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TMI Blog2023 (4) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... treating it as undisclosed income u/s 69 and the CIT(A) rightly deleted the impugned addition without any ambiguity so as to warrant interference. Decided in favour of assessee. - IT(SS)A No.157/Ind/2021 - - - Dated:- 16-3-2023 - Ms. MADHUMITA ROY, JUDICIAL MEMBER And SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT MEMBER For the Revenue : Shri P. K. Mishra, CIT.D.R. For the Assessee : Shri S.N. Agrawal, CA ORDER PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the Revenue is directed against the order dated 09.08.2021 passed by the Ld. CIT(A)-3, Bhopal (M.P.) (hereinafter referred to as Ld. CIT(A) ) arising out of the order dated 28.12.2019 passed by the DCIT (Central)-2, Indore (hereinafter referred to as Ld. AO ) under Section 143(3) of the Income-Tax Act, 1961 (hereinafter referred to as the Act ) for Assessment Year (hereinafter referred to as A.Y. ) 2018-19 with the following ground: 1. On the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in law in deleting the addition amounting to Rs. 2,08,10,930/- on account of undisclosed income u/s 69 of the Income Tax Act 1961. 2. The assessee is partner in the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective parties and perused the relevant material available on record. 5. The Ld. Counsel for the assessee submitted that the Ld. AO separately considered the amounts mentioned in the messages found from the mobile phone of the assessee on multiple occasion even though many of those messages were related to the same transaction. The Ld. Counsel further submitted that most of the messages found from the mobile phone of the assessee contained reference of the amounts received against sale of oil made by the firm, M/s MG Oils which was duly accounted for in the books of accounts of M/s MG Oils. The Ld. Counsel demonstrated his contention by drawing our attention at Page Nos. 42- 60 of the Paper Book wherein screenshots of the messages found from the mobile phone of the assessee and working prepared showing the correct amount computed on the basis of those messages was filed. The Ld. Counsel explained that the correct amount after removing the double effect of various messages linked to the same transaction and also after removing the effect of messages containing the reference of the amounts which were received against sale of oil by M/s MG Oils came to Rs. 89,33,930/- as against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel also relied upon a catena of judicial precedents in support of his aforesaid contention. 8. We have considered each and every plea raised by the Ld. Counsel during the course of hearing before us. We find that the Ld. CIT(A) while allowing the appeal preferred by the assessee observed as follows: 4.2. Ground Nos 1 to 3 for A.Y. 2018-19: - Through these grounds of appeal the appellant has challenged the addition made by the AO amounting to Rs: 2,08,10,930/- on account of undisclosed income u/s 69 of the IT Act, 1961 and charging of tax liability thereupon by invoking the amended provision of section 115BBE of the Act. The assessing officer while passing the assessment order added the entire amount as found in the mobile messages as income of the appellant. Detail of amount as added in the case of the appellant was provided on Page Nos 6 7 of the Assessment order. The assessing officer observed that the appellant during the course of search stated that these messages are related to the sale of oil but in post search proceeding the appellant claimed that these messages also related to the sale of Arbi by the farmers through local transporter. The appellant merely facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing officer added both these amounts. The appellant provided complete list of the transactions considered twice or thrice by the assessing officer on Page Nos 58 59 of the Compilation. On perusal of the said list, the contention of the appellant seems correct. The correct amount calculated as per message was of Rs 89,33,930/- only and not of Rs 2,08,10,930/- as added by the assessing officer. 4.2.1. The appellant further contended that in any case entire amount of message cannot be constituted as income of the appellant. The assessing officer simply stated that cash was received by the appellant and therefore the same was taxed as income of the appellant. If the assessing officer rejected the contention of the appellant, in that case, it is the duty of assessing officer to explain the correct nature of transactions as recorded in the messages but the assessing officer failed to do so. Considering the overall facts of the case and submission as filed by the appellant, it is evident that the assessing officer added the entire amount as found recorded in the message which in any case is not justifiable. The amount received in small denomination on different dates. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of the assessee or not and also irrespective of the fact as to whether those amounts were being taxed on multiple occasions or not. The Ld. AO was also not mindful of the fact that some amounts mentioned in those messages pertained to a single transaction which were being taxed multiple times. For instance, on going through the screenshots of the messages found from the mobile phone of the assessee and working prepared showing the correct amount computed on the basis of those messages as annexed on Page No. 42-60 of the Paper Book, it shall appear that several amounts were being taxed twice i.e. at S. No 12, LPS-10 on Page No. 18, Page No. 7 of the assessment order, message was written with Telephone Number with a instruction to collect an amount of Rs. 14,77,000/- and in next message on S. No. 13, LPS-10 on Page No. 19, it was stated that an amount of Rs. 14,77,000/- was received but both these amounts were added by the Ld. AO. Similarly on S. No. 15, LPS-10 on Page No. 21, inner Page No. 7 of the assessment order, it was stated to collect Rs. 15,00,000/- and in next message at S. No. 16, LPS-10 on Page No. 22, there was a confirmation in respect of the amount of Rs. 15,00,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel has categorically explained the fact that the messages found from the mobile phone of the assessee contained reference of amounts which were received by the assessee against sales made by the firm, M/s MG Oils which was duly accounted for in the books of accounts of M/s MG Oils. Hence, considering the totality of the facts, we are of the considered opinion that since the Ld. AO herself while passing the assessment order in the case of M/s MG Oils observed that cash was deposited in the bank account of few of the customers by the assessee or by the staff of the firm, M/s MG Oils, this in itself proves that the entire amount of cash received by the assessee as noticed through the messages found from his mobile phone was related to the customers of M/s MG Oils to whom sales were made and duly accounted for in the books of accounts of M/s MG Oils and accordingly, there was no justification for making separate addition to the total income of the assessee on this count. 11. Thus, considering the entire aspect of the matter, we are of the considered opinion that there was no justification for making addition of Rs. 2,08,10,930/- to the total income of the assessee on account of amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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