Om Sai Infrapromoters Pvt. Ltd. Vs DCIT (Delhi High Court)
Delhi High Court held that addition towards unexplained receipts based on seized dairies justifiable as diaries were found to record receipts of bookings of flats. Accordingly, appeal dismissed.
Facts- At the material time Search and Seizure operations were conducted under Section 132 of the Act in respect of the aforesaid two entities including at the premises of Kaushalya Residency Girls Hostel. During the course of the search, certain diaries were found and seized. The said diaries contained certain entries which AO found reflected cash received in respect of the real estate projects that were being co-developed by the two Assessees. This led the AO to reassess the income of the Assessees for the relevant assessment year.
From the said material available with the AO, the AO computed the amounts, which according to him, were unexplained receipts. On the said basis, the AO made an addition of ₹6,44,00,000/- in the hands of the said Assessee, albeit on a protective basis. According to the AO, the funds invested in the Assessees belonged to Shri Ravinder Singh Tongar, and was therefore, assessable in his hands as unexplained receipts.
CIT(A) partly allowed the appeal. ITAT found no fault with the additions made on account of unexplained receipts that were recorded in the seized diaries during the Search and Seizure operations carried on u/s. 132 of the Act. Being aggrieved, the present appeal is filed by the assessee.
