2019 (9) TMI 1396

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....by ld. AO as undisclosed income of the assessee on a/c of alleged unexplained cash found during the course of search. 2. The assessee prays for leave to add, to amend, to delete, to modify the all or any grounds of appeal on or before the hearing of appeal." 2. The assessee is a partnership firm and derives income from financial brokerage. There was a search and seizure action under section 132 as well as the survey under section 133A of the IT Act on 7th January, 2016 on Shri Ramesh Chand Manihar Group to which the assessee belongs. During the course of search proceedings, a total cash of Rs. 15,59,085/- was found from the premises of the assessee at 303, Ratna Sagar, MSB Ka Rasta, Johari Bazar, Jaipur. In the statement recorde....

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....e action and in the statement recorded under section 132(4). The AO has not made any addition on account of the cash found at the business place of the assessee. However, the AO has made the addition of cash of Rs. 2,59,140/- which was found during the survey proceedings at 203, Ratna Sagar, MSB Ka Rasta, Johari Bazar, Jaipur which is not the business premises of the assessee. He has referred to the copy of Panchnama at paper book page 1 and submitted that the authorized warrants were issued and executed in cases of M/s. Amarnath Associates, M/s. Jai Amarnath Associates (assessee), M/s. Amarnath Exim Linkers and the partners of these firms. Therefore, when the cash was found at 203, Ratna Sagar, MSB Ka Rasta, Johari Bazar, Jaipur and the as....

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....a self serving document. He has relied upon the orders of the authorities below. 5. We have considered the rival submissions as well as the relevant material on record. We find that during the search and seizure action on 07.01.2016 the cash of Rs. 15,59,085/- was found at the premises of the assessee at 303 Ratna Sagar, MSB Ka Rasta, Johari Bazar, Jaipur. The assessee explained the source of the said cash and consequently in the assessment framed by the AO under section 143(3) read with section 153B(1)(b) of the Act, the AO has not even proposed to make any addition on that account. However, the AO proposed to make an addition of Rs. 2,59,140/- on account of unexplained cash found during the survey conducted at 203, Ratna Sagar, MSB Ka ....