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TMI Blog2023 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... d rental income. Therefore, considering the fact that the assessee is having source of income to explain unexplained cash deposits and capital introduction, we direct the Assessing Officer to delete addition towards unexplained cash deposit and capital introduction. Unexplained gold jewellery of 1480 gms found during the course of search - explanation of the assessee before the AO and CIT(A) that entire gold jewellery found during the course of search cannot be assessed in his hands, because gold jewellery is belongs to his entire family and was acquired over a period of time from its savings and income of family members - HELD THAT:- We find force in the arguments of assessee, for the simple reason when family members are residing in a common house, obviously the jewellery belongs to various family members cannot be assessed in the hands of one person, more particularly when family members includes ladies. It is also an admitted fact that it is customary in India that ladies acquire gold jewellery out of their savings over a period of time. It is also admitted fact that the CBDT itself has directed the Department not to seize jewellery to the extent of 500 gms for married ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly allowed. - SHRI MANJUNATHA. G, HON BLE ACCOUNTANT MEMBER AND AND SHRI MANOMOHAN DAS, HON BLE JUDICIAL MEMBER For the Appellant by : Shri. B. Ramakrishnan, FCA For the Respondent by : Shri. R. Mohan Reddy, CIT ORDER PER MANJUNATHA. G, ACCOUNTANT MEMBER: This appeal filed by the assessee is directed against the order passed by the Commissioner of Income Tax (Appeals)- 18, Chennai, dated 29.05.2019 and pertains to assessment year 2016-17. 2. The assessee has raised the following grounds of appeal: 1. The order of the Learned Commissioner of Income Tax (Appeals) is contrary to the law, facts and circumstances of the case. 2. For that the Learned Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs. 6,64,481/-as unexplained cash deposits in the bank account (Tax Effect Rs. 2,05,325/-). 3. The Learned Assessing Officer erred in not mentioning the section under which the unexplained cash deposits are brought to tax under the Income Tax Act, 1961 (the Act.). 4. Without prejudice to ground no 3, the Learned Assessing Officer has used the words unexplained cash deposits , in the assessment order and henc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal may be pleased to delete the above additions, confirmed by the Commissioner of Income Tax(Appeals) and / or pass such other orders as this Hon'ble Tribunal may deem fit. 3. The brief facts of the case are that, the assessee is a partner of the firm M/s. Al Aziz Broilers, which deals in poultry products. The assessee has an equal share in the firm along with Shri. Khaleel Basha, his relative. The assessee did not file any return of income on his own till Search and Seizure operation was conducted in his residence, as a part of the search operation in the case of SS Hyderabad Biryani Private Limited group on 24.08.2015. Consequent to search, notice u/s. 153A of the Income-tax Act, 1961 (hereinafter referred to as the Act ) was issued, requiring the assessee to file the return. In response to the notice, the assessee filed return of income on 19.12.2017, declaring total income of Rs. 1,38,600/-. The assessment has been completed u/s. 143(3) r.w.s. 153B(1)(b) of the Act, on 29.12.2017 and determined total income of Rs. 75,85,625/-, by making additions towards unexplained cash deposits and capital introduction for Rs. 6,64,481/-, unaccounted cash found during searc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignoring explanation furnished by the assessee with regard to the source for cash deposits and capital introduction. We further noted that, the assessee is a partner in a partnership firm having 50% share of profit. The partnership firm was subjected to Search and Seizure by the Department. On appeal before the tribunal, the ITAT in ITA No. 68 69/Chny/2022, directed the Assessing Officer to estimate 8% profit on total turnover and allow 90% of total expenditure claimed in the profit and loss account which results in net profit for assessment years 2015-16 and 2016- 17 to Rs. 1.20 crores, and assessee s share of profit works out to Rs. 59.95 lakhs. If you consider the assessee s share of profit out of income assessed in the hands of the partnership firm, then obviously the assessee can explain source for cash deposits, out of income from partnership firm and rental income. Therefore, considering the fact that the assessee is having source of income to explain unexplained cash deposits and capital introduction, we direct the Assessing Officer to delete addition of Rs. 6,64,481/- towards unexplained cash deposit and capital introduction. 8. The next issue that came up for our co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o fact that the assessee is having sufficient source of income to explain source for jewellery found during the course of search, out of income assessed in the hands of his partnership firm, we deem it appropriate to allow relief to the extent of 1000 gms out of total jewellery of 1980 gms found during the course of search. Therefore, we direct the Assessing Officer to sustain addition of 980 gms in the hands of the assessee and delete remaining 1000 gms of jewellery, which assessee claims to have been belongings of his family members. 10. The next issue that came up for our consideration from ground no 10 11 of assessee s appeal is addition towards unaccounted cash found during search at Rs. 15,70,650/-. During the course of search, physical cash of Rs. 15,70,650/- was found. It was the explanation of the assessee before the Assessing Officer that out of total cash of Rs. 15,70,650/-, a sum of Rs. 6,66,450/- found during the course of search pertains to partnership firm. It was further explained that remaining cash balance belongs to himself and his family members and source for said cash is out of his savings and business income. The Assessing Officer, was not convinced with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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