Tribunal dismisses revenue's appeal, upholds CIT(A)'s decisions. Assessee's cross-objections allowed for statistical purposes.

The Tribunal dismissed the revenue's appeal and allowed the assessee's cross-objections for statistical purposes. The Tribunal upheld the CIT(A)'s decisions regarding the deletion of additions and found no merit in the revenue's arguments.

---

---

Issues Involved:
1. Deletion of addition of Rs. 76,29,000/- made under Section 69 read with Section 115BBE of the Income Tax Act, 1961.
2. Deletion of addition of Rs. 16,43,150/- made under Section 69A read with Section 115BBE of the Income Tax Act, 1961.
3. Validity of approval given under Section 153D of the Income Tax Act, 1961.
4. Charging of interest under Sections 234A, 234B, and 234C of the Income Tax Act, 1961.
5. Initiation of proceedings under Section 271AAC of the Income Tax Act, 1961.

Detailed Analysis:

1. Deletion of Addition of Rs. 76,29,000/-:
The revenue contested that the Commissioner of Income Tax (Appeals) [CIT(A)] was not justified in deleting the addition of Rs. 76,29,000/-, which was based on seized digital data showing investment in flats. The Assessing Officer (AO) added this amount as unexplained investment under Section 69 read with Section 115BBE of the Income Tax Act, 1961, due to the assessee's failure to provide documentary evidence. The CIT(A) deleted the addition, noting that Rs. 40,00,000/- was recorded in the memoranda cash book of the assessee's father, who had sufficient cash balance to cover the investment. The Tribunal upheld the CIT(A)'s decision, emphasizing that the memoranda cash book had been accepted in earlier years and there was no contrary finding from the revenue.

2. Deletion of Addition of Rs. 16,43,150/-:
The revenue argued against the deletion of Rs. 16,43,150/-, found as cash during a search and considered unexplained money under Section 69A read with Section 115BBE. The assessee claimed the cash was received during marriage ceremonies and supported this with the denomination of the notes found. The CIT(A) accepted the alternative plea that the cash could be covered by the cash balance in the memoranda cash book of the assessee's father. The Tribunal found no merit in the revenue's argument and upheld the CIT(A)'s deletion of the addition, noting the factual findings and the availability of cash in the memoranda cash book.

3. Validity of Approval under Section 153D:
The assessee challenged the approval given under Section 153D as being mechanical and without application of mind. The Tribunal found this ground to be technical and infructuous, given that the findings on merits were in favor of the assessee.

4. Charging of Interest under Sections 234A, 234B, and 234C:
This issue was deemed consequential, and the AO was directed to give necessary effect in accordance with the law.

5. Initiation of Proceedings under Section 271AAC:
The Tribunal noted that the levy of penalty under Section 271AAC was not the subject matter of the current appeal and thus did not require adjudication.

Conclusion:
The Tribunal dismissed the revenue's appeal and allowed the assessee's cross-objections for statistical purposes. The Tribunal upheld the CIT(A)'s decisions regarding the deletion of additions and found no merit in the revenue's arguments. The order was pronounced in open court on 08/12/2022.

---