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TMI Blog2018 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... 85,42,100/- on account of disallowance of expenses u/s.40A(3) and unexplained expenditure. 2. Under the facts and circumstances of the case the Ld.CIT(A) has erred in ruling-out the seized materials marked VRS-16, VRS-23, VRS-25, VRS-26 & VRS-32-35 which clearly indicate that expenses of Rs. 73,70,000/- have been incurred in cash. From the seized documents, it is clearly seen that the violation of Section 40A(3) of the I.T.Act, 1961 has occurred. 3. Under the facts and circumstances of case, the Ld. CIT(A) has erred in ruling-out the seized materials marked BKBT/2 containing loose sheets/cash panna/vouchers etc., which clearly indicate that amount in the left hand side of these pages contain details of money received and the right han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We heard the rival submissions and perused the material on record. Prima facie, the sole matrix of the disputed issue is with respect to the deleting the additions on account of disallowance of expenses u/s.40A(3) and unexplained expenditure. We find that the CIT(A) while dealing with the disputed issue of disallowance u/s.40A(3), observed that the disallowance by the AO u/s.40A(3) of the Act pertaining to the same expenses already disallowed by the tax auditor will lead to double taxation. The observations of the CIT(A) on this issue are as under :- "After considering the AO's finding and submission of the appellant, I find that the appellant has submitted detailed list of disallowance of expenses amounting to Rs. 74,39,986/- as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of search and seizure action, the seized document included cash panna of the appellant company at Kolkata office wherein the left hand side indicates the source of fund and the right hand side indicates various expenses. The AO picked up cash amounts mentioned under names of different persons on various dates on the right hand side of cash panna and treated the same as expenses incurred in violation of sec. 40A(3) or expenses not allowable u/s 37 of the Act or unexplained expenses u/s 69C of the Act. On the other hand, the appellant has shown from his regular cash book that all the transactions noted on the seized cash panna was nothing but part of regular cash book maintained at- Kolkata office. The appellant has furnished the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranch office to another branch, the AO concluded the same as unaccounted / unexplained expenditure. As the appellant has proved from the evidences of its regular cash book and bank statement, that all the transactions as per seized cash panna are duly recorded in the regular, books of accounts, the addition made by the AO on this issue amounting to Rs. 1,85,42,100/- is not sustainable and the same is hereby deleted." Before us, ld. DR could not bring any new facts on record to controvert the above findings of the CIT(A). Accordingly, we are with conformity with the findings of CIT(A) on the disputed issue and the same is upheld and this ground of appeal of Revenue is dismissed. 9. In the result, appeal of the Revenue is dismissed. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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