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TMI Blog2023 (1) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... he conclusion where the cash found from the premises of the assessee representing the unexplained money u/s 69A of the Act, in the given facts and circumstances. Even on merit, we note that the assessee in the statement furnished u/s 132(4) of the Act, has categorically stated about the documents found during the search proceedings that the same represent the undisclosed transaction of the firm namely M/s. M.K. Ceramics based on that undisclosed income of the firm was determined. Therefore, the AO has taken one of the possible view for holding that such undisclosed cash represent the application of undisclosed income determined in the hands of the firm. No reason to interfere in the order of the Ld. CIT(A). Hence, the ground of appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the hearing of appeal. 3. The only interconnected issue raised by the Revenue is that the Ld. CIT(A), erred in deleting the addition made by the AO for Rs. 15,50,000/- on account of cash found during the search proceedings from the premises of the assessee. 4. The briefly stated facts are that the assessee in the present case is an individual and was subject to search and seizure operation u/s 132 of the Act, dated 26/10/2010. In the course of search, the cash of Rs. 16,48,850/- was recovered from the premises of the assessee. On question by the AO in the notice issued u/s 142(1) of the Act, the assessee vide letter dated 22/02/2013 replied that out of such cash, the sum of Rs. 98,850/- belongs to the family members and balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore the cash found during search has not been explained by the assessee. As such the cash represents unexplained money u/s 69A of the Act. Thus, the AO made the addition of Rs. 15,50,000/- to the total income of the assessee in the order passed u/s 154 of the Act, dated 07/06/2015. 6. Aggrieved assessee preferred an appeal before the Ld. CIT(A). 7. The assessee before the Ld. CIT(A), submitted that there was undisclosed turnover of the partnership firm which has been assessed to tax in the Assessment Years 2005-06 to 2011-12 in the assessment framed u/s 153C of the Act. It was the contention of the assessee that his son Shri Kamal Kapasi was acting as a manager in the firm M/s M.K. Ceramics, and he was maintaining records an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering cash of Rs.15.50 lakhs as income of the appellant. The appellant is in appeal against the above mentioned order. The appellant contended that the return of income filed has been accepted by the AO while passing the order u/s. 143(3) of the Act, in which the appellant's contention that the cash found during the course of search belong to M/s. M.K. Ceramics, was accepted and no addition was made. That was the decision of the AO after application of mind, hence, this addition cannot be made by passing the order u/s. 154 of the Act, as it is not a mistake apparent from the record. On going through the facts of the case, the contention of the appellant is found factually correct that it is not a mistake apparent from record which can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .K. Ceramics made by the AO and the income offered by the appellant was accepted. The cash found from the appellant's premises against the total income at Rs.75.90 lakhs returned by M.K. Ceramics. Therefore, it stand explained, hence, additions may be deleted. On going through the submissions of the appellant and orders of M/s. M.K. Ceramics filed alongwith the submission, it is found that M/s. M.K. Ceramics returned income of Rs.75.90 lakhs on unaccounted turnover of Rs.3.79 crores from A.Y. 2005-06 to A.Y. 2011-12. Hence, cash found during the course of search is application of the income disclosed, hence, additions made by the AO are deleted. This ground of appeal is allowed. 8. Being aggrieved by the order of the Ld. CIT(A), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Securities Ltd. reported in 96 taxmann.com 417 has held as under: When the original assessment order was passed the same was after long drawn process of reasoning and as per catena of decisions powers under Section 154 of the Income Tax Act are not required to be exercised. As rightly observed, powers under Section 154 of the Income Tax Act can be exercised only when the mistake, which is sought to be rectified is an obvious mistake, which is apparent from the record and not a mistake, which is required to be established by long drawn process of reasoning on points. Under the circumstances, in the facts and circumstances of the case and considering the original assessment order passed by the learned Assessing Officer as well as the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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