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2011 (3) TMI 1627 - AT - Income TaxUnexplained Cash Credit u/s 68 - During search and seizure, AO observed that the assessee did not have the cash balance as claimed, cash has been introduced by the assessee only to explain the investment of expenses in the subsequent years - Addition was made HELD THAT:- It is admitted fact that the assessee is regularly filing his returns of income for the preceding assessment years and furnished documents in support of his claim that his income was assessed regularly in the earlier years. In the instant case nothing is brought on record to substantiate that any material was found during the course of search that the assessee either purchased assets or incurred expenses for the year under consideration. Even the AO 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 the above extent during the year under consideration, as the amount in question does not pertain to the year under consideration, therefore, it cannot be a subject matter of addition u/s. 68. The above view is fortified as per the ratio laid down by the Hon'ble Delhi High Court in the case of COMMISSIONER OF INCOME-TAX VERSUS USHA STUD AGRICULTURAL FARM LTD. [2008 (3) TMI 91 - DELHI HIGH COURT]. Considering the totality of the facts, we do not see any valid ground to interfere with the findings of the ld. CIT(A) - Decision in favour of Assessee. Assessment u/s 153A - Disallowance of Business Loss - AO disallowed the business loss on the ground that the final accounts of the business relating to assessee's proprietorship firm (M/s Arohi International) have not been filed by him HELD THAT:- In the instant case, the AO acknowledge in his assessment order that the assessee attached profit and loss account and balance sheet with the regular return of income, therefore, the AO was not justified in making the disallowance when the assessee had already disclosed the relevant documents in the original return of income, therefore, the AO could not have considered the impugned loss in the proceedings u/s. 153A, particularly when nothing contrary was unearthed during the course of search. We, therefore, considering the totality of the facts do not seen any merit in this ground - Decision in favour of Assesee.
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