Addition Based on mere Loose Papers & Third-Party Statement deleted

A search &  survey action u/s 132 was carried out in the case of M/s Evergreen Enterprises, in which Shri Nilesh Bharani ( NB) was a partner. Based on certain documentary evidences found during the search &  the statement of Shri N B recorded u/s 132(4), Revenue alleged that the firm was engaged in the business of borrowing &  lending unaccounted cash. From a ledger account maintained on a loose paper, the name Laxmichand Dedhia allegedly appeared in a coded entry “B/08/PL” with an amount shown as 500, interpreted as Rs 5,00,000/-. AO concluded that Assessee had advanced a cash loan of Rs 5,00,000/- in FY 2011-12. The return for AY 2012-13 was originally filed declaring Rs 2,28,089/-. The case was reopened u/s 147 &  AO made additions of Rs 5,00,000/- as unexplained money u/s 69A, Rs 75,000/- as interest @ 15% for full year on the said loan, &  Rs 3,000/- as brokerage u/s 69C. These were based primarily on the statements of Shri N B &  Shri Ashwin Rathod, accountant of Evergreen Enterprises &  a seized diary allegedly containing Assessee’s contact details. Assessee denied having advanced any cash loan, contended that the address &  mobile number in the seized diary did not pertain to him &  pointed out that Shri N B had retracted his statement. It was argued that loose sheets &  third-party statements without corroboration cannot be treated as conclusive evidence.