9911796707
TMI Blog2023 (11) TMI 1297X X X X Extracts X X X X X X X X Extracts X X X X ..... O in total disregard of all the facts, circumstances and the evidence in the case as ordained by the CBDT in its Circular (supra). To apply the provisions of section 69A by the Ld. AO without satisfying the conditions precedent is not sustainable. On the facts and in the circumstances of the assessee s case, we have no hesitation in holding that the Ld. CIT(A) was perfectly justified in deleting the impugned addition. In no way his order can be branded as perverse, erroneous and not tenable on facts and in law. Appeal of the Revenue is dismissed. - DR. BRR KUMAR, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER For the Assessee : Shri R.S. Ahuja, CA For the Department : Shri Vivek Vardhan, Sr. DR ORDER PER ASTHA CHANDRA, JM: The appeal filed by the Revenue is directed against the order dated 20.07.2022 of the Ld. Commissioner of Income Tax (Appeals)-29, New Delhi ( CIT(A) ) pertaining to Assessment year ( AY ) 2017-18. 2. The Revenue has taken the following grounds of appeal:- 1. Whether on the facts in the circumstances of the ease and law, the Ld.CIT(A) is legally justified in deleting the addition on account of unexplained cash income of Rs. 1,45,00,000/- without appre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk statement. The person wise details of the salary and rent paid was also submitted before the Ld. AO. 3.2 The explanation of the assessee was not acceptable to the Ld. AO. He held that Rs. 1.45 crores is actual cash arranged / paid by the assessee to HKA which was available with the assessee. He therefore made an addition of Rs. 1,45,00,000/- under section 69A of the Act to the income of the assessee in assessment order dated 31.12.2019 passed under section 153A/143(3) of the Act observing as under: On bare perusal of the noting on this paper it is revealed that the payments noted thereon are actual payments and not in the nature of any planning The explanation of assess is nothing but a concocted story designed just to explain the document. The nature of payments such as advance taxes, HDFC bank deposits, bank instalments etc are the actual payments and hence the cash of Rs 1.45 crore is also the actual cash arranged paid by the assessee to Sh. Homender Kumar Arora. Accordingly, the cash of Rs 1.45 crore available with the assessee as per the noting made on page 30 of annexure A-B is held unexplained u/s 69A of the IT Act This mean an addition of Rs. 1,45,00,000/- to the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough note pad found and seized in search. In said noting one amount 1.45 cash has been written along with other amounts. The Ld. AO picked up the amount 1.45 cash and interpreted it as amount paid by him to his brother in isolation. The explanation given before the Ld. AO was reiterated before the Ld. CIT(A). It was argued that a dumb document has been interpreted unilaterally by the Ld. AO as payment by him of Rs. 1.45 crore to his brother. As a matter of fact the said nothing /jotting was a planning of funds required by his brother for meeting liability of his company, namely M/s. Aarone Developers (P) Ltd. in subsequent months which is backed by actual payment in subsequent months. However, the Ld. AO treated the explanation as a concocted story designed just to explain the document. 6.1 It is worthwhile at this stage to reproduce the findings of the Ld. CIT(A) recorded in para 7.4 of his appellate order:- 7.4 The AO however, not being satisfied t the appellant made an addition of Rs.145 Crores u/s 69A of the Act alleging by the explanation submitted by as unexplained money. On the perusal of the assessment order it was seen that the Assessing Officer has neither upon any of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res on the impugned sheet are projections. 7. In support of the well settled legal position that a non speaking document without any corroborative material, evidence on record and finding that such document has materialized into transactions giving rise to income of the assessee not disclosed in regular books of account, has to be disregarded for assessments to be framed pursuant to search operation, the Ld. CIT(A) relied on the following judicial precedents:- (i) Common cause v. UOI 77 taxmann.com 245 (SC) (ii) State v. Ganeswara AIR 1963 SC 1850 (iii) CIT vs. Anil Bhalla (2010) 322 ITR 191 (Del) (iv) CIT, Delhi (Central)-II v D K Gupta (2008) 174 Taxman 476 (Del) (v) CIT vs. Atam Valves (P) Ltd. (2009) 184 Taxman 6 (P H) (vi) Central Bureau of Investigation v. V.C. Shukla (1998) 3SCC 410 8. Perusal of the assessment order reveals that the impugned addition has been made under section 69A of the Act. Section 69A has been brought on the Statute Book by the Finance Act, 1964 w.e.f. 1.4.1964. The effect and scope of this provision has been explained by the CBDT in its Circular No. 20, dated 7th July, 1964 thus: Provision for assessment of unexplained money and the value of unexplaine ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
