The DCIT, Central Circle-1, Surat V. M/s. Evergreen Industries (P) Ltd., Surat

ITSSA 540/AHD/2010

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2336 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-07-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 04-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAH
• Keywords: Unexplained cash credit; Unexplained expenditure; Business income; Income from undisclosed sources; Search and seizure; Document seized; Fair market value; Valuation report; Deemed dividend; Documents seized
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) IT(SS)A. NO: 540 & 483/AHD/2010 (ASSESSMENT YEAR: 2008-09) THE DCIT, CENTRAL CIRCLE- 1, SURAT M/S. EVERGREEN INDUSTRIES (P) LTD., N-TOWER, GR. FLOOR, ASHIRWAD PALACE, JAMNAGAR, GHOD-DOD ROAD, SURAT V/S V/S M/S. EVERGREEN INDUSTRIES (P) LTD., N-TOWER, GR. FLOOR, ASHIRWAD PALACE, JAMNAGAR, GHOD-DOD ROAD, SURAT THE DCIT, CENTRAL CIRCLE- 1, SURAT (APPELLANT) (RESPONDENT) PAN: AAACE5088R APPELLANT BY : SHRI M.R. SHAH, AR RESPONDENT BY : SHRI SANJAY AGRAWAL, CIT/ D. R. ( )/ ORDER DATE OF HEARING : 26 -07-201 6 DATE OF PRONOUNCEMENT : 09 -08-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 2 1. IT(SS)A NOS. 540 & 483/AHD/2010 ARE CROSS APPEALS B Y THE REVENUE AND THE ASSESSEE PREFERRED AGAINST THE ORDER OF LD. CIT(A)-II, AHMEDABAD DATED 16.03.2010 PERTAINING TO A.Y. 2008- 09. 2. AS BOTH THESE APPEALS WERE HEARD TOGETHER, THEY ARE DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. IT(SS)A NO. 540/AHD/2010 REVENUES APPEAL 3. THE GRIEVANCE OF THE REVENUE READS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.94,65,000/- BY RESTRICTION THE NET PROFIT MARGIN ON UNACCOUNTED TURNOVER TO 15% INSTEAD OF 16 % AS RELIED BY ASSESSING OFFICER TAKING INTO ACCOUNT THE VARIOUS FACTORS DIS CUSSED IN THE ASSESSMENT ORDER. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.1,33,76,900/- STATIN G THAT SALE RECEIPTS FROM THE FLAT SOLD TO SHRI MAGANBHAI M. ROHIT WERE ALREADY INCLUD ED IN THE TOTAL 'ON MONEY' SALE CONSIDERATION OF RS.1,62,16,56,250/- ESTIMATED BY THE ASSESSING OFFICER IGNORING THE FACTS THAT THE ASSESSING OFFICER HAD O NLY INCLUDED THE 'ON MONEY' RECEIPT @RS.700/- PER SQ. FEET AND THEREFORE, THE D UPLICATION WAS ONLY TO THE EXTENT OF RS.26,60,000/- (3800 X RS.700/- PER SQ. F EET) AND THEREFORE, BALANCE ADDITION OF RS.1,07,16,900/- WAS FULLY JUSTIFIED. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 12,78,538/- ON ACCO UNT OF DEEMED DIVIDEND U/S 2(22)(E) OF THE IT. ACT, IN RESPECT OF LOANS RECEIV ED FROM M/S SHAKTI ORGANIZERS PVT. LTD., AND M/S EVEREST ORGANIZERS PVT. LTD. EVE N WHEN THE ASSESSING OFFICER HAD CLEARLY BROUGHT OUT IN THE ASSESSMENT ORDER THA T ALL THE CONDITIONS LAID DOWN BY THE APEX COURT IN THE CASE OF NAVNIT LAI C. ZAVE RU VS KK SEN, APPELLATE ACIT((1964) 56 ITR 198 (SC) AND SMT. TARULATA SHYAM AND OTHERS VS CIT. WEST BENGAL (1977) 108 ITR 345 (SC) FOR HOLDING THE LOAN /ADVANCE RECEIVED AS DEEMED IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 3 DIVIDEND WERE FULLY SATISFIED IN ASSESSEE'S CASE AN D THE CASE RELIED BY THE CIT(A) WERE ON DIFFERENT SET OF FACTS AND CIRCUMSTANCES. 4. ASSESSEE IS IN THE BUSINESS OF CONSTRUCTION OF RESI DENTIAL FLATS. RETURN FOR THE YEAR WAS FILED ON 30.09.2008 DECLARING TOTA L INCOME OF RS. 28,89,31,220/-. THE RETURN WAS SELECTED FOR SCRUTIN Y ASSESSMENT AND ACCORDINGLY STATUTORY NOTICES WERE ISSUED AND SERVE D UPON THE ASSESSEE. A SEARCH AND SEIZURE OPERATION WAS CONDUC TED AT THE BUSINESS AND RESIDENTIAL PREMISES OF THE ASSESSEE A ND ITS DIRECTOR. 5. DURING THE COURSE OF THE SEARCH AND SEIZURE OPERATI ON, THE MANAGING DIRECTOR OF THE ASSESSEE COMPANY SHRI GOPALKUMAR DO KANI MADE A DISCLOSURE OF RS. 25 CRORES IN THE ASHIRWAD PALACE PROJECT ON ACCOUNT OF UNACCOUNTED NET INCOME FROM ON-MONEY. 6. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, TH E A.O. ISSUED A SHOW CAUSE NOTICE TO THE ASSESSEE WHICH READS AS UN DER:- 6. SHOW CAUSE NOTICE: THE CASE WAS HEARD TIME TO TIME AND AFTER DETAIL VERIFICATION BY THE DEPARTMENT AND IN VIEW OF THE ABOVE FACTUAL MATRIX A SHOW CAUS E NOTICE WAS ISSUED VIDE LETER DATED 07.12.2009 WHICH READS AS UNDER:- IT IS SEEN THAT THE ASSESSEE-COMPANY HAD DEVELOPED A PROJECT NAME ASHIRWAD PALACE COMPRISING 461 FLATS TOTAL SALABLE CONSTRUCT ION AREA IS 16,78,450 SQ. FT. DURING THE COURSE OF SEARCH OPERATION VARIOUS INCRI MINATING DOCUMENTS AND EVIDENCES WERE FOUND AND WHICH CLEARLY INDICATE THA T THE COMPANY HAD RECEIVED HIGHER SALE PRICE WHICH THE SAME HAD NOT SHOWN IN T HE BOOKS OF ACCOUNTS AND AT THE SAME TIME THE COMPANY HAD ALSO INCURRED VARIOUS EXPENSES WHICH THE SAME IS NOT RECORDED IN THE BOOKS. DURING THE COURSE OF SEA RCH YOU HAD ALSO DISCLOSED RS. 25,00,00,000/- AS UNACCOUNTED NET INCOME FROM ON-MO NEY IN A.Y. 2008-09 WHICH IS A SELF EVIDENCE THAT THE COMPANY RECEIVED UNACCO UNTED SALE PRICE AND IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 4 UNACCOUNTED EXPENDITURE. IT CANNOT BE DISPUTED THAT PART OF THE RECEIPT AND EXPENSES WERE NOT DISCLOSED TO THE I.T. AUTHORITIES AND, THEREFORE, THE ACCOUNTS OF THE ASSESSEE ARE NOT COMPLETE. THEREFORE YOU ARE RE QUESTED TO SHOW CAUSE, WHY THE BOOKS OF ACCOUNTS SHOULD NOT BE REJECTED U/S. 1 45(2). FURTHER DURING THE COURSE OF SEARCH OPERATION VARIO US INCRIMINATING DOCUMENTS AND OTHER EVIDENCES WERE FOUND FOR WHICH THE BRIEF DETAILS ARE AS UNDER: SHRI ANOOP DEEPCHAND AGARWAL, WHO HAD BOOKED THE FL AT NO. I-717 IN ASHIRWAD PALACE STATED IN HIS STATEMENT ON OATH ON 15.02.200 8 THAT THE PRICE OF THE FLAT FINALIZED WAS RS. 45,61,000/- AS AGAINST THE PRICE AGREED TO BE DOCUMENTED OF RS. 276,61,000/-. HE ALSO STATED ON OATH THAT THE DIFFE RENCE AMOUNT OF RS. 19,00,000/- WAS PAID BY HIM IN CASH. THE FLAT I-717 ADMEASURED 3,800/- SQ. FT. OF SUPER BUILT- UP AREA. THUS, ON-MONEY COLLECTED ON SALE OF THIS F LAT IS @ RS. 500/- PER SQ. FT. SHRI MAGANBHAI B. ROHIT, A NON-RESIDENT, IN HIS STA TEMENT ON OATH RECORDED DURING THE COURSE OF POST-SEARCH ENQUIRIES ON 25-03 -2008 ADMITTED ON OATH THAT HE HAD PAID FOR THE FLAT NO. D-1106 IN ASHIRWAD PAL ACE AT THE RATE OF RS. 3,300/- PER SQ. FT. HE ALSO STATED THAT AS AGAINST THE PURC HASE PRICE AT THE RATE OF RS. 3,300/- SQ. FT., HE HAD PAID RS. 29,77,000/- ONLY B Y CHEQUE AND THE BALANCE AMOUNT WAS PAID IN CASH. A DIARY CONTAINING WRITTEN PAGES 1 TO 13 WAS FOUND FROM THE PREMISES OF ASHIRWAD PALACE PROJECT. THIS DIARY WAS SEIZED AS S ERIAL NO. 1 OF ANNEXURE AS TO PANCHNAMA DATED 15.02.2008. THIS DIARY CONTAINED TH AT THE RATE PER SQ. FT. WAS RS. 3,000/- AND MORE. ONE OF THE PERSONS WHO HAS PURCHASED FLAT IN ASHIRW AD PALACE IS SHRI ANIL MOHANLAL KHURANA (PAN- AMYPK1447R), RESIDING AT R-2 11, SURYA DARSHAN APARTMENT, CITY LIGHT ROAD, SURAT. HE HAS PURCHASED FLAT NO. 329 ADMESURING 3800 SQ. FT. IN THE THIRD FLOOR OF BLOCK NO. N IN ASHIRWAD PALACE PROJECT. THE SALE DOCUMENT IN HIS FAVOUR IS SEEN TO HAVE BEEN EX ECUTED ON 05.11.2007 FOR A SALE PRICE OF RS. 30,41,000/- @ RS. 800/- PER SQ. F T. INCLUDING PROPORTIONATE COST OF LAND. THE PAYMENTS AGGREGATING TO RS. 30,41,000/ - ARE SEEN TO HAVE BEEN PAID IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 5 BY CHEQUES. THIS FLAT, HOWEVER, IS SEEN TO HAVE BEE N VALUED BY SHRI JAYESH A. KATIRA, A GOVT. APPROVED REGD. VALUER (REGN. NO. CA T-1/18/2003-04) AT THE RATE OF RS. 2000/- PER SQ. FT. AT RS. 76,00,000/-. THIS FACT CLEARLY INDICATES THAT ON- MONEY OF NOT LES THAN RS. 1,200/- (RS. 2,000/- -- RS. 800/-) WAS BEING COLLECTED. SHRI GOPAL DOKANIA HAS