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TMI Blog2022 (2) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 (hereinafter referred to as Act) dated 29/12/2017 by the ld. Dy. Commissioner of Income Tax, Central Circle 6(2), Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in this appeal of the revenue is as to whether the ld CIT(A) was justified in deleting the addition made on account of cash outgo of Rs. 5,69,93,024/- u/s 69 of the Act in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. We find that the assessee is engaged in the business of construction. A search and seizure action was carried out u/s 132 of the Act on 25.06.2015 in Ahuja Group and assessee was one of the group companies. During the course of search, vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,89,900/- (23,83,89,900)/- 2015-16 25,91,94,000/- 22,60,94,000/- 3,31,00,000/- 2016-17 1,64,800/- 1,64,800/- Total 66,00,93,401/- 68,38,21,625/- (2,37,28,224)/- 3.2. The ld AO from the aforesaid table observed that during the Asst Year 2014-15, the on money reversal is more than the on money receipts and that overall there is an excess cash outgoing, resulting in negative cash balance of Rs. 5,69,93,024/-. The ld AO observed that this negative cash balance remain unexplained and hence treated the same as unexplained income u/s 69 of the Act while framing the assessment for the Asst Year 2014-15. 3.3. The assessee submitted that totally 9 pen drives were found in the course of search which are marked as Annexu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oup without any entity wise segregation. This fact was also duly confirmed by Shri Jagdish Ahuja, promoter of Ahuja group in his statement recorded u/s.132(4) of the Act on 28/06/2015 while giving reply to Question No. 42 thereon. The assessee also sought to explain that on-money receipts from various customers are shown as receipts in the parallel books of accounts and out of the same, some customers deals are not materialised and hence, part of the on-money receipts or whole of them had to be returned back to the customers. This return of on-money has been shown as on-money reversals in the cash book maintained in Tally. The assessee also submitted that one more aspect of reversal is due to erroneous manner of recording receipts of on-mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t one of the receipts of money in the parallel books of accounts represent on-money receipts and on-money reversals are shown as cash out-go in the very same parallel books of accounts maintained in Tally package. These facts are not disputed at all. Overall on-money reversal are much lesser than on-money receipts, hence, there cannot be any separate addition treating a part of the transaction as unexplained income u/s.69 of the Act. It was also pointed out that there was absolutely no negative cash balance in the parallel books of accounts maintained by the assessee in the whole Ahuja group. The assessee submitted that the payments made are reflected in the parallel books of accounts and since there is no negative cash as per the Tally dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore us. 3.6. It is not in dispute that parallel books of accounts containing on-money receipts, on-money reversals, cash loans taken by the assessee, cash loans repaid, interest paid in cash for such cash loans and expenses incurred in cash were duly reflected in the parallel books of accounts maintained in Tally accounting software package. It is not in dispute that the transactions reflected in the aforesaid parallel books of accounts were pertaining to the whole Ahuja group. This fact is also accepted and acknowledged by the ld. AO in para 10.8 at page 13 of his assessment order. Hence, what is to be seen is whether there is any negative cash balance in the parallel books of accounts maintained by the assessee. We find that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions made on account of net on-money in the case of various group entities of the Ahuja group for A.Y.2014-15 and also on account of inflation of expenses and other income. These facts clearly go to prove that there is lot of force in the submission of the ld. AR that there was absolutely no negative cash balance in the parallel books of accounts maintained in the Tally package. Hence, we hold that there is absolutely no infirmity in the order of order of the ld. CIT(A) granting relief to the assessee as there is no negative cash balance in the parallel books of accounts maintained for the whole Ahuja group which is the primary basis for making an addition per se. 3.8. In view of the aforesaid observations, we hold that the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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