TaxTMI 
TaxTMI 
2023 (2) TMI 517
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....rcumstances of the case, the order passed by the 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.....
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....Property', income from medical professionals under head 'Income from business 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/....
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....s accumulated over the years by the family members of the assessee. 4. In respect of foreign currency, assessee has submitted that his son Shivanshu 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 assesse....
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....lenging the addition made on account of jewellery as well as cash of Rs.19,82,276/- u/s 69A of the Act. Ld. CIT (A) noted that before him, it was stated that provisional receipt 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, ....
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....9;ble ITAT, Chandigarh in the case or Nand Lal Popli, vs, The Deputy Commissioner of Income Tax, [2016] 71 taxmann.com 246. Further, the expenses were incurred through banking canners and credit card is also 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 ha....
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....arent on record. A reading of the assessment order and the order u/s 154 nowhere speaks of any mistake which has occurred in the assessment order. The order passed by the AO is as if he is sitting into the shoes of ld. CIT and passing an order u/s 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 als....