9911796707
TMI Blog2016 (7) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute raised by the assessee is with respect to an addition of Rs. 83,00,000/- sustained by the CIT(A) on account of undisclosed/unexplained cash u/s 69A of the Act. 3. In brief, the relevant facts are that a search and seizure action u/s 132(1) of the Act was carried out on 15.3.2009 in the case of the assessee and its associates. The relevant facts for our purpose is that in the course of search cash to the extent of Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r it amounting to Rs. 9,01,200 were recorded in manual cash book maintained by the Company. The net proceeds of Rs. 83,00,000/- were seized during the search proceedings initiated by Income Tax authorities and deposited in the Government Treasury. This has been accounted as "Advances Recoverable in cash or in kind or for value to be received" in schedule "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 Rs. 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 produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t justify an inference that a further addition of Rs. 83,00,000/- is required to be made. The learned representative pointed out that in fact in the course of search when cash of Rs. 83,00,000/- was admitted as unexplained, no particular source was admitted and that the entries in question have been made only for the 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 clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained 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 Rs. 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 Rs. 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 Rs. 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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