ADMITTED THAT THE COMPANY HA D BEEN RECEIVING ON-MONEY ON SALE OF FLATS IN ASHIRWAD PALACE PROJECT AND T HE COMPANY HAD EARNED A NET ON-MONEY INCOME OF RS. 25,00,00,000/- DURING F.Y. 2007-08. IN THE LIGHT OF THE SEIZED DOCUMENTS AND OTHER EVID ENCES MENTIONED ABOVE, IT IS CLEAR THAT THE EXTENT OF ON-MONEY COLLECTED VARIE D FROM TIME TO TIME AND PERSON TO PERSON AND THE MINIMUM ON-MONEY IS RS. 500/- PER SQ. FT. WHICH REACHED UP TO 2475 PER SQ. FT. IN THE MARCH 2008. THE TOTAL SALEABLE SUPER BUILT-UP AREA WAS OF 16,82 ,900/- SQ. FT. CALCULATED ON THE ABOVE BASIS, THE TOTAL ON-MONEY FAR EXCEEDS FROM RS . 25,00,00,000/-, THE PROFIT ON THE UNACCOUNTED ON-MONEY RECEIPT ADMITTED BY YOU. FOR JUSTIFYING THE PROFIT ON ON-MONEY, DECLARED BY YOU, IT IS REQUIRED BY YOU TO GIVE THE DETAILS OF EXPENSES WHICH HAVE NOT BEEN CL AIMED IN THE BOOKS OF ACCOUNTS. THE ONUS IS ON YOU TO ESTABLISH EXPENDITURE INCURRE D BY YOU TO PROVE REASONABLE BASIS FOR COMPUTATION OF PROFIT OUT OF THE SAID ON- MONEY RECEIPT. PLEASE FURNISH THE DETAILS OF RELEVANT UNACCOUNTED EXPENDITURE WHI CH HAVE BEEN INCURRED BY YOUR, BUT YOU HAVE OMITTED TO CLAIM THEM IN THE REG ULAR BOOKS OF ACCOUNTS. MERELY STATING THAT WHATEVER INCOME WAS DISCLOSED DURING T HE TIME OF SEARCH WAS THE PROFIT CHARGEABLE TO TAX, WITHOUT PROVIDING BASIS F OR THE SAME, WILL NOT BE ACCEPTABLE. IN CASE OF FAILURE TO FURNISH THE ABOVE DETAILS, THE INCOME DISCLOSED BY YOU DURING THE SEARCH PROCEEDING WILL NOT BE ACCEPT ABLE AND PROFIT ON ON-MONEY WOULD BE WORKED OUT ON THE BASIS OF EVIDENCES ON RE CORD WITHOUT GIVING ANY FURTHER OPPORTUNITY TO YOU. 7. ASSESSEE FILED A DETAILED REPLY VIDE LETTER DATED 1 6.12.2009 WHICH READS AS UNDER:- ASSESSEE COMPANY NAMELY M/S. EVERGREEN INDUSTRIES P VT. LTD. DECLARED RS. 25 CRORES, AS NET MONEY INCOME ON SALE OF FLATS IN ASH IRWAD PALACE PROJECT. THE IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 6 DIRECTOR OF THE COMPANY SHRI GOPALBHAI DOKANIA DECL ARED RS. 11.25 CRORES IN HIS INDIVIDUAL CAPACITY, SO TOTAL DISCLOSURE OF THE GRO UP WAS TO THE TUNE OF RS. 36.25 CRORES. THE DISCLOSURE RELATED TO PROJECTS OF M/S. ASHIRWAD PALACE. ASSESSEE DIDNT KEEP ANY RECORD OF DERIVING THE ADD ITIONAL INCOME. NO INCRIMINATING DOCUMENTS WERE FOUND IN THE COURSE OF THE SEARCH REGARDING ADDITIONAL INCOME. THE ADDITIONAL INCOME DECLARED I S PURELY VOLUNTARY RELATING TO PROJECTS OF M/S. ASHIRWAD PALACE. ASSESSEE HAS NOT MAINTAINED ANY RECORD OF THE RECEI PT OF ON MONEY AND NO EVIDENCE WAS FOUND IN THE COURSE OF SEARCH TO SUGGE ST THAT ASSESSEE HAS RECEIVED THE ON MONEY. ASSESSEE HAS ONLY DECLARED NET ON-MON EY INCOME OF RS. 25 CRORES. ASSESSEE HAS NOT MAINTAINED ANY RECORD FOR EXPENSES MET OUT OF THE ON-MONEY RECEIVED. SO WHAT THE ASSESSEE HAS DECLARED IS THE UNACCOUNTED NET PROFIT. PROFIT DECLARED BY THE ASSESSEE IN THE BOOKS OF ACCOUNT AN D THE FURTHER PROFIT DECLARED BY THE ASSESSEE OF RS. 25 CRORES IS MOST REASONABLE. N O CORRESPONDING ASSET WAS FOUND AGAINST THE ASSESSEES DISCLOSURE OF RS. 25 C RORES. NEEDLESS TO MENTION THAT EXCEPT TO THE EXTENT OF DI SCLOSURE OF UNACCOUNTED MONEY VOLUNTARILY MADE BY SHRI GOPALKUMAR DOKANIA, NO OTH ER ASSETS WHATSOEVER HAVE BEEN FOUND TO JUSTIFY THE APPLICATION OF THE UNACCO UNTED MONEY AS PROPOSED AND ATTEMPTED TO BE ESTIMATED IN HYPOTHETICAL MANNER BY YOUR HONOUR AND THEREFORE, THE ALLEGATION OF YOUR HONOUR THAT THE TOTAL ON MON EY EXCEEDS THE AMOUNT OF DISCLOSURE IS ABSOLUTELY UNJUST, IMPROPER AND WOULD ONLY LEAD TO UNWANTED LITIGATIONS AND HARASSMENT TO THE ASSESSEE FIRM. ASSESSEE HAS PROVIDED DETAILED EXPLANATION ON EACH AND EVERY MATERIAL FOUND IN THE COURSE OF SEARCH. THE PROFIT DECLARED IN THE BO OKS OF ACCOUNT IS SUPPORTED BY AUDITED ACCOUNTS AND AUDITORS REPORT. NO DEFECT OR OMISSION HAS