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2015 (9) TMI 691 - AT - Income TaxAddition on account of cash found during the search - Held that:- As during first appellate proceedings, the AO admitted that the assessee had furnished confirmation during the course of assessment proceeding to the effect that the impugned amount of cash belonged to M/s MGF Development Ltd. and the AO also alleged that the confirmation has been furnished after more than two years of search, therefore, it appears to be an after thought which cannot be the basis for rejection of confirmation without any further examination and verification from the assessment records of M/s MGF Development Ltd. We also note that the DR has not disputed the point that the impugned amount was returned by the assessee to M/s MGF Development Ltd. on 15.9.2007 which is clearly reflected from the books of accounts of the assessee as well as cash in hand and assessee’s account in the books of M/s MGF Development Ltd. Under these circumstances, we reach to a conclusion that the assessee also explained the amount of cash found during the course of search that an amount of ₹ 33,90,450/- belonged to M/s MGF Development Ltd. which was returned in due course of business. Hence, we are inclined to hold that the authorities below were not justified in making and confirming the addition on this amount in the hands of the assessee. - Decided in favour of assessee.
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