2024 (7) TMI 436

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....sustaining the addition of Rs. 22,89,925/- out of Rs. 27,74,000/- being cash found during the search on 13.07.2019 as unexplained money u/s. 69A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). 3. The brief facts are that, the assessee is an agriculturist and doing business of real estate cum builders. In connection with the by-election to the Vellore Parliamentary constituency, checking was conducted on 13.07.2019 by the flying squad team, during which cash of Rs. 27,74,000/- was found in the residence of the assessee, for which the assessee could not explain source for the same. Subsequently, a summons u/s. 131 of the Act was issued to the assessee. During the course of examination, the assessee claimed that the amou....

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....CIT(A). 5. The ld.CIT(A) acknowledged that the assessee had furnished the details of cash flow statements of himself, (G. Elumalai), Elumalai HUF, E. Babu (son) and E. Janaki Ammal (wife), in support of the cash found at Rs. 27,74,000/- on the date of search. On perusal of documents and statements including cash flow statement by the assessee, the ld.CIT(A) has accepted Rs. 4,84,075/- as cash on hand available as on 13.07.2019 (date of seizure) and reduced the addition made u/s. 69A of the Act by the Assessing Officer to Rs. 22,89,925/- by giving a deduction of Rs. 4,84,075/- as explained money and passed an order on 18.12.2023. Aggrieved by the impugned order of the ld.CIT(A), the assessee is before us. 6. The Ld. Counsel for the ass....

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....e fy 18-19 1.4.19 to 30.6.19 2,64,000 66,000   1,20,000 30,000 2,94,000 73,500 6,78,000 1,69,500 Agricultural income Last year Current year 10,000 10,000 3,00,000 1,00,000 2,40,000 75,000 3,20,000 1,20,000 8,70,000 3,05,000 Cost of properties sold 4,86,045 3,28,090 23,98,779 2,64,320 34,77,234 Receipt from firm     2,65,125   2,65,125 Gift       7,02,000 7,02,000 Decrease in bank balance SB interest   5,24,294 89,948 1,49,813 47,479 6,74,107 1,37,427 TOTAL 15,70,517 15,71,817 36,19,638 22,33,181 89,95,153-A Less :     &nbsp....

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....relying on the decision of the ld.CIT(A)/AO submitted that the ld.CIT(A) has already given relief of Rs. 4,84,075/- and therefore, the balance addition should be sustained. 10. We have gone through the facts and circumstances of the case and perused the material. We note that the assessee claims himself to be an agriculturalist and doing business of real estate/builder and during the by-election to the Vellore Parliamentary Constituency, the flying squad found that the assessee was having cash of Rs. 27,74,000/- in his possession/residence. Later on, the Assessing Officer asked the assessee to prove the nature and source of the amount seized and according to the Assessing Officer, the assessee failed to prove the same and therefore, he m....