BEEN FOUND IN REGARD TO ENTRIES MADE IN BOOKS OF ACCOUNT. IN VIEW OF THE ABOVE WE REQUEST YOUR HONOUR NOT TO REJECT OUR BOOKS OF ACCOUNT U/S. 145. REGARDING THE OTHER ISSUES IN THE SHOW CAUSE NOTICE S WE MAKE FOLLOWING SUBMISSIONS:- YOUR HONOUR HAS OBSERVED AT PARA NO. 2 & 3 OF YOUR LETTER DATED 08.12,2009 DURING THE COURSE OF SEARCH OPERATION VARIOUS INCRI MINATING DOCUMENTS AND OTHER IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 7 MATERIALS WERE FOUND. BUT IN FACT NO INCRIMINATING AND EVIDENCES WERE FOUND IN THE COURSE OF THE SEARCH. YOUR HONOUR HAS ONLY RELI ED ON THE STATEMENTS OF SHRI SHRI ANOOP DEEPCHAND AGARWAL AND SHRI MAGANBHAI B. ROHIT. HOWEVER, THESE STATEMENTS CANNOT BE CONSIDERED TO BE EVIDENCE FOR THE PURPOSE OF ASSESSMENT IN THE CASE OF ASSESSEE. IN CASE OF SHRI ANIL MOHANLAL KHURANA ONLY THE FAIR MARKET VALUE WAS DETERMINED BY THE REGISTERED VALUER AT RS . 2,000/- PER SQ. FT. THIS DOESNT PROVE THAT HE HAS PAID ON MONEY OF RS. 1,20 0/- PER SQ. FT. THE VALUATION REPORT OBTAINED BY SHRI. MOHANLAL KHURANA WITH INTE NTION TO OBTAIN BANKING FACILITIES. REGARDING THE DIARY ALLEGING THE NOTING OF RATE PER SQ. FT. FOR SALE OF FLATS IT IS SUBMITTED THAT NO SUCH NOTING WAS MADE REGARD ING THE RATE PER SQ. FT. FOR SALE OF FLATS. IT IS THE NOTING REGARDING THE AREA OF FL ATS. IT IS ALSO HUMBLY SUBMITTED THAT IF THE DEPARTMENT IS PROPOSING TO ESTIMATE THE RECEIPTS BY EXTRAPOLATING THE EVIDENCES IN RESPECT OF FEW PROPERTIES, THE PAPERS FOUND IN RESPECT OF EXPENDITURE WILL ALSO HAVE TO B E CONSIDERED AS INCOMPLETE AND IN SUCH A SITUATION, THE UNACCOUNTED PROFIT OF THE ASSESSEE CAN ONLY BE CONSIDERED BY TAKING REASONABLE PROFIT RATIO. 8. THE DETAILED SUBMISSIONS OF THE ASSESSEE D ID NOT FIND ANY FAVOUR WITH THE A.O. WHO WAS OF THE FIRM BELIEF THAT THE O N-MONEY RECEIVED BY THE ASSESSEE IS MUCH MORE THAN THE DISCLOSURE MA DE BY IT. 9. THE A.O. PROCEEDED BY CONSIDERING THE STA TEMENTS OF SHRI ANOOP DEEPCHAND AGARWAL, SHRI ANIL MOHANLAL KHURANA AND SHRI MAGANBHAI B. ROHIT AND CAME TO THE CONCLUSION THAT NOT ONLY THERE WAS UNACCOUNTED SALES BUT ALSO AN UNACCOUNTED PROFI T OVER AND ABOVE THE DISCLOSURE MADE BY THE ASSESSEE. 10. EXTRAPOLATING FIGURES, THE A.O. ESTIMATED UNACCOUNT ED TURNOVER AT RS. 1,62,16,56,250/- AND MADE AN ESTIMATION OF P ROFIT AT RS. 25,94,65,000/-. IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 8 11. ON FURTHER PROBE, THE A.O. NOTICED THAT A SUM OF RS . 25 LACS WAS FOUND CREDITED IN THE BOOKS OF THE ASSESSEE IN THE NAME OF SHRI PRABHUDAS S. VAGDHA AS BOOKING AMOUNT TOWARDS FLAT NO. D-1106. ASSESSEE WAS ASKED TO EXPLAIN THE SAID CREDIT ENTRY IN ITS BOOKS OF ACCOUNTS. ASSESSEE FILED A DETAILED REPLY EXPLAININ G THE SEQUENCE OF EVENTS CHRONOLOGICALLY WHICH READS AS UNDER:- ASSESSEE RECEIVED RS. 25 LAKHS FROM SHRI PRABHUDAS S. VAGDHA AS BOOKING AMOUNT TOWARDS FLAT NO. D 1106 IN ASHIRWAD PALACE. THE SAID AMOUNT WAS RECEIVED THROUGH THREE DIFFERENT CHEQUES DRASWN IN FAVOUR OF ASSESSEE. IT APPEARS THAT THE SHRI PRABHUDAS S. VAGDHA HAS GIVEN THE CHE QUES FROM THE BANK ACCOUNT OF KAMLESH SHARMA PROPRIETOR OF M/S. TIRUPATI ENTER PRISES ENGAGED IN THE BUSINESS OF CHEQUE DISCOUNTING. IT APPEARS THAT M/S . TIRUPATI ENTERPRISES ISSUED CHEQUE IN THE NAME OF ASSESSEE UNDER THE INSTRUCTIO N OF PRABHUDAS S. VADGHA AGAINST RECEIPT OF CASH AND COMMISSION FROM HIM. TH E SAID BOOKING OF FLAT WAS CANCELLED AND ASSESSEE REPAID THE BOOKING DEPOSIT O F RS. 25 LAKHS TO PRABHUDAS S. VAGDHA AGAINST SALE OF FLAT TO SHRI MAGANBHAI B. RO HIT BY ACCOUNT PAYEE CHEQUES. YOUR HONOUR HAS OBSERVED THAT RS. 25 LAKHS WAS DEPOSITED INITO BANK ACCOUNT OF SHRI PRABHUDAS S. VAGDHA. YOUR HONOUR HA S FURTHER OBSERVED THAT AFTER RECEIVING SUCH AMOUNT THE M/S. PRITHVI CORPOR ATION TRANSFERRED THE SAME