Appellate Tribunal partially allows appeal, deletes cash addition under IT Act for assessment year 1998-99.

The Appellate Tribunal allowed the assessee's appeal in part, deleting the addition related to available cash of Rs.2,05,265 for the assessment year 1998-99 under section 153C of the IT Act. The Tribunal relied on a previous case within the family group where a similar addition was deleted based on the explanation of agricultural income. The decision was based on the precedent set in the case of Smt. Meena Devi, leading to the deletion of the available cash addition in this case.

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Issues:
Appeal against order of CIT(A) u/s 153C for AY 1998-99; Additions confirmed u/s 68 for IDBI bonds, property improvement, Greater Noida property, and available cash; Dismissal of grounds except for available cash addition; Explanation of available cash during search; Disagreement with AO's addition of available cash; Comparison with similar case of Smt. Meena Devi; Deletion of available cash addition by ITAT.

Analysis:
The appeal was filed against the CIT(A)'s order for the assessment year 1998-99 under section 153C of the IT Act. The grievance of the assessee primarily concerned additions confirmed under section 68 for various items, with a focus on the available cash amount. The Appellate Tribunal dismissed the other grounds raised by the assessee and decided to only address the addition related to the available cash. The search at the residential premises led to the addition of cash in the hands of the assessee, which was contested based on the opening cash balance and bank statements provided. Despite the explanations, the AO added the available cash during the assessment. The CIT(A) reworked the available cash and retained an addition of Rs.2,05,265, leading to the assessee's further appeal.

During the proceedings, the learned AR referred to a previous ITAT order concerning a similar case within the family group, where the addition on account of available cash was deleted. The Tribunal reviewed the case of Smt. Meena Devi, another family member, and noted that the agricultural income explained the cash in hand. The Tribunal highlighted that the source of cash was agricultural income and found the explanation satisfactory, leading to the deletion of the addition. Given the similarities between the cases, the Appellate Tribunal decided to delete the addition of Rs.2,05,265 as retained by the CIT(A), following the precedent set in the case of Smt. Meena Devi.

In conclusion, the appeal of the assessee was allowed in part, with the addition related to available cash being deleted based on the findings and reasoning presented. The decision was pronounced in the open court on 21 February 2010.

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