TaxTMI 
TaxTMI 
2014 (8) TMI 1259
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....rs 2010-11 vide his order dated 28.12.2011. 2. The only issue in this appeal of revenue is against the order of CIT(A) deleting the addition of Rs. 29,55,000/-. The CIT(A) restricted the addition at Rs. 36.50 lacs as against the addition made by AO at Rs. 66,05,000/- u/s. 69C of the Act in respect to undisclosed cash payments. 3. We have heard rival submissions and gone through facts and circumstances of the case. The AO made addition of Rs. 66,05,000/- in respect to cash payment made by the assessee. The facts of the case are that search operation u/s. 132 of the Act was conducted in the cases of Fortune Ispat Group cases on 16.02.2010 and during the course of search at the office premises of Fortune Ispat Pvt. Ltd. at 8C, M. D. Road....
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....of cash and he made addition of further Rs .36,05,000/- apart from the amount disclosed before the DDIT (Inv,) and included in the returned income at Rs. 30 lacs. Thereby, the AO assessed the entire amount found in the seized documents at Rs. 66,05,000/-. Aggrieved, assessee preferred appeal before CIT(A, who after considering the submission of the assessee deleted the addition vide para 5 as under: "5. I have considered the submission of the appellant and perused the assessment order. I have also gone through the seized papers under reference as well as the assessment order passed by the same AO in the case of Sajjan Kumar Patwari (HUF) for A.Y 2010- 11. The facts of the case have already been discussed above that search action wa....
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....e of assessment proceedings the appellant increased the income at Rs. 36,50,000/- on the basis of peak cash balance. However, the AO treated the entire amount of purchases of Rs. 66,05,000/- as unexplained expenditure u/s. 69C of the Act for the reason that the appellant did not produced evidence of sales. On careful consideration of the facts, I am of the opinion that the AO was not justified in treating the entire amount of purchase as unexplained expenditure for the reason that the appellant did not produce the evidence of sale or he did not explain the source of payment. There is no dispute that the purchases of Rs. 66,05,000/- and Profit earned on sale of such purchased material was not recorded in the books of account. As per seized p....
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....ry material on record. The AO has brought no such material on record. In view of above, I am of the opinion that the AO was not justified in making addition of Rs. 66,05,000/- i.e. the amount offered by the appellant at the time of assessment proceedings. The ground nos. 1 and 2 are allowed." Aggrieved, revenue came in appeal before us. 4. We find that the payments on various dates as found in F1/Office-6 and F1/Office-7 is as under: "Date Payments (In Rs.) 12 - Jan - 10 8,00,000 15 - Jan - 10 8,50,000 15 - Jan _ 10 10,00,000 16 - Jan - 10 3,25,000 16 - Jan - 10 2,70,000 19 - Jan - 10 13,85,000 22 - Jan - 10 1,25,000 25 - Jan - 10 9,50,000 29 - Jan - 10 6,00,000 30 - Jan -....