AMOUNT TO M/S. GANESH TRADERS. MR. SANDEEP PARMAR P ROP. OF GANESH TRADERS ADMITTED THAT FOR THIS CHEQUE, HE PAID RS. 25 LAKHS IN CASH TO MR. N.S. SHARMA AND FINALLY N.S. SHARMA ADMITTED THAT HE PAID THE SAME CASH OF RS. 25 LAKHS TO MR. VIPUL PRAJAPATI FOR THE ASSESSEE COMPANY I.E. M/S. EVERGREEN INDUSTRIES PVT. LTD. ASSESSEE IS NOT RELATED TO EITHER SANDIP PARMAR OR MR. N.S. SHARMA OR MR. VIPUL PRAJAPATI. IN COURSE OF ASSESSMENT PROCEEDINGS, ASS ESSEE FILED DETAILS OF THE ADDRESS OF SHRI PRABHUDAS S. VAGDHA AND HIS PAN. AS SESSEE ALSO FILED THE CONFIRMATION FROM PRABHUDAS S. VAGDHA. AT THE TIME OF SEARCH ASSESSEE HAS GIVEN THE LILST OF THE BOOKING MADE IN HIS PROJECT NAMELY ASHIRWAD PALACE AND THE NAME OF PRABHUDAS S. VAGDHA IS INCLUDED IN THE LIST. IN VIEW OF THE ABOVE FACTS, CIRCUMSTANCES OF THE CASE AND ABOVE EXPLANATION FUR NISHED IT COULD NOT BE ESTABLISHED THAT ASSESSEE HAS PAID RS. 25 LAKHS OUT OF HIS UNACCOUNTED INCOME IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 9 AGAINST OF SUM OF RS. 25 LAKHS CREDITED IN THE NAME OF PRABHUDAS S. VAGDHA ASSESSEE WAS ABLE TO PROVE THE NATURE AND SOURCE OF RECEIPT OF RS. 25 LAKHS. ACCORDINGLY, SECTION 68 IS NOT APPLICABLE IN REGARD TO CREDIT ENTRIES STOOD IN SUPPORT OF SHRI PRABHUDAS S. VAGDHA. 12. THE A.O. DISMISSED THE REPLY OF THE ASSESSEE. THE A .O. FOUND THAT THE CHEQUES ISSUED BY SHRI VAGHA WERE ACTUALLY BEEN ISSUED BY MR. KAMLESH SHARMA AND ON EXAMINING MR. KAMLESH SHA RMA ON OATH. THE A.O. FOUND THAT SHRI KAMLESH SHARMA RECEIVED CA SH FROM SHRI HARSHAL SHAH AND THE CHEQUES WERE ISSUED ACCORDINGL Y. THE A.O. WAS OF THE FIRM BELIEF THAT THE ASSESSEE HAS INTRODUCED HIS OWN UNACCOUNTED MONEY THROUGH THESE CHEQUES ENTRIES AND ACCORDINGLY TREATED RS. 25 LACS AS UNEXPLAINED CASH CREDIT AND MADE THE ADDITION U/S. 68 OF THE ACT. 13. ON FURTHER PROBE, THE A.O. FOUND THAT THE ASSESSEE HAS RECEIVED LOAN FROM M/S. SHAKTI ORGANIZERS PVT. LTD. AND EVER EST ORGANIZERS PVT. LTD. AMOUNTING TO RS. 1,71,06,580/- AND RS. 2,06,11 9/- RESPECTIVELY 14. THE A.O WAS OF THE FIRM BELIEF THAT THE SAID TRANSA CTION IS HIT BY THE PROVISIONS OF SECTION 2(22)(E) OF THE ACT, AS O NE OF THE DIRECTORS OF THE ASSESSEE COMPANY WAS HAVING SUBSTANTIAL SHARE H OLDING IN THESE TWO COMPANIES. THE A.O. ACCORDINGLY TREATED THE AMO UNT OF RS. 12,78,538/- AS DEEMED DIVIDEND IN THE HANDS OF THE ASSESSEE. 15. AGGRIEVED BY THIS, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) AND REITERATED ITS CONTENTION THAT THE A.O. HAS SIMPLY EXTRAPOLATED CERTAIN FIGURES BASED ON THE STATEMENT S OF THREE PERSONS AND HAS NOT ONLY ESTIMATED THE TURNOVER OF THE ASSE SSEE BUT HAS ALSO ESTIMATED THE PROFIT. IT WAS STRONGLY CONTENDED TH AT WHATEVER IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 10 UNACCOUNTED ON-MONEY WAS RECEIVED BY THE ASSESSEE W AS DISCLOSED DURING THE COURSE OF THE SEARCH ITSELF IN THE FORM OF VOLUNTARY DISCLOSURE OF RS. 25 CRORES. THEREFORE, NO FURTHER ADDITION IS TO BE MADE. 16. INSOFAR AS THE ADDITIONS MADE U/S. 68 IS CONCERNED, IT WAS BROUGHT TO THE NOTICE OF THE LD. CIT(A) THAT THE A SSESSEE HAS RECEIVED THE BOOKING AMOUNT FROM SHRI PRABHUDAS S. VAGDHA BY ACCOUNT PAYEE CHEQUES AND WAS SUBSEQUENTLY RETURNED TO HIM BY ACC OUNT PAYEE CHEQUES AS THE BOOKING WAS CANCELLED. 