TaxTMI 
TaxTMI 
2022 (10) TMI 1046
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....re that the assessee is a partnership firm and is engaged in the finance business of providing loans to the borrowers who wish to buy four wheelers and two wheelers. Assessee charges interest on loans as per the terms and conditions of the loan agreement with borrowers. A search and seizure operation was conducted at the premises of the assessee on 30/1/2019 during the course of which an amount of Rs. 95,23,000/- was found in the head office situated in Somajiguda and another sum of Rs. 78,17,790/- was found in the branch office in SR Nagar Hyderabad. Total amount seized was Rs. 1,73,40,790/-. Consequently proceedings under section 153A of the Income Tax Act, 1961 (for short "the Act") were initiated. 3. Assessee filed the return of income....
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....he cash book to the extent of the cash seized by the Department and such cash introduced into the books of account represents unexplained money under section 69A of the Act. Learned Assessing Officer accordingly brought this amount to tax and applied the provisions under section 115 BBE of the Act for taxing the same. 5. Aggrieved by such an action of the learned Assessing Officer, assessee preferred appeal before the Ld. CIT(A) and submitted that when the gross receipts from the business amounting to Rs. 23,58,46,195/-, additional income as accepted under section 132 of the Act to the tune of Rs. 1,73,40,790/- and net profit of Rs. 3,54,07,323/- were duly accepted by the learned Assessing Officer, in the absence of any adverse finding reg....
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....ent to the cash seized in the books and enhanced its cash balance to the quantum before the seizure. Ld. CIT(A) further observed that there are two entries of cash which belonged to the assessee, namely, one which was seized by the Department and the other is the one introduced in the cash book subsequent to the seizure, out of which the assessee offered the subsequent entry made to the effect of Rs. 1,73,40,790/- as additional income. 7. Ld. CIT(A) found that the learned Assessing Officer on examination of the books accepted the contention of the assessee that the cash seized by the Department as on the date of search is part of books of accounts and duly accounted as no addition was made on account of the seizure in the assessment order.....
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....the Act and the same is forming part of business receipts only. Learned AR argued that after the search, the assessee reduced the cash balance to the extent of Rs. 1,73,40,790/- but in order to give a quietus to the issue and to buy peace, the assessee offered the said amount as its income and therefore, increased the cash balance by Rs. 1,73,40,790/-. He therefore submits that the cash book of the assessee was continued with a balance of Rs. 1,75,15,646/- even after the cash seized by the Department, and the assessee paid the taxes by recording the same in the cash books. He submits that since the assessee had shown the additional amount in the cash book only to the extent of the money seized by the Department, since they declared the same....