TaxTMI 
TaxTMI 
2023 (1) TMI 529
X X X X Extracts X X X X
X X X X Extracts X X X X
....ferred to as "the Act"), relevant to the Assessment Year 2011-2012. 2. The Revenue has raised the following grounds of appeal: 1. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in deleting the addition made by the AO by no appreciating the fact that the assessee has failed to substantiate the source of cash found from his possession and therefore, the AO was right in taxing the amount in the hands of assessee as per the provisions of section 69A of the Income-tax Act, 1961. 2. On the facts and circumstances of the case in law, the Ld.CIT(A) has erred in deleting the addition made by the AO of Rs.15,50,000/- on account of cash found from the assessee's premises during the search proceedings, by not ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es of the assessee in his order dated 2/02/2013. 5. However, the AO subsequently found that the element of cash found from the premises of the assessee for Rs. 15,50,000/- has not been accepted by the partnership firm namely M/s MK Ceramics in the assessment framed for the Assessment Years 2005-06 to 2011-12. Thus, the AO was of the view that there is a mistake apparent from the record, crept in the order which requires to be rectified u/s 154 of the Act. Accordingly, the AO sought an explanation from the assessee by issuing notice u/s 154 of the Act, dated 08/01/2015. The assessee in response to such notice reiterated his submission as made during the assessment proceedings by contending that the cash belongs to the firm namely M/s. MK Ce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed the addition made by the AO by observing as under : 5. Submission of the appellant and order u/s.154 of the Act have been carefully considered. The appellant filed return of income on 29.3.2013 showing income of Rs.2,25,650/. The assessment u/s. 143(3) of the Act was completed on 28.2.2013 and returned income was accepted. The AO found later on that during the course of search on 16.10.2010 at appellant's premises, cash of Rs.16,48,850/- was found out of which 15.50 lakhs were seized. The appellant stated that this money belong to M/s. M.K. Ceramics and the same has been offered by M/s. M.K. Ceramics in the return of income filed u/s.153C of the Act. However, the AO noticed that M/s. M.K. Ceramics did not show the cash found during....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as per seized document Profit on unaccounted turnover disclosed in the return of income filed u/s. 153C 2005-06 28,97,047 5,79,409 2006-07 43,65,598 8,73,120 2007-08 42,10,656 8,42,131 2008-09 70,98,672 14,19,734 2009-10 77,52,118 15,50,424 2010-11 80,05,255 16,01,051 2011-12 36,23,119 7,24,624 Total 3,79,52,465 75,90,493 The assessment of M/s. M.K. Ceramics made by the AO and the income offered by the appellant was accepted. The cash found from the appellant's premises against the total income at Rs.75.90 lakhs returned by M.K. Ceramics. Therefore, it stand explained, hence, additions may be deleted. On going through the submissions of the appellant and orders of M/s. M.K. Ceramics f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he application of the undisclosed income of the firm and therefore, no separate addition is warranted. 11. Both the Ld. DR and the Ld. AR vehemently supported the order of the authorities below as favourable to them. 12. We have heard the rival contentions of both the parties and perused the materials available on record. The Hon'ble High Court of Gujarat in the case of PCIT v/s Aura Securities Ltd. reported in 96 taxmann.com 417 has held as under: "When the original assessment order was passed the same was after long drawn process of reasoning and as per catena of decisions powers under Section 154 of the Income Tax Act are not required to be exercised. As rightly observed, powers under Section 154 of the Income Tax Act can be exercise....