2023 (10) TMI 1018

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....e case and in law the Ld. CIT(A) grossly erred in sustaining the addition of Rs. 52,02,500/ - made u/ s. 69A of the Income Tax Act (hereafter 'the Act') by the ld. AO vide the assessment order dated 16.06.2021 failing to appreciate that the Assessment order is ex facie illegal and arbitrary since the same was passed without appreciating the documents and explanations furnished by the Appellant during the course of assessment. 2. That on the facts and circumstances of the case and in law the ld. CIT(A) erred in sustaining the addition of Rs. 24,71,352/ - made by the ld. AO u/ s 69A of the Act failing to appreciate that the: same was not unaccounted money of the Appellant but was proceeds of cash sales and bank withdrawals of the so....

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....ns and the remaining cash of Rs. 28,00,000/- was from trading of kirana items by Narender Kumar Gupta and Sons HUF. AO was not convinced with this explanation. He rejected the cash found said to be from Nelly Creation. He also rejected the claim of Rs. 28,00,000/- from trading of kirana items by Narender Kumar Gupta and Sons HUF. 4. Against the above order, assessee appealed before the ld. CIT (A). Ld. CIT (A), as regards the cash from Narender Kumar Gupta and Sons HUF, rejected the same on the ground that return filed u/s 44AD was an after-thought. He also took adverse inference that books and vouchers were not produced. Hence, he rejected the assessee's plea in this regard. Therefore, he rejected the amount of Rs. 27,30,648/- out of cash....

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....een spent. As per the cash book maintained by the assessee, a sum of Rs. 10,000 was being spent for household expenses every month and the assessee has withdrawn from bank a sum of Rs. 2 lakhs on December 4, 2000 and there was no material with the Department that this money was not available with the assessee. It has been held by the Tribunal that in the instant case the withdrawals shown by the assessee are far in excess of the cash found during the course of search proceedings. No material has been relied upon by the Assessing Officer or the Commissioner of Income-tax (Appeals) to support their view that the entire cash withdrawals must have been spent by the assessee and accordingly, the Tribunal rightly held that the assessment of Rs. 2....