2022 (6) TMI 452

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....under Section 143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Years 2011-12. 2. The only interconnected issue raised by the assessee is that the learned CIT-A erred in confirming the addition made by the AO for Rs. 3,12,325.00 on account of mismatch of the cash shown in the cash book viz a viz audited financial statement at the end of the financial year as on 31st of March 2011. The facts in brief are that the assessee in the present case is an individual and engaged in the activity of tours and travelling. The assessee in his balance sheet as on 31 March 2011 has shown cash balance of Rs. 2,96,249.00 whereas the cash book filed in the course of the assessment the cash balance was....

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....n made by the authorities below. It was further stated in the written submission that the cash balance shown in the audited financial statement should be relied upon for the reason that it has been duly verified and attested by the qualified chartered accountant. Accordingly, the cash balance shown in the cash book should be ignored and therefore no addition is warranted merely on account of difference in the cash balance as discussed above. 6. On the contrary, the learned DR vehemently supported the order of the authorities below. 7. We have heard the learned DR and perused the materials available on record. Admittedly, there was the difference in the amount of cash balance shown in the cash book viz a viz audited financial statement....

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....rdingly, we set aside the finding of the learned CIT-A and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed. 9. In the result the appeal filed by the assessee is allowed. Coming to ITA 166/RJT/2018 10. The assessee has challenged the confirmation of the penalty by the learned CIT-A which was levied by the AO under the provisions of section 271(1)(c) of the Act for Rs. 32,169.00 being hundred percent of tax sought to be evaded on account of furnishing inaccurate particulars of income. 11. At the outset, we note that the addition on the basis of which the penalty was levied upon the assessee by the AO has ceased to exist. In other words, the quantum addition made by the AO has....