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TMI Blog2017 (3) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- is deleted and balance addition of ₹ 75,000/- is confirmed. Thus, the ground No. 1 and 2 of appeal is partly allowed in favour of the assessee. - I.T.A. No.(S.S.)01/Ind/2016 - - - Dated:- 3-3-2017 - SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER For The Appellant : Shri Girish Agarwal, CA For The Respondent : Shri Lal Chand, CIT(DR) ORDER PER O.P.MEENA, ACCOUNTANT MEMBER This appeal by the assessee is, directed against the order of the learned Commissioner of Income Tax (Appeals)-31, Camp- Bhopal [in short CIT (A)] dated 23.11.2015 for the Assessment Year 2008-09 on following grounds: (1) That on the facts and in the circumstances of the case and in law, the learned CIT (A) e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to explain the source of cash of ₹ 2 seized from his residence during search. It was explained that the cash was mainly available out of agricultural income of Smt. Bela Agarwal (wife of the assessee). However, this explanation was not found acceptable in absence of any documentary evidence. 1.2. The assessee carried the matter in appeal before the CIT (A). It was explained that during the course of search and seizure operation at the residential premises of the assessee, agricultural income and expenditure statement was found in which agricultural income of ₹ 3,34,576/- was reflected (copy was attached) is pertaining to M/s. Agarwal Nursery a proprietary concern of Smt. Bela Agrawal. It was out of above mentioned income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 3,35,000) was offered in the return of income duly supported by seized papers and it was accepted by the AO in the assessment of Smt. Bela Agarwal. All these records were before the AO, but he failed to consider the same in proper perspective. Therefore, it was contended that said cash found during search is out of agricultural income of Smt. Bela Agarwal (wife of assessee). During the course of search, the assessee was out station, and only statement of Smt. Bela Agarwal, was recorded under section 132(4) which is placed at PB 31-37, wherein, in answer to question no. 7, the officer noted the existence of agriculture land in the preliminary statement of Smt. Bela Agarwal, and, sought further clarification (PB-34) and in question no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/- and expenses comes to ₹ 3,11,825/-, hence, the availability of cash comes to ₹ 1,28,191/- as against the cash ₹ 2,11,108/- found during the course of search. Further, in reply to Question no. 8 of her statement, she could not explain the source of cash. In view of these facts, the Ld. CIT (DR) supported the orders of lower authorities. 1.5. We have heard the rival submissions of both the parties and have perused the material available on record. We find that during the course of search, loose paper in the form of a diary were found and seized and inventoried as LPS-1. This diary contained the entries of receipts/income of agricultural produce and agricultural expenses up to the month of September 2007. We find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain entries remained to be recorded after September 2007. However, this cannot be relied as no evidence of un-recorded entries was found during search. In view of this matter, were are of the considered view that cash of ₹ 1,25,000/- can be treated as explained out of seized cash of ₹ 2 lacs. Accordingly, the addition to that extent of ₹ 1,25,000/- is deleted and balance addition of ₹ 75,000/- is confirmed. Thus, the ground No. 1 and 2 of appeal is partly allowed in favour of the assessee. 2. So far Ground No. 3 relating to charging of interest under section 234A, 234B 234C and 234D is concerned, we are of the view that charging of interest is mandatory as held in the case of Anjum M. H. Ghaswala 252 ITR 1 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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