2017 (12) TMI 1137

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f Rs. 5,00,000/- on account of alleged excess cash declared by assessee at the time of search but not offered to tax in his return of income. 3. The brief facts of the case as emanating from the records are: Search action u/s. 132 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') was conducted in the case of Solanki, Oswal and Dhumavwat group on 11.04.2011. Search operation u/s 132 was carried out at the residential premises of the assessee on 27.04.2011. During the course of search physical cash to the tune of Rs. 5,79,410/- was found, explanation was sought from the assessee in respect of aforesaid cash recovered. On 28.04.2011, the assessee sought a days time to explain the source of cash. Thereafter, statement of ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... premises of assessee. Since, the assessee could not reconcile cash in the absence of complete books of firm, the assessee declared Rs. 5,00,000/- as his personal undisclosed income. After search, when books of firm were completed, it transpired that Rs. 5,00,000/- found at the residential premises of assessee belongs to the firm. The books of the firm were audited and were presented at the time of assessment of the firm. The same were accepted by the Assessing Officer. Hence, stand of the assessee is vindicated that Rs. 5,00,000/- belongs to the firm and not to the assessee. Since cash balance of the firm was reconciled, the declaration made by assessee in his statement during the course of search on account of mistaken belief was not supp....