TaxTMI 
TaxTMI 
2023 (2) TMI 517
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....he learned CIT(A) sustaining additions aggregating to Rs.10,00,626/- under section 69A of the Act made by the A.O., is bad both in the eyes of law and on facts. 2. That on the facts and circumstances of the case, Ld. CIT(A) has erred both on facts and in law in confirming addition to the extent of Rs. 10,00,626/- u/s 69A of the Act on account of cash found during the course of search and seizure operation as unexplained money by ad-hoc estimation of expenses incurred." 3. In this case, following assessment order was passed under section 143 (3) read with section 153A of the Income-tax Act, 1961 (for short 'the Act') :- " In this case original return u/s 139 of the I.T. Act declaring income of Rs.46,21,330/- was filed on 31.08....
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....s or profession' and 'Income from other source'. The case is heard and discussed with the Ld. A/R. After discussion, the total income of the assessee for the A.Y. 2018-19 is computed as under:- Returned Income : Rs. 46,21,330/- Assessed income : Rs. 46,21,330/- Assessed u/s. 153A/143(3) of the I.T. Act, 1961. Calculate tax and charge interest as per law. Give credit for prepaid taxes. Copy of the order and demand notice are being issued to the assessee. This order has been passed with the prior approval of the Addl.CIT, Central Range 5, New Delhi vide his approval letter No.Addl.CIT/CR-5,Approval 153-D/2019-20/2016 dated 29.12.2019." Thereafter, the AO passed a rectification order u/s 154 of the Act. In this, inter....
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....anshu Raj Goyal travel outside India to attend medical conference etc and foreign currency found belongs to him and his son which is leftover from their foreign travel. 1. 1. During the course of assessment proceedings assessee has tried to justify the excess cash of Rs. 30,86,926/- through professional receipts earned by the assessee 1. 1. Further, on perusal of the ITR form of the assessee, it is noticed that assessee has shown gross receipts of Rs.31,29,300/- and offered the same as per the provisions of section 44ADA of the Income Tax Act, 1961. Apart from above assessee has also earned professional receipt subsequently amounting to Rs.4,00,000/- reflected in the bank statement for the year under consideration and which forms part....
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.... of Rs.31,29,300/- is duly substantiated from the documents seized during the course of search. He noted that assessee has stated that AO has erred in determining the cash-in-hand due to following reasons :- "The AO wrongly taken deemed expenses @ 50% of gross turnover under section 44ADA as expenses actually incurred by the appellant by ignoring non- cash expenses i.e. depreciation and expenses incurred on accrual basis which defeat the intend of the legislature, Nature of expenses incurred of Rs -60,000/- was not specified in assessment order, Wrongly taken cash deposited in bank account of Rs 4,00,00Q/- while such cash was deposited in bank account after the date of search and therefore cannot be considered for the purpose of'....
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....lso not ruled out." 6. Ld. CIT (A) observed that there were some merits in the assessee's submissions and held as under :- "The AO has not given any detail of reducing Rs.60,000/- while calculating the cash available in the hands of the appellant. Therefore, this reduction of Rs.60,000/- is deleted. 6.6.2 Similarly, Rs.4,00,000/- which was deposited into the Bank ale after the date of search is also deleted. 6.6.3 Claim of the appellant in respect of non cash expenses can be ruled out. However, the appellant has not provided details of such expenses. Still keeping in mind that there would have been some non cash expenses also, one third of expenses calculated by AO i.e. Rs.5,21,650/- (one third of Rs.15,64,650) is allowed. 6.7 N....
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....263 of the Act, which is not actually correct. How these additions of cash have been done u/s 154 claiming that there was a mistake apparent from record in the original order, is not borne out anywhere in the records. Apart from the above, we note that assessee has filed return under presumptive taxation regime of section 44ADA in which books of accounts were not required. Assessee's submissions in explanation of cash-in-hand are sufficiently cogent. The estimate of cash by the ld. CIT (A) was also not done on correct basis. Ld. CIT (A) himself stated that claim of the assessee in respect of non-cash expenses cannot be ruled out. However, the assessee has not provided details of such expenses. This is a strange observation and ld. CIT (A) h....