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TMI Blog2016 (7) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 83,00,000/-, there is no further requirement of the assessee to declare income corresponding to the unexplained cash found during the search. If the stand of the Revenue was to be approved, then, it would be imperative to establish that assessee had earned ₹ 83,00,000/- over and above the unexplained cash found during the course of search. For that matter, there is no material or evidence on record which could show that other than the cash seized of ₹ 83,00,000/-, there was any other unexplained income to that extent. Though the manner in which assessee-company has offered the unexplained cash of ₹ 83,00,000/- to tax in the return of income is not in the best of the terms, yet it cannot be negated by merely cherry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of search cash to the extent of ₹ 83,00,000/- was found and seized, which was admitted by the assessee to be unexplained. In the course of search assessee admitted that the aforesaid sum was unexplained additional income in excess of the income shown in the regular books of account and accordingly the same was to be offered for taxation. In the return of income filed subsequent to the search on 29.9.2009 for assessment year under consideration, assessee claimed that such additional income of ₹ 83,00,000/- was offered for taxation. The Assessing Officer, however, concluded that the unexplained cash of ₹ 83,00,000/- found at the time of search has not been offered by the assessee as its undisclosed income and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edule F of the Balance Sheet as on 31st March 2009. 5. The aforesaid explanation of the assessee has not been accepted by the Income-tax authorities on the ground that the said entries do not reflect unexplained/unaccounted cash of ₹ 83,00,000/- found during the course of search. One of the points raised by the assessee was that the aforesaid entries on account of sale of agricultural produce was not recorded in the regular books of account but were recorded in the manual cash book maintained and it is only on the date of search, i.e. on 5.3.2009, that assessee-company made formal entries in the regular books of account declaring it as agricultural income in order to cover up the unexplained cash of ₹ 83,00,000/- found du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of bringing on record such unexplained cash. It has been contended that though the entries have been made as sale of agricultural produce but no exemption has been claimed as agricultural income. 7. We have carefully considered the rival submissions. After having perused the orders of the authorities below as also the relevant portion of the statement deposed by Director of the assessee at the time of search, it clearly emerges that the assessee admitted that the cash of ₹ 83,00,000/- was unexplained and that additional income to the aforesaid extent over and above the income shown in the regular books of account would be declared. The difference between the assessee and the Revenue primarily arises as to whether the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explained cash of ₹ 83,00,000/- to tax in the return of income is not in the best of the terms, yet it cannot be negated by merely cherry-picking the facts. In fact, the notes of account has to be understood in toto and, accordingly there cannot be any doubt that the sum of ₹ 83,00,000/- declared in the return of income corresponded to the amount of cash seized during the search operation. Therefore, in our view, the lower authorities fell in error in making a further addition of ₹ 83,00,000/- by invoking Sec. 69A of the Act on account of unexplained/undisclosed cash found during the search. 8. In the result, we set-aside the order of CIT(A) and direct the Assessing Officer to delete the impugned addition. 9. Resulta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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