TaxTMI 
TaxTMI 
2023 (4) TMI 1110
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....In response to the notices u/s 143(2) & 142(1) of the Act, the AR of the assessee appeared before the Assessing Officer from time to time and furnished the requisite details. 3.1 During the course of assessment proceedings, the Assessing Officer noted that during the course of search action on 15.11.2018, cash of Rs.16,03,550/- was found. A sworn statement of Shri Tikaram Sharma, Cash Assistant of M/s. Disha Foods Pvt Ltd was recorded on 15.11.2018 wherein he could not explain the difference satisfactorily. The Assessing Officer, therefore, asked the assessee to explain the source of cash found amounting to Rs.16,03,550/- and as to why this amount should not be treated as unexplained cash. 3.2 The assessee explained that the cash so found is out of the cash balance as per individual books of a/c of Shri Adarsh Agarwal, M.D and his family members. The cash balance as on the date of search was explained to be as under: Name & Place Cash balance as per books as on 15.11.2018 As per Panchanama Seized amount M/s. Disha Foods (P) Ltd 5,92,469 16,03,550 16,00,000 Adarsh Agarwal 1,04,805 Kavita Agarwal 7,27,313 &nbs....
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....td. During the assessment proceedings also the assessee has given the same explanation. 4.7 The of explanation of the assessee that the cash as per personal books of Directors of the Company and cash pertaining to business entities of the Directors in personal capacity is kept at the office premises of M/s Disha Foods Pvt Ltd is a protracted explanation. If it is a practice of Sri Adarsh Agarwal to keep cash of the Directors at office premises of M/s Disha Foods Pvt Ltd, Sri Tikaram Sharma would have explained the same during the course of search proceedings. 4.8 In any case, cash of the assessee Company M/s Disha Foods Pvt Ltd ought to have truly reflected in its cash book on daily basis and in the event of any transfer of cash either in or out, the same should have been reflected in the books of account of M/s Disha Foods Pvt Ltd. 4.9 Sri Tikaram Sharma, being Cash Assistant of M/s Disha Foods Pvt Ltd, during the normal course of performing his duties, might be aware if cash belong to the Directors of the Company in their individual capacity, as per their personal books, is kept at the office premises of M/s Disha Foods Pvt Ltd. In the statement, Sri Ti....
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....plained cash u/s 69A of the Income Tax Act and the same is added to the total income of the assessee for the A.Y 2019-20." 7. The Assessing Officer accordingly made addition of Rs.16,03,550/- u/s 69A of the I.T. Act. 8. Before the learned CIT (A), the assessee made elaborate arguments based on which the learned CIT (A) deleted an amount of Rs.6,98,473/- holding the same to be available on the date of search as per books of account of the company and Director of the company Shri Adarsh Agarwal and sustained the balance amount of Rs.9,05,120/-. 9. Aggrieved with such order of the learned CIT (A) the assessee is in appeal before the Tribunal by raising the following grounds. "1. The order of the learned CIT (A) is erroneous to the extent it is prejudicial to the appellant. 2. The learned CIT (A) is erred in sustaining the addition to the extent of Rs.9,05,120/- on the ground that there is no nexus between the cash available with Harsh Bakers, its proprietor Sri Adarsh Agarwal and the Director of the appellant company. 3. The learned CIT (A) erred in confirming the addition of Rs.9,05,120/- u/s 69A of the I.T. Act though the Assessing Officer did not....
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....ing Officer made the addition merely on the basis of the statement of the Accountant of the assessee company Shri Tikaram Sharma. A perusal of the assessment order shows that the Assessing Officer basically made the addition on the basis of the statement of the Accountant Shri Tikaram Sharma. However, it is neither coming from the assessment order nor from the order of the CIT (A) or from the Paper Book filed by the assessee as to whether the statements of the Directors of the assessee company were recorded or not and whether they have been asked any question or not on this issue either during the course of search or during the course of assessment proceedings especially when Mr. Ramesh Agarwal, on behalf of all family members and the companies had declared Rs.100 crores as undisclosed income. We find an identical issue have come up before the Coordinate Bench of the Tribunal in the case of Ankit Biscuits (P) Ltd (Supra) and the Tribunal has restored the issue to the file of the Assessing Officer by observing as under: "9. We have heard the rival arguments made by both the sides, perused the orders of the AO and the CIT (A) and the paper book filed on behalf of the assesse....