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Shree Sarvandand Sadhuram Sonvani ITA No. 809 to 819/RJT/2024, ITA(ss) no. 23&24/RJT/2024 ITA No. 791 to 796/RJT/2024

24. In Sr. No. 11 of the notice, it is alleged that digital data seized from the possession of Shri Girish Vanjani contains two MIRACLE data files named as "Shrushti Enterprise" and "Nav Shrushti Enterprise" contain common constant cash book for the period from 01-10-2012 to 30-06-2016 and transactions recorded in such cash book are not identifiable and attributable to any specific entity or person. In absence of any clarity on the nature of transactions recorded in these data, it is proposed to make addition of peak cash balance of Rs. 8,23,46,050/- in the relevant year. In connection with the above, it was submitted by the assessee that above-stated MIRACLE files and entries recorded therein are not pertaining to assessee or his family members/associated concerns. Further, assessee has never directed Shri Girish Vanjani to make data entries in the above- stated Miracle Files. Therefore, cognizance taken on the basis of above-stated two data files is completely unjustified. Further, it is also seen that the period of cash book in the above-stated seized data is from 01/10/2002 to 30/06/2006, which is much prior to the search relevant assessment years. It is understood that the date / period in the seized data is interpreted as 10 years backdated without at logic/reason. There is no evidence that the entries in such seized data are recorded backdated and hence, addition proposed on the basis of said data in the assessment year under consideration was objected. Furthermore, figures / amount in the seized data is allegedly decoded by adding to digits after the decimal, which is also incorrect and without any reason. These seized data are altogether different from other three Miracle Files and it is not correct to apply same reasoning/logic in these two data files. Therefore, decoding of figures made is also not correct and addition proposed on that basis was strongly objected. Without prejudice to the above and without admitting the content and authenticity of seized data, it was requested to provide benefit of telescoping in respect of alleged unaccounted income from various real estate projects proposed to be added in assessee's hands against addition proposed on account of peak cash balance as per the aforesaid seized data. Since, the entries of cash inflow / outflow in the above-stated two Shree Sarvandand Sadhuram Sonvani ITA No. 809 to 819/RJT/2024, ITA(ss) no. 23&24/RJT/2024 ITA No. 791 to 796/RJT/2024 data filed i.e., "Shrushti Enterprise" and "Nav Shrushti Enterprise" are not identifiable or attributable to any specific person / entity, it was requested to treat the same as rotation of own funds i.e., funds available with various family members and associated concerns and once, additional income has already been estimated and taxed in all such cases, further making addition in respect of peak balance will tantamount to double addition.

66. On appeal, the ld.CIT(A) confirmed the action of the assessing officer. The ld.CIT(A) noticed that the digital data contains the details of land purchased and sold by the assessee at village Munjka. The purchase and sale of land at Munjka has been recorded as "Munjka 37" in such digital data which was also corroborated by the AO from the ledger maintained by the accountant named as "Munjka 37" wherein the bank entries recorded in the Miracle ledger was Shree Sarvandand Sadhuram Sonvani ITA No. 809 to 819/RJT/2024, ITA(ss) no. 23&24/RJT/2024 ITA No. 791 to 796/RJT/2024 matched with the document price of land and books of account. The entries has been backdated by 10 years and the amount has been divided by 100, so as to mislead the reader of the data. Therefore, ld.CIT(A) confirmed the action of the assessing officer. Aggrieved by the order of the learned CIT(A). The assessee is in further appeal before us.