TaxTMI 
TaxTMI 
TaxTMI 
2021 (4) TMI 7
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.... Asstt. year 2010-11 Asstt. year 2011-12 Asstt. year 2013-14 Rs. 1,91,22,400/- Rs. 1,74,77,400/- Rs. 2,46,85,631/- 2. Since the grounds of appeal are identical, therefore, for the sake of convenience, the grounds of appeal filed by the revenue for the Asstt. year 2013-14 are reproduced as under :- "1 The Ld. CIT (A) has erred on facts and in law in deleting the addition of Rs. 2, 46, 85, 631/- u/s 68 of the I. T. Act, 1961 as the receipts in the ledgerised cash sheets inventorized under annexure A-2 by Party R-2 admittedly representing undisclosed receipts. 2 The Ld. CIT (A) has erred on facts and in law in observing that no separate income is recorded with ledger vis-a-vis Summary sheets whereas the AO has notices a difference of Rs. 2,46,85,631/- based upon such documents. 3 The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." 2. As a lead case we are taking the appeal for the assessment year 2013-14 and our findings given therein will apply mutatis mutandis in the appeals for the assessment years 2010-11 and 2011-12. The facts in brief, are that the search and seizure operati....
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....ani Minda. If the assessee's this submission of surrendered income is considered, there remains an unexplained amount of Rs. 2,46,85,631/-. On being asked about it, it has been submitted that this amount is part of the out of book transactions entered into by the assessee and there is a multiplicity/rotation of cash and the same was requested for consideration. I have considered the submission made by the assessee as well as the facts of the case and in my considered opinion the assessee has not been able to bring on record any cogent explanation of the cash receipts of Rs. 2,46,8.5,631/- which remains unexplained and accordingly the same are added to the income of the assessee u/s 68 of the IT Act being undisclosed receipts from undisclosed sources. (Addition of Rs. 2,46,85,631/-)" 4. Ld. CIT(A) after considering the contention of the assessee as well as finding of the AO and the perusal of the entire seized material referred to by the AO observed that the transaction of cash has been recorded and the following documents which are part of the seizure :- 1. A-5 of R-2 which is claimed to be summary of receipts and payments. 2. A-2 of R-2 which is claimed to be ledger acc....
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....- "For instance the summary sheet at annexure A-5 of R-2 records an amount under the head receipts (J P Minda on account) to the tune of Rs. 2,46,85,631/- for the financial year 2012-13. This amount has been picked up from annexure A2/R2 which is a ledger account of J P Minda loan account and the said amount represents total on the credit side during the financial year 2012- 13. Further the perusal of the cash book seized at AA-6 of R-2 shows that the following entries from the ledger account of ] P Minda group are also recorded in the cash book as follows: Ledger(A-2/R-2) Amount (Rs.) 04.12.2012 49,00,000 04.12.2012 13,00,000 24.12.2012 5,00,000 21.01.2013 9,41,521 Cash Book(AA-6/R-2) Amount (Rs.) 04.12.2012 49,00,000 04.12.2012 13,00,000 24.12.2012 5,00,000 21.01.2013 9,41,521 9. The perusal of the above detailed comparison shows that the amounts recorded in the cash book and ledger are duly represented in the summary sheet and therefore no independent and additional income could be taxable in respect of the entries in cash book and ledger as their impact has been recorded in the summary sheet and disclosed for tax purposes in return filed u/s 15 3....
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....h surrender was also accepted by the department for the aforesaid assessment years. That even for impugned assessment year i.e. AY 2013-14, a surrender of Rs. 1, 19, 24, 500/- was being made by Sh. Ashwani Kumar Minda, which has been duly noted and accepted by learned AO in the order of assessment (ii) Annexure A - 2, Party R - 2, Page Nos. 1 to 23 (at pages 5 to 27 of the paper book) * This document contained print out of some ledger accounts with respect to transactions as reflected in master cash book. This document basically reflected as to how the cash was withdrawn and deposited out of the inflows of money by the assessee. Ergo, this document was nothing but a party wise record of transactions mentioned in the master cash book. For instance, if we compare page nos. 61 to 62 of the paper book with page nos. 6 and 7 of the paper book, it would become amply clear that entries in the master cash book were only separately recorded in separate ledger accounts, and the ledger account merely recorded the withdrawals and deposits of cash out of inflows and did not contain any extra income or inflow. The aforesaid has been explained in detail by the Ld. Counsel in the form of tabul....
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....ge no. 18 of the said seized document has been placed at page no. 61 of the paper book, which contains following entries: Entries pertaining to the impugned assessment year are at Page no. 22 of the said seized document has been placed at page no. 6 of the paper book, which contains following entries 07.04 .2012 Rs. 31,95,000/- Rs. 18,00,000/- 07.04.2012 Rs. 31,95,000/- Rs. 18,00,000/- 12.04.2012 Rs. 46,00,000/- Rs. 2,00,000/- 12.04.2012 Rs. 46,00,000/- Rs. 2,00,000/- 30.04 .201 2 (P g 61 of PB) Rs. 5,00,000/- Rs. 9,41,600/- Rs. 2,00,000/- 30.04.2012 (P g 6 of PB) Rs. 5,00,000/- Rs. 9,41,600/- Rs. 2,00,000/- 07.05 .201 2 (P g 61 of PB) Rs. 3,00,000/- 18.05 .2012 Rs. 1,00,000/- 22.05 .2012 Rs. 15,00,000/- 07.05.2012 (P g 61 of PB) Rs. 3,00,000/- 18.05.2012 Rs. 1,00,000/- 22.05.2012 Rs. 15,00,000/- * Thus, the entire seized master cash book at pages 28 to 68 of the paper book can be compared with the ledger account of JPMJI so culled out from the seized ledger accounts at pages 71 to 77 of the paper book, which will amply make it clear that the said ledger is nothing but daily record of withdrawals an deposits by JPMJI in and out of ....