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TMI Blog2020 (2) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed by the Director had been later retracted on 01/10/2015 by the Director by filing an affidavit which are enclosed. But we find that the Director in his original statement had given a complete modus operandi of generation of unaccounted income and its utilization in his various businesses. Hence, the source as well as the application of unaccounted income had been discussed in detail in the statement recorded from the Director. We find that the only evidence that has been found in the course of survey by the survey team was excess cash found in the sum of ₹ 7,51,327/- based on the cash books in the months of July, August and September 2015 which admittedly pertains to A.Y.2016-17. CIT(A) had considered ₹ 7.5 Lakhs as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not made any addition towards cash found at the time of search and survey. Grounds raised by the assessee are partly allowed. - ITA No.4696/Mum/2018, ITA No.4697/Mum/2018, ITA No.4698/Mum/2018, ITA No.4699/Mum/2018 And ITA No.4700/Mum/2018 - - - Dated:- 14-2-2020 - Shri C.N. Prasad, JM And Shri M. Balaganesh, AM For the Assessee : Shri J.P. Bairagra For the Revenue : Shri Sandeep Raj ORDER PER M. BALAGANESH (A.M): These appeals in ITA Nos.4696/Mum/2018, 4697/Mum/2018, 4698/Mum/2018, 4699/Mum/2018 4700/Mum/2018 for A.Y.2010-11, 2011-12, 2012-13, 2013-14 2015-16 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-48, Mumbai in appeal No.CIT(A)-48/I.T.147 to 150 and 152/DCCC-2(2)/2017-18 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made in cash. In response thereto, the cashier responded that the sale amount of scrap is generated by sale of scrap by the assessee to M/s. Paresh Textiles, in support of which he gave the sample copies of tax invoices which are part of loose sheets in pages 61-64 of Annexure A-1 of impounded documents. It is pertinent to note that the scrap sale is liable for levy of excise duty. Survey team also asked the difference of ₹ 7,51,327/- in cash balance on the date of survey between the physical cash balance found and the cash balance as per the books of accounts. This was sought to be explained by the cashier by stating that the excess cash found physically was due to certain scrap sales made out of the books by the assessee which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ember 2015 by total sales for the said three months i.e. ₹ 46,40,38,395/- which worked out to 0.162% and accordingly made addition of unaccounted scrap sales thereon. 3.2. We find that the ld. CIT(A) had however ignored the said basis of working of unaccounted scrap sales addition made by the ld. AO and proceeded to make the addition on a different footing. We find that the ld. CIT(A) had observed that the unaccounted scrap sales for three months is ₹ 7.50 Lakhs approximately and hence the same for the whole year on extrapolation basis should be ₹ 30 Lakhs. Accordingly, he estimated the total scrap sale to be ₹ 30 Lakhs for A.Y.2015-16 and from that, reduced the scrap sales already accounted by the assessee and ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion could at all be made in the facts and circumstances of the instant case on an estimated basis. It is pertinent to note that against the addition made by the ld. CIT(A) on estimated basis, no appeal has been preferred by the revenue before us. Hence, what remains to be adjudicated by us is whether the estimation of scrap sale was made in a just and fair manner by the ld. CIT(A) in the prevailing facts and circumstances of the assessee. 3.4. We find that the statement given by the cashier subsequently confirmed by the Director had been later retracted on 01/10/2015 by the Director by filing an affidavit which are enclosed in page 396 and 397 of the paper book. But we find that the Director in his original statement had given a complete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled for relief of 50% of the total additions made by the ld. CIT(A) ultimately and in our considered opinion, this would meet the ends of the justice. The ld. AO is directed accordingly. 3.7. We find that the assessee had explained the entire cash found during search and survey at various places as under:- Cash found at Factory 7,94,900 Cash found at Office 2,000 Cash found at home 10,43,840 Total cash physically found 18,40,740 Balance as on Cash Book of assessee (SPYL) 15,37,727 Balance as per Cash Book of K ..... X X X X Extracts X X X X X X X X Extracts X X X X
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