TMI Blog2023 (2) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... out. However, the assessee has not provided details of such expenses. This is a strange observation and ld. CIT (A) has on ad hoc basis held that on some non-cash expenses, 1/3rd of the expenses calculated by AO in this regard i.e. Rs.5,21,650/- (1/3rd of Rs.15,64,650/-) is allowed. This is solely on the basis of surmises and conjectures. The estimate of cash under the presumptive regime by the AO as well as CIT (A) is flawed. The same is based on surmises and conjectures and the same is not sustainable on merits also. So, to conclude, this estimate of cash in order passed u/s 154 is jurisdictionally not permissible and secondly, on merits also, we note that the addition is based on surmises and conjectures which cannot be sustained.Appeal filed by the assessee stands allowed. - ITA No. 575/Del./2022 - - - Dated:- 13-2-2023 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER And MS. ASTHA CHANDRA , JUDICIAL MEMBER FOR THE ASSESSEE : SHRI DIVYANSH JAIN , ADVOCATE FOR THE REVENUE : MS. PRINCY SINGLA , SENIOR DR ORDER PER SHAMIM YAHYA , ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of ld. CIT (Appeals)-27, New Delhi dated 31.01.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om medical professionals under head 'Income from business or profession' and 'Income from other source'. The case is heard and discussed with the Ld. A/R. After discussion, the total income of the assessee for the A.Y. 2018-19 is computed as under:- Returned Income : Rs. 46,21,330/- Assessed income : Rs. 46,21,330/- Assessed u/s. 153A/143(3) of the I.T. Act, 1961. Calculate tax and charge interest as per law. Give credit for prepaid taxes. Copy of the order and demand notice are being issued to the assessee. This order has been passed with the prior approval of the Addl.CIT, Central Range 5, New Delhi vide his approval letter No.Addl.CIT/CR-5,Approval 153-D/2019-20/2016 dated 29.12.2019. Thereafter, the AO passed a rectification order u/s 154 of the Act. In this, inter alia, the issue of addition on account of unaccounted cash found was dealt with by the AO in the order u/s 154 as under :- Addition on account of Unaccounted cash found- 1. 1. A Search/seizure operations were carried out at the residence of Pawan Raj Goyal on 06.02.2018 and search action was also conducted at locker no. 830, HDFC Bank, Gurgaon on 31/03/2018. Du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not incurred. Therefore, total available cash in hand comes out to be Rs.11,04,650/- (31,29,300 - 15,64,650 - 60,000 - 4,00,000). Therefore, excess cash found of Rs.19,82,276/- (i.e. Rs.30,86,926/- Less Rs.11,04,6501-) cannot be justified with the cash available with the assessee even after declaring professional receipts. 1. 1. Balance cash amounting to Rs.2,55,170/- is accepted being part of pin money of house wife and out of savings accumulated over the years. 1. 1. In view of the above, the cash found amounting to Rs.19,82,276/- is treated as unaccounted cast) which remain unexplained and added to the income of the assessee as per the provisions of section 69A of the Income Tax Act, 1961. The same is to be taxed @ 60% u/s 115BBE of the Income Tax Act. 4. Assessee appealed before the ld. CIT (A) challenging the addition made on account of jewellery as well as cash of Rs.19,82,276/- u/s 69A of the Act. Ld. CIT (A) noted that before him, it was stated that provisional receipt of Rs.31,29,300/- is duly substantiated from the documents seized during the course of search. He noted that assessee has stated that AO has erred in determining the cash-in-hand due to fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly, Rs.4,00,000/- which was deposited into the Bank ale after the date of search is also deleted. 6.6.3 Claim of the appellant in respect of non cash expenses can be ruled out. However, the appellant has not provided details of such expenses. Still keeping in mind that there would have been some non cash expenses also, one third of expenses calculated by AO i.e. Rs.5,21,650/- (one third of Rs.15,64,650) is allowed. 6.7 Now the availability of cash in the hands of the appellant is calculated as under: Head Amount (in Rs. Professional receipts as declared in return of Income 31,29,300 Less: 50% of expenditure as return was filled by invoking provisions of 44AD of the IT Act, 1961 15,64,650 Add : Non cash expenses as discussed in para 6.6.3 5,21,650 Total availability of cash 20,86,300 6.8 Therefore, addition on account of unexplained cash u/s 69A of the IT Act, 1961 found during the course of search and seizure operation is restricted to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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