TaxTMI 
TaxTMI 
2023 (10) TMI 694
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....ances of the case and in law, the ld. CIT(A) is not justified in sustaining addition of Rs. 18,95,859/- out of total addition of Rs. 43,86,000/- on account of cash found during search from the residential premises of the appellant by rejecting the explanation that the said amount of cash belonged to the appellants company Easy Trip Planners Pvt. Ltd. 3. That the ld. CIT(A)-23 was not justified in upholding the action of AO in taxing the cash found during search u/s 115BBE of the Income Tax Act, 1961." 3. A search and seizure action u/s 132 of the Income Tax Act 1961 was carried out in Easy Trip Planners Pvt. Ltd. (ETPPL) group of cases on 10.08.2017 during F.Y. 2017-18. During search at C-179, Phase-I, Vivek Vihar, New Delhi, the residen....
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.... As per the reply of the assessee the cash belonging to the family members was appearing in the personal Balance Sheet of the family members as on 31.03.2017. As regards cash belonging to Pitti Coal Company and Easy Trip Planners Pvt. Ltd. the assessee had submitted extracts of Cash Book for the period from 01.04.2017 to 10.08.2017. The AO in the order had observed that the contention of the assessee was not acceptable since the assessee had failed to file the cash balance available with the family members as on the date of search. The AO further observed that the assessee had made contradictory statements on two occasions i.e. on the date of search and seizure operation and during assessment proceedings. The assessee on the date of search ....
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....is not disputed and the same was available. However since the assessee has not furnished any details regarding the cash expenses incurred from 01.04.2017 1 10.08.2017 it cannot be ruled out that the family members of the assessee must have incurred certain cash expenses out of the cash in hand available as on 31.03.2017. * On the premise there are 8 adult and some children staying in the premise from where the cash was found, apart from the allowance of Rs. 4,80,000/-, another Rs. 10 Lakhs (Rs 25000 x 8 Per Month for five months) is treated as expenditure made from available cash in hand as on 31.03.2017 till the date of search. * Thus, total Rs. 10,00,000/- is estimated as cash expense by the ld. CIT(A) from 01.04.2017 till 10.08.2017 ....
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....dings in respect of family members of the appellant and no discrepancy in the statement of affairs was pointed out by the A.O in the block assessment proceedings of the family members. Copies of statement of affairs of the family members as on 31.03.2017 along with assessment order for A.Y. 2017-18 is being attached along with this letter at Page 1 to 28 to substantiate the fact that the A.O. did not draw any adverse inference in respect of cash in hand as on 31.03.2017 which was shown by family members in their respective statement of affairs as on 31.03.2017 and filed before the A.O. during the course of block assessment proceedings. The AO therefore was not justified in not accepting this submission of the appellant more so in view of th....
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....cash was kept at the office to meet petty expenses and when the same was finished it was recouped. * In view of the submissions made above, it is submitted that the addition of cash of Rs. 43,86,000/- has been explained u/s 69A is not justified since the complete reconciliation of cash of Rs. 48,66,000/- found during the search from the premises of the appellant is as under:- Cash belonging to the family members Rs. 39,70,141/- Cash in hand as per books of Easy Trip Planners Pvt. Ltd. Rs. 9,00,231/- Total Rs. 48,70,372/- * Since the cash found during the course of search is fully explained as given above, the addition of Rs. 43,86,000/- may kindly be deleted." 10. The ld. DR relied on the order of the ld. CIT(A). 11. Heard th....