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TMI Blog2019 (10) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... on given by the assessee and the amounts seized from both the parties and handed over to the District Treasury, Madhurai. Subsequently, the ADIT (Inv.), Unit I II has transferred the case to the DGIT (Inv.), AP Telangana, who made enquiries in this case and reported that sources have been verified and found to be correct and seizure of cash is not warranted. Subsequently, case was transferred to the Assessing Officer for taking necessary action. AO selected this case manually for scrutiny after obtaining permission from the Pr.CIT. The Assessing Officer made detailed enquiries and called the assessee to explain the source and after considering the explanation, he made the addition of ₹ 7.00 lakhs and the same is brought to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roval of the Pr.CIT, Vijayawada. In the assessment order, the Assessing Officer has noted that during the course of vehicle surveillance by the flying squad set up for election purpose in Madurai on 19/03/2016, a sum of ₹ 18.01 lakhs were found in the possession of assessee and Sri Taragala Laxman. When asked about the details of cash found, the assessee and Sri Taragala Laxman have admitted that the cash of ₹ 10.10 lakhs is belonging to the assessee and ₹ 8.00 lakhs belonging to Sri Taragala Laxman. Since these two persons could not furnish any documentary evidence regarding the source of cash, the said cash was seized and handed over to the District Treasury, Madhurai. The ADIT (Inv.), Unit-I II, Madurai has obtained w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove background, the Assessing Officer has scrutinized the case manually and after following due procedure, assessment was completed u/sec. 143(3) on 30/10/2017. During the course of assessment proceedings, the Assessing Officer has asked the assessee to substantiate the source of cash of ₹ 10.10 lakhs. The assessee only filed confirmations before the Assessing Officer, therefore, the Assessing Officer was of the opinion that the assessee has failed to bring the loan creditors in respect of loan taken by the assessee of ₹ 7.00 lakhs, hence the same is added to the total income of the assessee. Subsequently, the Pr.CIT by exercising powers conferred in section 263, issued a notice to the assessee and opined that the order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made, therefore, the order passed by the Assessing Officer is neither erroneous nor prejudicial to the interest of the Revenue. 4. On the other hand, ld.DR supported the order of the Pr.CIT. 5. We have heard both the sides, perused the material available on record and orders of the authorities below. 6. In this case, during the course of vehicle surveillance by the flying squad set up for election purpose in Madurai Central Assembly Constituency, a sum of ₹ 18.10 lakhs was found on 19/08/2016 in the possession of the assessee and Sri Tharagala Lakshmana Rao. When they have been asked for the source, it was submitted by the assessee that ₹ 10.10 lakhs belonging to him and the remai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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