17. INSOFAR AS THE ADDITION ON ACCOUNT OF DEEMED DIVIDE ND IS CONCERNED, IT WAS BROUGHT TO THE NOTICE OF THE LD. CIT(A) THAT THE ADVANCES WERE MADE DURING THE COURSE OF BUSINESS OF THE ASSESSEE, AND, THEREFORE, PROVISIONS OF SECTION 2(22)(E) DO N OT APPLY ON THE FACTS OF THE CASE. 18. AFTER CONSIDERING THE DETAILED SUBMISSIONS AND THE FACTS, THE LD. CIT(A) FOUND FORCE IN THE CONTENTION OF THE ASSESSE E THAT THE UNACCOUNTED ON-MONEY IS INCLUDED IN THE DISCLOSURE MADE DURING THE COURSE OF THE SEARCH AND, THEREFORE, NO SEPARATE AD DITION IS TO BE MADE AND FURTHER IF THE UNACCOUNTED ON-MONEY IN THE FORM OF A DISCLOSURE OF RS. 25 CRORES IS CONSIDERED THE PROFI T OF THE ASSESSEE IS REASONABLE IN THIS LINE OF THE BUSINESS. THE LD. CIT(A) ACCORDINGLY DELETED THE ADDITIONS MADE ON ACCOUNT OF UNACCOUNTE D RECEIPT AND ESTIMATION OF PROFIT AMOUNTING TO RS. 1,33,76,900/- AND RS. 94,65,000/- RESPECTIVELY. IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 11 19. INSOFAR AS THE ADDITION MADE U/S. 68 IS CONCERNED, THE LD. CIT(A) DID NOT GIVE THE BENEFIT OF ROTATION AND CONFIRMED THE ADDITION. 20. INSOFAR AS THE ADDITION ON ACCOUNT OF DEEMED DIVIDE ND IS CONCERNED, THE LD. CIT(A) WAS CONVINCED THAT THE TR ANSACTION BETWEEN THE TWO COMPANIES AND THE ASSESSEE COMPANY WAS MADE DURING THE ORDINARY COURSE OF BUSINESS AND IS, THEREFORE, NOT COVERED BY THE PROVISIONS OF SECTION 2(22)(E) OF THE ACT. 21. THE REVENUE IS IN APPEAL AGAINST THE DELETION OF TH E ADDITIONS MADE BY THE LD. CIT(A) AND THE ASSESSEE IS IN APPEA L FOR THE ADDITIONS CONFIRMED BY THE LD.CIT(A). 22. WE HAVE HEARD THE RIVAL CONTENTIONS AT LENGTH AND H AVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE HAV E ALSO GONE THROUGH THE RELEVANT DOCUMENTARY EVIDENCES BROUGHT ON RECORD IN THE FORM OF A PAPER BOOK. 23. THE UNDISPUTED FACT IS THAT THE ASSESSEE HAS MADE A DISCLOSURE OF RS. 25 CRORES VOLUNTARILY NOT ONLY THE ASSESSEE HAS HONORED ITS DISCLOSURE BUT HAS ALSO PAID THE TAXES ON IT. 24. THE ONLY SOURCE OF INCOME OF THE ASSESSEE COMPANY I S FROM THE CONSTRUCTION OF RESIDENTIAL FLATS. 25. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE H AS CONSTRUCTED AND SOLD FLATS IN ASHIRWAD PALACE. THE TOTAL NUMBERS OF FLATS CONSTRUCTED AND SOLD WERE 461. IT IS ALSO AN UNDISPUTED FACT THAT THE ASSESSEE WAS RECEIVING SOME ON-MONEY OVER AND A BOVE WHAT HAS IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 12 BEEN RECORDED IN ITS BOOKS OF ACCOUNTS UNDER THE HE AD SALES. IN OUR CONSIDERED OPINION, IN SUCH BUSINESSES, IT IS A COM MON PRACTICE OF RECEIVING SOME MONEY OVER AND ABOVE THE DOCUMENTED VALUE. EVEN, THE ASSESSEE THROUGH ITS DIRECTOR HAS ADMITTED SUCH PRACTICE. THIS ON- MONEY IS NOTHING BUT PART OF THE BUSINESS RECEIPTS OF THE ASSESSEE. SINCE, THE ASSESSEE WAS RECEIVING ON-MONEY FROM THE SALE OF ITS FLAT; THE DIRECTOR ACCEPTED THE UNACCOUNTED MONEY AND OFF ERED RS. 25 CRORES DURING THE COURSE OF THE SEARCH AND SEIZURE OPERATION ITSELF. IN ADDITION TO THIS, THE DIRECTOR HAS ALSO OFFERED RS. 11.25 CRORES IN HIS INDIVIDUAL CAPACITY WHICH MAKES THE TOTAL DISCLOSUR E AT RS. 36.25 CRORES. THE ENTIRE DISCLOSURE IS RELATED TO THE PRO JECT ASHIRWAD PALACE. 26. IN OUR CONSIDERED OPINION, THE ACTION OF THE A.O. I N ESTIMATING THE UNACCOUNTED TURNOVER AND MAKING ADDITION ON ACC OUNT OF PROFIT IS UNCALLED FOR, FOR THE SIMPLE REASON THAT THE DISCLO SURE MADE BY THE ASSESSEE HAS A DIRECT NEXUS WITH ITS BUSINESS ACTIV ITIES. WHATEVER, THE ASSESSEE HAS EARNED OUTSIDE ITS BOOKS OF ACCOUNTS I S PART OF ITS DISCLOSURE AND THE SAID DISCLOSURE BECOMES PART OF THE TOTAL SALE RECEIPTS OF THE ASSESSEE. THEREFORE, ANY ADDITION M ADE IN ADDITION TO THE DISCLOSURE WOULD PUT THE FINANCIALS OF THE ASSE SSEE IN AN ABSURD SITUATION BECAUSE THE A.O. HAS NOT BROUGHT ANY MATE RIAL EVIDENCE ON RECORD. EXCEPT FOR THE THREE INSTANCES CITED BY HIM RELATING TO SHRI SHRI ANOOP DEEPCHAND AGARWAL, SHRI ANIL MOHANLAL KHURANA AND SHRI MAGANBHAI B. ROHIT. AS MENTIONED ELSEWHERE, THERE W ERE 461 FLATS IN THE IMPUGNED PROJECT, THE A.O. HAS EXTRAPOLATED THE FIGURES DEPENDING UPON THE STATEMENTS OF ONLY THREE PERSONS MENTIONED HEREINABOVE. EXCEPT FOR THIS, THERE IS NO CORROBORATIVE EVIDENCE BROUGHT ON RECORD BY THE A.O. WHICH COULD CONCLUSIVELY PROVE THAT UNA CCOUNTED TURNOVER IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 13 OF THE ASSESSEE IS TO THE TUNE OF RS. 1,33,76,900/- AND THE UNACCOUNTED PROFIT IS AT RS. 94,65,000/-. 