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TMI Blog2022 (10) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... The cash seized by the Department is supported by the entries in the cash book by way of closing balance on 29/1/2019, but the source of the additional income introduced on 29/1/2019 is not established. Assessee says that except this business they do not have any other source of income. If that be so, its not known where from this additional income of Rs. 95,23,000/- in respect of the main branch and Rs. 78,17,790/- in respect of branch SR Nagar is generated to show in the cash book. Authorities found that this particular amount that was introduced by way of additional income is not business income since the business income is subsumed into the amount that was seized. We too have no material to take a different view. In these circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, 1961 (for short the Act ) were initiated. 3. Assessee filed the return of income on 21/10/2019 for the assessment year 2019-20 declaring a total income of Rs. 3,54,07,140/-. During the course of assessment proceedings the assessee stated that the source of cash found in the search and seizure operation was out of repayment of principal as well as interest from the customers, and generated during the regular course of business activities. Learned Assessing Officer, however, found that the assessee had shown the additional income of Rs. 1,73,40,790/- in the P L Account under the head additional income (as accepted under section 132 proceedings of IT Act), but in the Balance Sheet the cash of Rs. 1,73,40,790/- seized by the De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,323/- were duly accepted by the learned Assessing Officer, in the absence of any adverse finding regarding the gross receipts from the business, additional income and net profit from such business declared by the assessee, the source of cash is duly explained in terms of receipt of interest and principal portion loans received from the customer. He further submitted that there are sufficient cash balance in the cash book prior to the date of search and seizure, the cash balance as on 29/1/2019 in both the branches of the assessee was to the tune of Rs. 1,75,15,646/-, the cash seized is duly explained from the entries recorded in the cash books which form part of its books of account and the surrender amount was in relation to business acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts and duly accounted as no addition was made on account of the seizure in the assessment order. Learned Assessing Officer, however, added only that sum which is introduced by the assessee to the tune of Rs. 1,73,40,790/- as unexplained money under section 69A of the Act and taxed the same under section 115 BBE of the Act. Basing on the submissions made by the assessee, Ld. CIT(A) found that the assessee effectively accepts the introduction of cash, but is confusing and incorrect in stating that the seized cash was considered unaccounted, but as a matter of fact, it is not the seized cash that was found unaccounted but it is the cash that was reintroduced that was held to be unaccounted money. According to the Ld. CIT(A) the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount in the cash book only to the extent of the money seized by the Department, since they declared the same, it cannot be said that the assessee had introduced the physical cash into the business to tax it at a higher rate. Lastly he submits that since the assessee had already disclosed the income of Rs. 1,73,40,790/- in order to give a quietus to the litigation and to buy peace from the Department and to avoid penalty and prosecution proceedings, there cannot be any higher rate of tax under section 115BBE of the Act in this case. 10. Per contra, Ld. DR submits that insofar as the amount that was seized by the Department, there is no dispute and the learned Assessing Officer made no addition in respect of the same. Such a cash represen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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