alia following entries have been recorded in code words, which reads as under:- "i) Code "E/11/N"- ii) Name as per Ledger "NENSIBHI ELLA" iii) Coded Amount (In"000) - 32500 iv) Contact person "NANCYBHAI - v) F.Y. 2011-12" 6. The Assessing Officer ultimately, on the basis of statement of Shri Nilesh Bharani, and without giving any opportunity of cross examination to the Assessee and by considering the aforesaid entries in the diary seized during the course of search, made the addition of Rs. 3,25,000,00/- under section 69A of the Act. Further, the AO also added an amount of Rs. 39,00,000/- o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside. However still we want to go to the merits of the case. We observe that the Assessing Officer made the additions mainly on the ground that Shri Nilesh Bharani in his statement recorded under section 132(4) of the Act has admitted that he was in the business of lending / borrowing money in cash (unaccounted and undisclosed business). Further, in the course of search, a diary has been seized wherein inter-alia following entries have been recorded and the Assessee's name is also appearing in the same diary in coded word. For clarity ready reference, we are again reproducing the entries relied upon by the Assessing Officer:- "i) Code "E/11/N"- ii) Name as per Ledger "NENSIBHI ELLA" iii) Coded Amount (in "000) - 32500 iv) Contact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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