27. CONSIDERING THE FACTUAL MATRIX DISCUSSED HEREINABOV E AND CONSIDERING THE FACT THAT THE ASSESSEE HAS VOLUNTAR ILY DISCLOSED RS. 25 CRORES AS UNACCOUNTED ON-MONEY RECEIVED FROM THE PR OJECT ASHIRWAD PALACE. WE FIND THAT THE FIRST APPELLATE AUTHORITY HAS RIGHTLY CONSIDERED THE UNWARRANTED ADDITIONS MADE BY THE A. O. ON THIS ACCOUNT AS PART OF THE DISCLOSURE. THEREFORE, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A). G ROUND NOS. 1 & 2 ARE ACCORDINGLY DISMISSED. 28. GROUND NO. 3 RELATES TO DELETION OF THE ADDITION MA DE U/S. 2(22)(E) OF THE ACT. 29. A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT ONE OF THE SHAREHOLDERS OF THE ASSESSEE COMPANY SHRI GOPALKUMA R DOKANI IS HOLDING 12.03% SHARE IN M/S. SHAKTI ORGANIZERS PVT. LTD. AND 39.71% IN EVEREST ORGANIZERS PVT. LTD. THERE IS NO FINDING THAT THE ASSESSEE COMPANY WAS HAVING SUBSTANTIAL AND BENEFICIAL SHARE HOLDING IN THE IMPUGNED TWO COMPANIES. 30. IT IS A WELL SETTLED PROPOSITION OF LAW THAT DEEMED DIVIDEND CAN BE CONSIDERED ONLY IN THE HANDS OF THE SHAREHOLDERS AND SINCE THE ASSESSEE COMPANY IS NOT HAVING ANY SUBSTANTIAL/BENE FICIAL HOLDING IN THE IMPUGNED COMPANIES, WE DO NOT FIND ANY MERITS I N THE ADDITIONS MADE U/S. 2(22)(E) OF THE ACT. IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 14 31. FOR THIS PROPOSITION OF LAW, WE DERIVE SUPPORT FROM THE DECISION OF THE HONBLE HIGH COURT OF BOMBAY IN THE CASE OF UNIVERSAL MEDICARE PVT. LTD. 324 ITR 263 WHEREIN THE HONBLE HIGH COUR T HAS HELD AS UNDER:- IN ORDER THAT THE FIRST PART OF CLAUSE (E) OF SECT ION 2(22) OF THE INCOME-TAX ACT, 1961, IS ATTRACTED, THE PAYMENT BY A COMPANY HAS TO BE BY WAY OF AN ADVANCE OR LOAN. THE ADVANCE OR LOAN HAS TO BE MADE, AS THE CA SE MAY BE, EITHER TO A SHAREHOLDER, BEING A BENEFICIAL OWNER HOLDING NOT L ESS THAN TEN PER CENT, OF THE VOTING POWER OR TO ANY CONCERN IN WHICH SUCH A SHAR EHOLDER IS A MEMBER OR A PARTNER AND IN WHICH HE HAS A SUBSTANTIAL INTEREST. SECTION 2(22)(E) DEFINES THE AMBIT OF THE EXPRESSION 'DIVIDEND'. ALL PAYMENTS BY WAY OF DIVIDEND HAVE TO BE TAXED IN THE HANDS OF THE RECIPIENT OF THE DIVIDEND NAMELY THE SHAREHOLDER. CONSEQUENTLY, THE EFFECT OF CLAUSE (E) OF SECTION 2 (22) IS TO BROADEN THE AMBIT OF THE EXPRESSION DIVIDEND BY INCLUDING CERTAIN PAYM ENTS WHICH THE COMPANY HAS MADE BY WAY OF A LOAN OR ADVANCE OR PAYMENTS MADE O N BEHALF OF OR FOR THE INDIVIDUAL BENEFIT OF A SHAREHOLDER. THE DEFINITION DOES NOT ALTER THE LEGAL POSITION THAT DIVIDEND HAS TO BE TAXED IN THE HANDS OF THE S HAREHOLDER. 32. OUR VIEW IS FURTHER FORTIFIED FROM THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL MUMBAI IN THE CASE OF BHAUMIK COLOUR PVT. LTD. 313 ITR 146 (AT) WHEREIN THE SPECIAL BENCH HELD AS UNDER:- HELD, DISMISSING THE APPEAL (I) THAT THE THREE TRU STEES OF THE TRUST HELD SHARES IN UPPL AND THE ASSESSEE-COMPANY WAS ONLY AS A LEGAL A ND REGISTERED OWNER FOR AND ON BEHALF OF FIVE BENEFICIARIES OF THE TRUST WH O WERE DIFFERENT INDIVIDUALS. THE THREE TRUSTEES WERE, THEREFORE, NOT BENEFICIAL OWNE RS OF THE SHARES. THEREFORE, THE PROVISIONS OF SECTION 2(22)(E) WOULD NOT BE APPLICA BLE AT ALL TO THE CASE OF THE ASSESSEE-COMPANY. (II) THAT DEEMED DIVIDEND COULD BE ASSESSED ONLY IN THE HANDS OF THE PERSON, WHO IS A SHAREHOLDER OF THE LENDER COMPANY AND NOT IN T HE HANDS OF A PERSON OTHER THAN A SHAREHOLDER, I.E., THE CONCERN. IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 15 33. RESPECTFULLY FOLLOWING THE AFOREMENTIONED DECISIONS , WE DECLINE TO INTERFERE. GROUND NO. 3 IS ACCORDINGLY DISMISSED . 34. