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2016 (7) TMI 391 - ITAT MUMBAIUndisclosed/unexplained cash u/s 69A - assessee has chosen a particular manner to declare such income in its books of account by incorporating it as net proceeds of the activity of sale of agricultural produce - Held that:- There is no material found in search or otherwise to show that assessee has carried out any agricultural activity. Ostensibly, the assessee claims that the said net amount of ₹ 83,00,000/- represents unexplained cash seized during the course of search. The notes of account, which we reproduced above, if considered in totality, supports the stand of the assessee that apart from the amount of ₹ 83,00,000/-, there is no further requirement of the assessee to declare income corresponding to the unexplained cash found during the search. If the stand of the Revenue was to be approved, then, it would be imperative to establish that assessee had earned ₹ 83,00,000/- over and above the unexplained cash found during the course of search. For that matter, there is no material or evidence on record which could show that other than the cash seized of ₹ 83,00,000/-, there was any other unexplained income to that extent. Though the manner in which assessee-company has offered the unexplained cash of ₹ 83,00,000/- to tax in the return of income is not in the best of the terms, yet it cannot be negated by merely cherry-picking the facts. In fact, the notes of account has to be understood in toto and, accordingly there cannot be any doubt that the sum of ₹ 83,00,000/- declared in the return of income corresponded to the amount of cash seized during the search operation. Therefore, in our view, the lower authorities fell in error in making a further addition of ₹ 83,00,000/- by invoking Sec. 69A of the Act on account of unexplained/undisclosed cash found during the search. - Decided in favour of assessee
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