2017 (8) TMI 940 - AT - Income Tax

Quantum of assessment passed u/s 153A - unexplained cash found from the residential premises of the assessee - Held that - We find that the Tribunal in assessee s case has set aside this matter to the file of the Learned CIT(Appeals) to the extent of sustaining 50% on this issue and restore the issue of 50% of sustaining the addition shall not be subject matter of reconsideration because there is no departmental appeal preferred in this regard. Since the same has been set aside to the file of the Ld. CIT (Appeals), we are therefore, of the opinion that the balance amount of cash of 50% which has been deleted by the Ld. CIT (Appeals) on ad-hoc manner also deserves to be remanded back to on same reasoning and should be decided afresh after considering the assessee s explanation as well as the material on record. Thus, following the Tribunal order in assessee s appeal, ground no. 1 is remanded back to the file of the Ld. CIT (Appeals) which decide afresh. Addition on protective basis - CIT-A has deleted the addition made on protective basis on the ground that the same has been confirmed by him in his appellate order in the case of Smt. Kiran Jain and Shri Vikram Jain - Held that - The matter should be restored back to the file of the Ld. CIT (Appeals) who shall decide the same after taking into consideration the Tribunal s order in assessee s case and decide accordingly. If the addition has been deleted on merits, then ostensibly, no addition can be made here in this case of the assessee. Ground no. 2 is also set aside to the file of Ld. CIT

Summary

Issues:
1. Addition of unexplained cash - &8377; 15,22,850/-
2. Deletion of addition made on protective basis - &8377; 2.25 Crore

Analysis:
1. Addition of Unexplained Cash:
- The appeal was filed by the revenue against the order passed by the Ld. CIT (Appeals) regarding the addition of &8377; 15,22,850/- on account of unexplained cash found during a search and seizure action. The Assessing Officer added the entire amount as the source of the cash was not properly explained by the assessee. However, the Ld. CIT (Appeals) reduced the addition by 50% on an estimate basis, stating that part of the cash could be explained. The Tribunal set aside the matter to the file of the Ld. CIT (Appeals) for reconsideration based on the evidence and material on record. The Tribunal observed that the Ld. CIT (A) had accepted the explanation provided by the assessee regarding the cash being kept for security reasons and for household expenses. The Tribunal directed a fresh examination of the issue by the Ld. CIT (Appeals) based on the assessee's explanation and the material available.

2. Deletion of Addition on Protective Basis:
- The Assessing Officer had made an addition of &8377; 2.25 crores on a protective basis, out of which &8377; 1.25 crores were added substantively in the hands of the assessee. The Ld. CIT (Appeals) upheld the addition of &8377; 1.25 crores and deleted the addition made on a protective basis, citing confirmation in the case of other individuals. The Tribunal allowed the appeal of the assessee on this ground, deleting the addition of &8377; 1.25 crores. The Tribunal directed the issue to be reconsidered by the Ld. CIT (Appeals) in light of their decision in the assessee's case and provided the assessee with an opportunity to represent their case effectively.

In conclusion, the Tribunal allowed the appeal of the Revenue for statistical purposes, directing a fresh examination of both the issues by the Ld. CIT (Appeals) based on the evidence and material available, following the Tribunal's orders in the assessee's case.