9911796707
TMI Blog2016 (1) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... his provision can be invoked only when unaccounted cash, bullion, jewellery or any other valuable article or thing is found during search or otherwise. We find that it is not the case of A.O. that the assessee has not offered any explanation. It is also not the case of A.O. that explanation offered by him with "regard to source and acquisition of money is not satisfactory. The nature of receipt is business income being advance against sales and source of receipt is the respective customers. The A.O. is very much satisfied with the nature and source of amount. Infact the nature and source of the unaccounted receipts is self-established from the seized material itself. Thus, the nature and source stands duly explained. Therefore, there is no applicability of provision of section 69A of the Act. We are of the view that the Income is different from "receipt". Even when the receipt is unaccounted, it is only the income which is taxable and income has to be computed in accordance with the provision of Act and in accordance with the method of accounting regularly followed by assessee. The assessee has been following the percentage of completion method regularly since inception. The A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case was assessed at an income of ₹ 14,00,000/- after considering the amount admitted as undisclosed receipts pertaining to this previous year as income to be charged to tax in this assessment year itself vide order dated 31.3.2013 passed u/s. 153A r.w.s. 143(3) of the I.T. Act, 1961. 3. Against the assessment order dated 31.3.2013, assessee appealed before the Ld. CIT(A), who vide impugned order dated 24.12.2013 has dismissed the appeal of the Assessee. 4. Aggrieved, assessee is in appeal before the Tribunal. 5. Ld. Counsel for the assessee has filed a Paper Book containing pages 1 to 13 which contains the Paper Book filed before the Ld. CIT(A) and Also another Paper Book having pages 1 to 69 consisting of various judgments of the Hon ble High Courts and ITAT favouring the assessee s case. 6. On the contrary, Ld. DR relied upon the orders of the authorities below and stated that Ld. CIT(A) has passed a well reasoned order, which does not need any interference, hence the same may be upheld. 7. We have heard both the parties and perused the records, especially the orders of the authorities below and the submissions made by the Ld. Counsel and the case laws rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t satisfactory in the opinion of the Assessing Officer, then the money and the value of the bullion, jewellery Or other valuable article may be deemed to be the income of the assessee for such financial year. For this section to come into operation, the assessee must be found to be the owner of any money, bullion, jewellery or other valuable article. The terms money, bullion, jewellery or other valuable article signify concrete things and do not mean amounts recorded in books of account or documents. Therefore, in such cases where unaccounted entries are found recorded in the books or documents seized, section 69A cannot be invoked. This provision can be invoked only when unaccounted cash, bullion, jewellery or any other valuable article or thing is found during search or otherwise. Therefore, it was not appropriate for the revenue to invoke section 69A to charge the amount to tax. 4.5 Accordingly, during appeal, the appellant was addressed a letter on 28.11.2013 asking the appellant as to why the unaccounted money received should not be taxed as income from other sources u/s 56 as the business of the appellant did not constitute receiving unaccounted sums of money, which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer, satisfactory, the money and the value of the bull ion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year. 7.2 From the above, we find that Section 69A is applicable where the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, and the assessee offers no explanation about the nature and source of acquisition, or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer, then the money and the value of the bullion, jewellery Or other valuable article may be deemed to be the income of the assessee for such financial year. For this section to come into operation, the assessee must be found to be the owner of any money, bullion, jewellery or other valuable article. The terms money, bullion, jewellery or other valuable article signify concrete things and do not mean amounts recorded in books of account or documents. Therefore, in such cases where unaccounted entries are found recorded in the books or documents seized, section 69A cannot be invoked. This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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