TaxTMI 
TaxTMI 
2023 (2) TMI 1272
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....sing out of the order passed u/s. 153A r.w.s 143(3) of the Act for the AY 2018-19. 2. Briefly stated facts of the case are that the assessee is an individual engaged in the business of Prawn commission and Fish culture and is a partner in M/s. Dhanlakshmi Rice & Flour Mill and M/s. Yerrayya Raw and Boiled Rice Mill. The assessee filed his return of his return of income admitted a total income of Rs. 3,10,000/- for the AY 2018-19 on 22/10/2018. Initially, the return was processed u/s. 143(1) of the Act. A search and seizure operation u/s. 132 of the Act was conducted on 2/11/2017 in the case of the assessee at his residential premises. A search warrant was executed in the name of the assessee and various incriminating material was found a....
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....ned income of Rs. 3,10,000/-. In the assessment the Ld.AO also determined the agricultural income of the assessee at Rs. 4,47,592/- and brought to tax. Aggrieved by the order of the Ld. AO, the assessee is in appeal before the Ld.CIT (A). Before the Ld. CIT(A), the assessee has file written submissions through online. On appeal, the Ld. CIT(A) considered the written submissions made by the assessee and granted part relief to the assessee with respect to the addition of Rs. 25,22,000/- on account of unexplained investments in personal jewellery and confirmed the addition of deficit cash amounting to Rs. 78,163/- made u/s. 69 r.w.s 115BBE of the Act as well as the addition of Rs. 58,26,321/- made towards disallowance of cash expenditure beyon....
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....on taken by them. 5. We have heard both the sides and perused the material available on record and the orders of the Ld. Revenue Authorities. Before us, it is submission of the Ld. AR that since the payments were made during the bank holidays as well as neither the assessee nor the payees had bank accounts, the provisions of section 40A(3) of the Act does not attract to the payments made by the assessee. The Ld. AR also referred to Rule 6DD(j) of the Act which reads as under: "Rule 6DD: No disallowance under sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where a payment or aggregate of payments made to a perso....
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....ovisions of the section 40A(3) of the Act and hence the Ld. AO is hereby directed to delete the addition to this extent. It is ordered accordingly. Thus, this ground raised by the assessee is partly allowed. 8. The other issue involved in this appeal is with respect to addition of Rs. 78,163/- on account of deficit cash. It is the case of the Ld. AO that as per the books of account the total cash balance should be Rs. 1,02,886/- in the hands of the assessee against the cash found of Rs. 24,723/- and the assessee did not offer any explanation before Ld. AO. On appeal, the Ld. CIT(A) confirmed the addition made by the Ld. AO. Before us, the Ld. AR submitted that the disputed sum was utilized by the assessee for urgent personal needs and ex....