2019 (10) TMI 117

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....ubbed and heard together and disposed of by way of this consolidated order. 2. Facts in ITA No.353/VIZ/2018, in brief, are that the assessee is an individual engaged in the business of transport, filed his return of income admitting total income of Rs. 2,70,000/-. The case of the assessee was selected for scrutiny manually with the approval of the Pr.CIT, Vijayawada. In the assessment order, the Assessing Officer has noted that during the course of vehicle surveillance by the flying squad set up for election purpose in Madurai on 19/03/2016, a sum of Rs. 18.01 lakhs were found in the possession of assessee and Sri Taragala Laxman. When asked about the details of cash found, the assessee and Sri Taragala Laxman have admitted that the cash....

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....n 30/10/2017. During the course of assessment proceedings, the Assessing Officer has asked the assessee to substantiate the source of cash of Rs. 10.10 lakhs. The assessee only filed confirmations before the Assessing Officer, therefore, the Assessing Officer was of the opinion that the assessee has failed to bring the loan creditors in respect of loan taken by the assessee of Rs. 7.00 lakhs, hence the same is added to the total income of the assessee. Subsequently, the Pr.CIT by exercising powers conferred in section 263, issued a notice to the assessee and opined that the order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue for the following reasons:- a) As the cash was seized u/sec. 1....

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.... We have heard both the sides, perused the material available on record and orders of the authorities below. 6. In this case, during the course of vehicle surveillance by the flying squad set up for election purpose in Madurai Central Assembly Constituency, a sum of Rs. 18.10 lakhs was found on 19/08/2016 in the possession of the assessee and Sri Tharagala Lakshmana Rao. When they have been asked for the source, it was submitted by the assessee that Rs. 10.10 lakhs belonging to him and the remaining balance of Rs. 8.00 belongs to Sri Tharagala Lakshmana Rao. The Surveillance team not satisfied with the explanation given by the assessee and the amounts seized from both the parties and handed over to the District Treasury, Madhurai. Subseq....