TaxTMI 
TaxTMI 
2022 (2) TMI 526
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....he return was selected for scrutiny and notices u/s 143 (2) and 142(1) of the Act were issued and after considering the submissions filed by the assessee, an addition of Rs. 15,89,438/- was made u/s 69 A of the Act and the assessed income was determined at Rs. 1, 88,25,218/-. 3. On appeal, the addition so made by the AO has been confirmed by the Ld.CIT(A) and against the said findings of the Ld.CIT(A), the assessee is in appeal before us. 4. During the course of hearing, the Ld. AR taken through the assessment order and submitted that in this case, Sundernagar police intercepted a vehicle on 09.11.2016 and cash of Rs. 76 lacs was found in the possession of driver Shri Avdesh Kumar and co- passenger Shri Jagmohan. The said cash was requisitioned and seized u/s 132 A of the Act by the Income tax Department on 17.11.2016. It was submitted that the statement of these persons were thereafter recorded and they claimed that the cash belonged to Shri Amitabh Sharma, Director of M/s SKI Himalayas Ropeways Pvt. Ltd. and thereafter the statement of Shri Amitabh Sharma was recorded u/s 131(1 A) of the Act, wherein he admitted that the cash belonged to the assessee company i.e. M/s SKI Hi....
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....he assessment order and findings of the AO, the AO has not conducted any independent enquiries and solely basis the findings of the Investigation Wing, the addition had been confirmed by the AO. It was submitted that during the course of assessment proceedings, the assessee submitted copy of its cash book, bank books as well as bank statement as well as complete books of account and there is no adverse findings recorded by the AO regarding non- reporting of its cash receipts from sale of the tickets. It was accordingly, submitted that when the assessee' s cash book and its books of accounts were not rejected, there is no basis for making the addition u/s 69 A of the Act. Drawing our reference to the findings of the Investigation Wing, the Ld. AR further submitted that the Investigation Wing in its report has stated that the ticket register produced by the assessee is manipulated and fictitious and fresh entries have been made to inflate sale proceeds of the ropeway business. In this regard, it was submitted by the Ld. AR that such a finding is not supported by any corroborative evidence on record and not a single entry has been pointed out either by the Investigation Wing or by the....
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....t convincing at all. Cash of Rs. 76,00,000/- was found and seized during the demonetization period on 09.11.2016. Surprisingly, the cash book produced by the appellant shows cash in hand at Rs. 81.64 lacs as on 08.11.2016. The A.O. found that the appellant is regularly depositing cash in his bank account located in PNB, Palchan Branch, Manali. The last deposit was made on 08.11.2016 of Rs. 4,25,250/-. In fact, cash deposits were regularly made, detailed as under:- 01.11.2016 204650 02.11.2016 344250 03.11.2016 464300 04.11.2016 508950 05.11.2016 493650 07.11.2016 375010 07.11.2016 387100 08.11.2016 425250 Total 3203160 Hence, to accept the contention of the appellant that it had huge cash in his books of accounts when the cash was found and seized cannot be accepted. Surprisingly, the appellant itself has offered Rs. 57,25,000/- as already undisclosed income as income from other services/sale of Misc. disposable items over and above the ropeway operational receipts. No distinction can be made between the receipts offered for taxation and not offered for taxation out of the seized cash. No basis whatsoever is available f....
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....ition for invoking provisions of section 69 A is concerned that during the financial year, the assessee is found to be owner of the cash so seized, the said condition is satisfied in the instant case. 11. The second condition for invoking provisions of section 69 A is that cash so found is not recorded in the books of accounts, if any so maintained by the assessee for any source of income and the assessee offers no explanation about the nature and source of acquisition of the money, or the explanation offered by it is not satisfactory in the opinion of the Assessing Officer. In the instant case, the assessee is in the business of running of passenger ropeway project at Solang in district Kullu and has maintained its books of accounts and has reported cash in hand of Rs. 81. 64 lacs on 8. 11.2016 in its books of accounts, a day prior to the date when the vehicle was intercepted and cash amounting to Rs. 76 lacs was found and seized belonging to the assessee company. It has been contended by the assessee company that the said cash in hand of Rs. 81. 64 lacs includes cash of Rs. 76 lacs which has been found and seized which comprises of a sum of Rs. 13,50,000/- pertaining to cash r....
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.... not normal where the bank is locally available cannot be accepted. 14. Further, the Assessing officer has stated that documents produced by the assessee regarding receipts from sale of tickets cannot be accepted and has referred to and relied upon the report of the Investigation wing for reaching such a conclusive finding. Where we look at the report of the Investigation Wing, it states that the ticket register produced by the assessee is manipulated and fictitious and fresh entries have been made to inflate the sale proceeds of the ropeway, though without highlighting which all entries falls under such category and basis of arriving at such a conclusion, and at the same time, it has asked the Assessing officer to conduct independent enquiries. During the course of assessment proceedings, the assessee has produced its books of accounts before the Assessing officer for necessary verification as evident from submissions of the assessee dated 27.11.2018 placed at APB page 10 and we find that there is no finding recorded by the Assessing officer regarding any fictitious sale entries recorded by the assessee in its books of accounts. Therefore, the findings recorded by the Assessing....