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TMI Blog2023 (4) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ad for rejection of the other part which is not favourable to it, or in respect of which no supporting material is found. We, therefore, under the given facts and circumstances of the case and also the ratio laid down in Radhasoami Satsang [ 1991 (11) TMI 2 - SUPREME COURT] find no inconsistency in the finding of the ld. CIT(Appeals) deleting the addition made by the ld. Assessing Officer wrongly adopting the figure of unaccounted assets in place of the unaccounted capital offered by the assessee in the return of income filed under section 153A of the Act. Grounds No. 1 to 3 raised by the Revenue are dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... essee contended that it is following the consistent system of accounting for calculating the unaccounted income for A.Ys. 2012-13 to 2015-16 and has offered the unaccounted capital as undisclosed income. However, the ld. Assessing Officer was not satisfied and he after giving the benefit of unaccounted income declared by the assessee at Rs.3,08,800/- made the addition for the remaining amount of Rs.3,47,53,664/- i.e. the value of unaccounted assets and income assessed at Rs.3,73,96,724/-. Aggrieved, the assessee preferred appeal before the ld. CIT(Appeals) and succeeded. 4. The ld. CIT(Appeals) found merit in the contentions made by the assessee holding that there is no discretion available with the Department to rely upon a part of the document favourable to it and plead for rejection of the other part, which is not favourable to it or in respect of which no supporting material is found. The ld. CIT(Appeals) further held that the ld. Assessing Officer has not rebutted that the undisclosed assets, liabilities and capital shown in the seized balance sheet do not belong to the appellant and since the assessee has already declared a sum of Rs.3,08,800/- for the relevant assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heard the rival contentions and perused the relevant material placed before us. The Revenue is aggrieved with the finding of ld. CIT(A) deleting the addition of Rs.3,47,53,664/- made by the ld. Assessing Officer on account of undisclosed income. We observe that the assessee-company was subjected to search and various incriminating material were found. Based on the incriminating material, the assessee filed details by working out the disclosure by calculating unaccounted assets, unaccounted liability, unaccounted sales, unaccounted capital and thereafter calculated the cumulative value and offered unaccounted capital after adjusting disclosure upto the previous year thereby offering undisclosed income at Rs.16,13,645/-, Rs.3,08,800/- and Rs.53,49,618/- for A.Y. 2012-13, 2013-14 and 2014-15 respectively. There is no dispute before us at the end of revenue for A.Ys. 2012-13 and 2014-15. The dispute pertains to A.Y. 2013-14, wherein the ld. Assessing Officer has adopted the value of unaccounted assets at Rs.3,50,62,464/- liable to be taxed as unaccounted income. The assessee challenged the action of the ld. Assessing Officer stating that the assessee has adopted the unaccounted capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gregating the unaccounted portion it offered additional income for A.Y.2012-13 to 2015-16 based on unaccounted capital and the AO accepted the same for A.Y.2009-10 to A. 7.2012-13 and A.Y.2015-16. However for the assessment year under appeal, the AO adopted a different approach by taking into consideration the highest of unaccounted assets, unaccounted capital, unaccounted liability and unaccounted net profit. The appellant further brought to the notice that the undisclosed liability of Rs 3,50,55,906/- was pertaining to F.Y.2013-14 relevant to A.Y.2014-15 and therefore taxing the same as undisclosed liability for assessment year 2013-14 is also a fallacy beyond correction. Inspite of the same the appellant submitted that it has (made disclosure of Rs.3,08,800/- as a matter of abundant precaution and suffered tax and interest thereon. The other main contention of the appellant is that the AO has accepted the amount of undisclosed capital computed by the appellant in other group companies in search proceedings and thus the AO cannot substitute principle of taxing the difference of unaccounted liabilities ignoring the declaration without any cogent reason and taking conflicting stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Kol. - Trib.); CIT v. D.D. Gears Ltd. [2012] 25 taxmann.com 562/211 Taxman 8 (Delhi)(Mag.), it has been held that a seized/impounded document should be read as a whole. Further, under section 292C presumption is available to the Department in respect of any books of account, other documents, money, bullions, jewellery or other valuable article or thing if found in the possession or control of any person in the course of search u/s 132 or survey u/s 133A, in any proceedings under this Act. This section states as under:- "292C. Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of search under section 132, it may, in any proceeding under this Act, be presumed - (i)that such books of account other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person; (ii) that the contents of such books of account and other documents are true; and (iii) that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pto previous year) A B C D E F F G H 2012-13 1613645 1613645 1613645 1613645 1613645 Cumulative 1613645 1613645 1613645 1613645 1613645 1613645 2013-14 35062464 308800 35055906 6558 12352028 308801 153062 308801 Cumulative 36676109 1922445 35055906 1620203 12352028 308801 1766705 1922445 308800 2014-15 5651860 5349618 5651860 80291218 2007280 5651860 Cumulative 42327969 7272063 35055906 7272063 92643246 2316081 1766705 7272063 5349618 2015-16 7586206 8651551 7586206 131155843 3278896 2686925 8651551 Cumulative 49914175 15923614 35055906 14858269 223799089 5594977 4453630 15923614 10. From perusal of the above chart as well as the detailed finding of the ld. CIT(Appeals), we find merit in the contentions made by the ld. counsel for the assessee because in A.Ys. 2012-13 to 2015-16, cumulative amount of unaccounted capital has been offered to tax and has been duly accepted by the ld. Assessing Officer. For instance, A.Y. 2012-13- Rs.16,13,645/- has been offered, for A.Y. 2013-14- Rs.3,08.800/- has been offered, for A.Y. 2014-15- unaccounted capital shown by the assessee is Rs.53,49,618/- and it has also been a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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