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2013 (11) TMI 1609 - ITAT LUCKNOWUnexplained/undisclosed cash found at the time of search - Held that:- Assessing Officer has himself admitted that the said amount was shown in the cash flow statement as opening balance so it cannot be said that the assessee earned income to that extent during the year under consideration. In the present case also, as per the cash flow statement submitted by the assessee for the present year as available on page 12 of the paper book, opening balance of cash in hand was ₹ 4.09 lacs and the closing balance is ₹ 4.39 lacs. This increase of ₹ 0.30 lacs is on account of cash withdrawn from bank ₹ 1.175 lacs and expenses and drawings of ₹ 0.87 lacs. Hence, it cannot be said that there is any increase in cash in hand in the present year which stands unexplained. Regarding this contention of the learned DR of the revenue that the cash flow statement was not filed with income tax return filed before the date of search, we find that there is no such requirement that the assessee must file cash flow statement, balance sheet or copy of capital account with the return of income. Hence, on this basis, no adverse inference can be drawn against the assessee. The A.O. could have asked the assessee to explain the opening cash as on 01.04.2003 ₹ 4.60 lacs and if he could find that the assessee is not able to explain this opening cash on 01.04.2003, addition could have been made in A. Y. 2003 – 04 when the assessee is showing the cash for the first time but is not able to explain. The A.O. can do so now also if the law permits but in the present year, the addition made by him cannot be sustained in the facts of the present case. We delete the same. - Decided in favour of assessee
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