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS D ISMISSED. IT(SS)A NO. 483/AHD/2010 ASESSEES APPEAL 35. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO THE A DDITION OF RS. 25 LACS MADE U/S. 68 OF THE ACT. 36. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, TH E A.O. FOUND A SUM OF RS. 25 LACS CREDITED IN THE BOOKS IN THE N AME OF SHRI PRABHUDAS S. VAGDHA AS BOOKING AMOUNT TOWARDS FLAT NO. D-1106 IN ASHIRWAD PALACE. ASSESSEE WAS ASKED TO EXPLAIN TH E SAID CREDIT ENTRY. ASSESSEE FILED A DETAILED REPLY EXPLAINING THAT SHR I PRABHUDAS S. VAGDHA HAS BOOKED A FLAT NO. D-1106 IN ASHIRWAD PA LACE AND ON SUCH BOOKING HAD PAID RS. 25 LACS BY ACCOUNT PAYEE CHEQU ES. IT WAS FURTHER EXPLAINED THAT THE SAID BOOKING OF FLAT WAS CANCELLED AND THE AMOUNT WAS REPAID TO SHRLI PRABHUDAS S. VAGDHA. 37. THE REPLY FILED BY THE ASSESSEE DID NOT FIND ANY FA VOUR WITH THE A.O. WHO MADE ENQUIRIES AND FOUND THAT THE CHEQUES DEPOSITED BY SHRI PRABHUDAS S. VAGDHA WERE ACTUALLY ISSUED BY ON E SHRI KAMLESH SHARMA. THE A.O. FURTHER VERIFIED THAT THE AMOUNT R EFUNDED BY THE ASSESSEE TO SHRI PRABHUDAS S. VAGDHA WERE ACTUALL Y DEPOSITED IN THE PROPRIETARY CONCERN OF MR. PRABHUDAS S. VAGDHA NAME LY PRITHVI CORPORATION WHICH TRANSFERRED THE SAME AMOUNT TO GA NESH TRADERS. 38. BASED ON SUCH ENQUIRIES, THE A.O. WAS OF THE FIRM B ELIEF THAT THE ASSESSEE HAS INTRODUCED HIS OWN UNACCOUNTED MONEY I N THE GARB OF IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 16 FLAT BOOKING. THE A.O. ACCORDINGLY TREATED THE SAME AS UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT. 39. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) B UT WITHOUT ANY SUCCESS. 40. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE VEHEMEN TLY STATED THAT THE ASSESSEE HAS SUCCESSFULLY DISCHARGED THE I NITIAL BURDEN CAST UPON IT BY THE PROVISIONS OF SECTION 68 OF THE ACT AND, THEREFORE, NO ADDITION IS CALLED FOR. 41. PER CONTRA, THE LD. D.R. STRONGLY SUPPORTED THE FIN DINGS OF THE REVENUE AUTHORITIES. 42. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE FAC TS IN ISSUES BEFORE US. THE UNDISPUTED FACT IS THAT THE ASSESSEE HAS RECEIVED RS. 25 LACS FROM SHRI PRABHUDAS S. VAGDHA BY ACCOUNT PAYEE CHEQUES AND WHICH FACT HAS ALSO BEEN ACCEPTED BY THE A.O. IF, T HE BOOKING AMOUNT OF SHRI PRABHUDAS S. VAGDHA WAS MADE BY CHEQUES ISS UED BY SHRI KAMLESH SHARMA, WE FAIL TO UNDERSTAND HOW THIS CAN BE HELD AGAINST THE ASSESSEE. THE ONUS CAST UPON THE ASSESSEE IS TO PROVE THAT THE BOOKING MONEY HAS COME FROM SHRI PRABHUDAS S. VAGDH A. THE ASSESSEE CANNOT BE ASKED TO PROVE THE SOURCE OF THE SOURCE. 43. MOREOVER, THE FACT THAT THE BOOKING AMOUNT WAS REFU NDED HAS ALSO BEEN ACCEPTED BY THE A.O. AND THE A.O. HAS ALS O ACCEPTED THAT THE REFUNDED AMOUNT WAS DEPOSITED IN THE PROPRIETAR Y CONCERN OF SHRI PRABHUDAS S. VAGDHA. IN OUR CONSIDERED OPINION AND FINDING THAT THE A.O. HAS HIMSELF ACCEPTED THE RECEIPT OF BOOKING AM OUNT BY THE IT(SS)A NOS. 540 & 483/AHD/2010 . A.Y. 2008-0 9 17 ASSESSEE WAS MADE BY ACCOUNT PAYEE CHEQUES. THE ASS ESSEE HAS SUCCESSFULLY DISCHARGED THE INITIAL ONUS CAST UPON IT BY PROVISIONS OF SECTION 68 OF THE ACT. WE, THEREFORE, DO NOT FIND A NY MERITS IN THE IMPUGNED ADDITIONS FINDING OF THE LD. CIT(A) ARE AC CORDINGLY SET ASIDE AND THE A.O. IS DIRECTED TO DELETE THE ADDITION OF RS. 25 LACS. 44. FOR THE SAKE OF COMPLETENESS OF THE ADJUDICATION AS PER OUR DETAILED DISCUSSION OF THE UNACCOUNTED MONEY DISCLO SED BY THE ASSESSEE BY WAY OF VOLUNTARY DISCLOSURE DURING THE COURSE OF THE SEARCH AND SEIZURE OPERATION AMOUNTING TO RS. 25 CR ORES. WE DO NOT FIND ANY REASON FOR MAKING THE IMPUGNED ADDITION OF RS. 25 LACS. 45. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 09- 08 - 2 016. SD/- SD/- (S.K. YADAV) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD