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"Ground. No. 3 Addition for unexplained expenditure The Ld. AO has made the addition of Rs. 5,80,00,000/- on the basis of some MIS of Excel File CFO contained in the hard disc allegedly impounded from the office of VNS. This figure appears in the statement on page 34 in the name of Sanjay Pandey and in the summary it appears in the name of VNS at page 36.
The assessee contended before the Ld. AO (page 19 of the assessment order) that there is no file by the name CFO MIS in the computer disc seized from the office of the assessee. It was further requested to provide the information w.r.t. the punchnama/seizure memo which mentions the related hard disc/ other storage material from where this file has allegedly been extracted from. It was further requested to kindly let us know the source and the manner in which the aforesaid file has been extracted to enable to submit new response to the same. The same submission was reiterated in further two letters which are reproduced in the assessment order at page 19 and 20. Without any Vidya Niketan Samiti IT(SS)A No.185 & 186/Ind/2020 and Co No. 26& 31/Ind/2021 Assessment years 2008-09& 2009-10 details, the Ld. AO made the addition on the assumption that the payment is made in three year. The CIT(A) has deleted these additions from page 63 to 74 of the order and held that the impugned excel sheet or rather say it as a dumb document should be speaking one, having direct nexus with the assessee. Secondly, the excel sheet are undated, unsealed and unsigned. Thirdly, no independent incriminating material was found suggesting alleged expenditure by the assessee. Relying on number of cases which are quoted from page 65 to 72, the Ld. CIT(A) deleted the addition.
Arguments It is humbly submitted that the said excel sheet has not been found in the hard disc of the assessee as alleged by the Ld. AO. In spite of our repeated request, the source of this excel sheet has not been provided by the Ld. AO. As seen from the excel sheet the name of Sanjay Pandey is mentioned (pg. 34 of assessment order). As mentioned in the assessment order Shri Sanjay pandey was no more a member of the Society from 28/07/2009 (page 6 of the assessment order). Thus it is submitted that under no circumstances the assessee could be connected with the said transaction. This is purely a dumb document without mentioning the date. The allegation is that it has been recovered from the premises of the assessee is totally baseless and without any evidence. No corroborative paper has been found to show that any payment is received or paid. The excel sheet does not prove that the assessee has spend any such money. At page 36 VNS name has been mentioned on the outflow side. Thus it is submitted that the addition has been made merely on surmises without any evidence and as such the Ld. CIT(A) was right in deleting the addition."

42. We have considered rival submissions of both sides and also perused the material held on record. Firstly, we observe that the Ld. AR of assesseestronglyclaims that the impugned excel-sheet was not found from the hard disc of assessee as alleged by Ld. AO. He further claims that despite repeated request of assessee, the source of excel-sheet had not been provided. The Ld. AR also drew our attention to Page No. 19 of the assessment-order wherein the assessee, in reply filed to Ld. AO during assessment-proceeding, raised the same objection. We extract below the assessee's reply:

The assessee has only one office at VNS Campus, Vidya Vihar, Neelbud, Tehsil Huzur, Bhopal. All the premises as referred to in the said questionnaire do not belong to the assessee and the assessee has not carried on any business operations nor does it keep any records at any place other than the declared premises.
You may please refer to the 'Panchnama drawn under section 1334. It may be mentioned that there is no panchnama drawn under section 132 of the Income Tax Act, 1961 in the case of the assessee. As can be seen from the 'panchnama made u/s 133A only two hard discs have been seized from the office the assessee -one relating to the Accounts section and the other relating to the fees counter. There is no mention of any file by the name of CFO MIS etc as claimed in the referred questionnaire in the said computer discs. As such it is most humbly requested to please provide the assessee the information w.r.t the panchnamal seizure memo which mentions the relatable hard disk other storage material from where this file has allegedly been extracted from You are therefore, requested to kindly let us know the source and the manner in which the aforesaid file has been extracted to enable us to submit due response to the same. Once you let us know the seized/ impounded source from which the aforesaid documents were extracted and provide us the copy of the Panchnama in which the aforesaid extraction from the seized/ impounded evidence was recorded/ evidenced, we will ascertain if this document was prepared by any person looking after the affairs of the society and on what basis the document, if true, was prepared and will file appropriate reply.