DCIT Vs Gopal Krishnanatsa Katigar (ITAT Bangalore)
Assessee is an individual & a partner in two firms. A search u/s 132 was carried out in the case of the Mishra Group. The residential premises of assessee were also covered under the search proceedings. Documents were seized from the residence of Mr. Gridhar Laddha (Mr GL), the manager & key managerial personnel of the Mishra Group, indicating that loans were received from various parties by the Mishra Group, including the assessee, through both banking channels & cash.
When the seized materials were confronted to the Mr. GL, he admitted that loans through banking channels as well as through cash were availed from assessee throughout the period.
Materials found on the premises of Mr. GL were presented to assessee & his wife during the recording of his statement u/s132(4). Assessee claimed ignorance regarding the contents of the seized materials. He denied making any cash loans & stated that all his transactions with the Mishra Group were conducted through proper banking channels.
AO, during the 153C assessment, found that documents from Mr. GL were well-maintained, containing the list of parties, including assessee, who received loans via banking channels & cash. Assessee did not dispute the authenticity but claimed ignorance. Shri Sanjay Ganesh Mishra, a key member of the Mishra Group, confirmed that they took loans from assessee, mainly through banks, but sometimes in cash, & these were unrecorded. Later the statement was retracted, asserting that it was signed under pressure without verification.
