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TMI Blog2022 (2) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... not satisfactory - Findings recorded by the AO that documents so produced in support of sale receipts from tickets sales are not reliable cannot be accepted in absence of any findings recorded either by the Investigation wing or any independent findings recorded by the Assessing officer himself. In light of the same, we are of the considered view that the onus which has been cast on the Assessing officer to record a categorical finding that the cash so found has not be recorded in the assessee s books of accounts has not been satisfied in the instant case and therefore, the second condition for invoking the provisions of section 69 A cannot be held to be fulfilled in the instant case. AO considering the fact that the bank was closed on 09. 11. 2016, had given benefit of average receipt of ropeway from 1st November 2016 to 15 th November 2016 amounting to ₹ 2,85, 562/- to the assessee company without appreciating the fact that Sundernagar police intercepted the vehicle carrying the cash on 09. 11. 2016 and the said cash was requisitioned and seized u/s 132 A of the Act by the Income tax Department subsequently on 17.11. 2016. The position of average receipt of ropeway pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the possession of driver Shri Avdesh Kumar and co- passenger Shri Jagmohan. The said cash was requisitioned and seized u/s 132 A of the Act by the Income tax Department on 17.11.2016. It was submitted that the statement of these persons were thereafter recorded and they claimed that the cash belonged to Shri Amitabh Sharma, Director of M/s SKI Himalayas Ropeways Pvt. Ltd. and thereafter the statement of Shri Amitabh Sharma was recorded u/s 131(1 A) of the Act, wherein he admitted that the cash belonged to the assessee company i.e. M/s SKI Himalayas Ropeways Pvt. Ltd. Thereafter during the post- requisition proceedings the assessee submitted that a sum of ₹ 13,50,000/- pertains to cash received on sale of disposable material and a sum of ₹ 43,75,000/- pertains to cash received from reference from hotels and various activities in Solang Valley and the remaining sum of ₹ 18,75,000/- pertains to cash in hand and in support, copy of Daily Sale Book, Register for income from reference from hotels, income from reference from fun games and reference income from paragliding and cash receipt of disposable sale were submitted before the Investigation Wing. The submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not rejected, there is no basis for making the addition u/s 69 A of the Act. Drawing our reference to the findings of the Investigation Wing, the Ld. AR further submitted that the Investigation Wing in its report has stated that the ticket register produced by the assessee is manipulated and fictitious and fresh entries have been made to inflate sale proceeds of the ropeway business. In this regard, it was submitted by the Ld. AR that such a finding is not supported by any corroborative evidence on record and not a single entry has been pointed out either by the Investigation Wing or by the AO which supports such a finding so recorded by the Investigation Wing and which has been summarily accepted by the AO. It was accordingly, submitted that there is no basis for making the addition where all the receipts from sale of tickets have been duly accounted for in the books of account of the assessee. 7. Further our reference was drawn to the findings of the Ld. CIT(A) where he has stated that given that the assessee had offered ₹ 57,25,000/- as income from other sources , no distinction can be made between the receipt offered for taxation and not offered for taxation out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 344250 03.11.2016 464300 04.11.2016 508950 05.11.2016 493650 07.11.2016 375010 07.11.2016 387100 08.11.2016 425250 Total 3203160 Hence, to accept the contention of the appellant that it had huge cash in his books of accounts when the cash was found and seized cannot be accepted. Surprisingly, the appellant itself has offered ₹ 57,25,000/- as already undisclosed income as income from other services/sale of Misc. disposable items over and above the ropeway operational receipts. No distinction can be made between the receipts offered for taxation and not offered for taxation out of the seized cash. No basis whatsoever is available for making only partial disclosure out of the total cash seized. The A.O. after analyzing and giving the credit for the cash sales for the period 1st Nov. to 15th Nov. at ₹ 2,85,562/-, treated the balance amount of ₹ 15,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. The second condition for invoking provisions of section 69 A is that cash so found is not recorded in the books of accounts, if any so maintained by the assessee for any source of income and the assessee offers no explanation about the nature and source of acquisition of the money, or the explanation offered by it is not satisfactory in the opinion of the Assessing Officer. In the instant case, the assessee is in the business of running of passenger ropeway project at Solang in district Kullu and has maintained its books of accounts and has reported cash in hand of ₹ 81. 64 lacs on 8. 11.2016 in its books of accounts, a day prior to the date when the vehicle was intercepted and cash amounting to ₹ 76 lacs was found and seized belonging to the assessee company. It has been contended by the assessee company that the said cash in hand of ₹ 81. 64 lacs includes cash of ₹ 76 lacs which has been found and seized which comprises of a sum of ₹ 13,50,000/- pertaining to cash received on sale of disposable material, a sum of ₹ 43,75,000/- pertaining to cash received from reference from hotels and various activities in Solang Valley, and the remaining su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced by the assessee regarding receipts from sale of tickets cannot be accepted and has referred to and relied upon the report of the Investigation wing for reaching such a conclusive finding. Where we look at the report of the Investigation Wing, it states that the ticket register produced by the assessee is manipulated and fictitious and fresh entries have been made to inflate the sale proceeds of the ropeway, though without highlighting which all entries falls under such category and basis of arriving at such a conclusion, and at the same time, it has asked the Assessing officer to conduct independent enquiries. During the course of assessment proceedings, the assessee has produced its books of accounts before the Assessing officer for necessary verification as evident from submissions of the assessee dated 27.11.2018 placed at APB page 10 and we find that there is no finding recorded by the Assessing officer regarding any fictitious sale entries recorded by the assessee in its books of accounts. Therefore, the findings recorded by the Assessing officer that documents so produced in support of sale receipts from tickets sales are not reliable cannot be accepted in absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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