Sec.132 and Chapter 14 B of Income Tax Act - Basing on the receipts one is payment of Rs. 10 lakhs and another is refund of Rs.10 lakhs resulted in failure of a deal - can not be added as unexplained income with out recovering any cash ready in hand -2015 A.P.(2014)MSLLAWREPORTS
The premises of the appellant was searched on 19.01.2001 by the officials of the Income Tax Department in exercise of power under Section 132 of the Act. A receipt evidencing payment of a sum of Rs.10,00,000/- to one Mr. Prabhakar Reddy is said to have been discovered. Another receipt evidencing repayment of that very amount was also discovered. A statement under sub-Section (4) of Section 132 of the Act is also recorded on the day of search. When a question was put to the appellant as to whether he has made any payment to one Mr.Prabhu, he gave answer in a negative. Thereafter, a further statement was recorded on 27.03.2001. A question was put to the appellant as to whether he paid a sum of Rs.10,00,000/- to Mr. Prabhakar Reddy. The appellant accepted that he paid that amount to Mr.Prabhakar Reddy on 25.11.2000 for purchasing of a plot. He further explained that the deal did not fructify, and ...