9911796707
TMI Blog2023 (8) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... te of Diwali at the residence of the assessee, it is unbelievable that the assessee cannot have a single rupee since the lower authorities have not even given credit of a single rupee. In this view of the matter, we set aside the order of the CIT (A) and direct the AO to delete the addition. Decided in favour of assessee. - SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER For the Appellant : Shri Kumar Pal Tated, CA For the Respondent : Shri Rajendra Kumar, CIT(DR) ORDER Per R.K. Panda, A.M This appeal filed by the assessee is directed against the order dated 2.12.2022 of the learned CIT(A)-11, Hyderabad, relating to A.Y. 2019-20. 2. Facts of the case, in brief, are that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made by the Assessing Officer by observing as under: 6. Decision: In the instant case, assessment u/s. 153A was completed by making the following additions: 1. Disallowance of excess claim of pre-construction period interest or borrowed loans of Rs. 16,819/-. 2. Unexplained money u/s. 69A of Rs. 3,27,650/- being the cash seized during the search action u/s. 132A. The appellant has contested only the addition of Rs. 3,27,650/- Going into the facts of the case, the appellant individual is engaged in the business of photo accessories. An amount of Rs. 3,27,650/- was seized from the residence of the appellant on 07.11.2018 by the Hyderabad Police. Search action u/s. 132A was conducted by the Investigation wing in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined, the appellant has not filed the cash book with supportings nor has taken plea that the cash book as produced before the Assessing Officer with necessary evidence. Multiple opportunities (six in number on 07/03/2022. 23/02/2022, 31/03/2022, 20/04/2022. 09/06/2022 and 05/07/2022) have been given to the appellant. It is important to note that just because one has turnover and income does not mean that one necessarily has cash in hand. The appellant was aware of the fact that the Cash was seized and il would be required to prove the source of the same norm of Cash book in the assessment proceedings but the appellant has failed to do so. There is a probability that the appellant might have cash balance but the onus is on the appellant to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 01.09.2021 which is bad both under facts and law. 2.The Ld. AO erred in making an addition of Rs. 3,27,650/-to the income as Unexplained money in hands of assessee u/s 69A. 3. The Ld. CIT(A) ought to have appreciated the fact that the cash relates to his business cash sales and the same has been deposited in bank account. 4. The Ld. CIT(A) ought to have appreciated the fact that the AO erred in not considering the submissions made by the assessee and went on to add the entire amount of Rs. 3,27,650/- as unexplained money u/s 69A. 5. The Ld. CIT(A) ought to have appreciated the fact that assessee is maintaining the complete books of accounts and is been audited u/s 44AB of the act. As per the audited Financials the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,650/-. In another plank of his argument, he submitted that the assessee is maintaining complete books of account which are audited u/s 44AB of the I.T. Act since A.Y 2018-19. Referring to the audit report for A.Y 2018-19, he submitted that the closing cash balance available with the assessee as on 31.3.2018 is Rs. 2,77,199/-. He accordingly submitted that as on 1.4.2018, the assessee was having a cash balance of Rs. 2,77,199/-. He submitted that for the impugned A.Y, the assessee has declared income of Rs. 10,45,940/- and his total turnover was Rs. 7,67,11,862/-. Thus, the assessee had enough source to have cash balance of Rs. 3,27,650/- with him as on 17.11.2018 i.e. on the date of search. He submitted that during the assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Counsel for the assessee that the assessee is a regular tax filer and has declared more than Rs. 38.00 lakhs as income in the last 5 years on which taxes have been paid. Further, the accounts for the A.Y 2018-19 were audited according to the cash balance for the year as on 31.3.2018 is Rs. 2,77,199/- which is otherwise the cash available as on 1.4.2018. It is also his submission that the search took place in the date of Diwali at the residence of the assessee and the cash available with various family members is sufficient to explain the source of such cash balance of Rs. 3,27,650/-. 11. We find some force in the above argument of the learned Counsel for the assessee. As mentioned earlier in the preceding paragraph, the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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