2022 (9) TMI 74

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....d in upholding the addition of Rs.3,82,84,000/- made u/s 69A of the IT. Act, 1961 as unexplained money on account of cash found at the residence and from the bank lockers of the appellant during the course of search action u/s 132 on 31.07.2014, not accepting the explanation of the appellant that the said cash belonged to the M/s Rashmi Ameya Development Housing and Estate Realtors Pvt. Ltd, in which company the appellant is one of the directors and therefore the addition in the hands of the appellant is not justified and bears to be deleted." 2. Brief facts of the case are that the assessee/appellant is an individual and is a promoter director in the MAAD Group of Companies, the prominent ones being M/s Maad Relaters and Infra Ltd. & M/....

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....ullion, jewellery or other valuable article or thing and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act. [Explanation.-For the removal of doubts, it is hereby declared that the examination of any person under this sub-section may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act.] [(4A) Where any books of account, other documents, money, bullion, jewellery or othe....

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....n terms of finality and admissibility of the statement given and about the ownership of cash, etc. Found in the possession and control of the assessee. 6. In this case, there is no doubt assessee himself has given statement and any element of pressure or coercion not found. It is also evident that cash has been found at the premises and locker of the assessee. Assessee's submission before the Ld. CIT (A) vide page 4, para 5 & 6, we are reproducing as under: "[5. During the appeal proceedings, on behalf of the appellant, it is claimed that while cash totalling to Rs.3,82,84,000/- was found during search, the appellant was under tremendous psychological pressure and erroneously admitted the said amount to be his additional income.....

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.... of the appellant and ignored the statement of Shri Anil Gupta (another director) which was also recorded during the search Reliance is also placed on the copy of cash flow statement of M/s RADHE submitted in the course of assessment proceedings of M/s RADHE, which shows that on the day of search, there was sufficient cash available with M/s RADHE It is claimed that the fact that search action revealed cash of Rs.59,23,77,100/- received by M/s RADHE as advance towards proposed sale of land, plots, FSI from various parties has not been disputed by the AO. It is also submitted that the appellant in post search proceedings vide letter dtd.21/11/2014, filed with the DDIT (inv)-1, had clarified that cash found at his residence and bank lockers b....

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....placed on the decisions in the case of K.S. Mohammed Vs. ITO (1989) 33 TTJ (Bom) 468, CIT Vs. A.N. Dyanshewaran (2008) 172 Taxman 110 (Mad) and Premier Car Sales Ltd Vs. DGIT (2013) 40 taxmann.com 19 (All)." 7. The above submission of the assessee has to be read with the finding of Ld. CIT (A), he made with reference to assessee's submission on page 22, para 14 as under: "14. On behalf of the appellant a copy of letter dtd.9/9/2016 along with cash flow statement of M/s RADHE submitted in the course of assessments of M/s RADHE has also been produced. A perusal of the said cash flow statement, indicate cash receipt and payments end on 31/7/2014 # sum of Rs.3,82 84,000/- has been shown as cash seized from Devendra Ladhani from the ....

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....bai v. Rakesh Ramani [2018] 94 taxmann.com 461 (Bombay HC) 4. Deputy Commissioner of Income Tax, Central Circle - 23 v. Kanakia Hospitality (P.) Ltd. [2019] 110 taxmann.com 4 (Mumbai - Trib.) 5. Joint Commissioner of Income Tax Central Circle 1(3), Hyderabad v. Narayana Reddy Vakati [2021] 128 taxmann.com 377 (Hyderabad - Trib.) 9. Considering the submission of the assessee and the law pronounced as discussed (supra), such a vital submission of the assessee cannot be ignored. The cash flow statement which has been produced by the company and relied upon by the Department has a very specific reference of the amount found at the residence and locker of the assessee. Ignoring this fact will tantamount to double addition of....