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2016 (1) TMI 1029 - AT - Income TaxUnexplained money - Addition as income from other sources - Held that:- Section 69A is applicable where the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, and the assessee offers no explanation about the nature and source of acquisition, or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer, then the money and the value of the bullion, jewellery Or other valuable article may be deemed to be the income of the assessee for such financial year. For this section to come into operation, the assessee must be found to be the owner of any money, bullion, jewellery or other valuable article. The terms money, bullion, jewellery or other valuable article signify concrete things and do not mean amounts recorded in books of account or documents. Therefore, in such cases where unaccounted entries are found recorded in the books or documents seized, section 69A cannot be invoked. This provision can be invoked only when unaccounted cash, bullion, jewellery or any other valuable article or thing is found during search or otherwise. We find that it is not the case of A.O. that the assessee has not offered any explanation. It is also not the case of A.O. that explanation offered by him with "regard to source and acquisition of money is not satisfactory. The nature of receipt is business income being advance against sales and source of receipt is the respective customers. The A.O. is very much satisfied with the nature and source of amount. Infact the nature and source of the unaccounted receipts is self-established from the seized material itself. Thus, the nature and source stands duly explained. Therefore, there is no applicability of provision of section 69A of the Act. We are of the view that the Income is different from "receipt". Even when the receipt is unaccounted, it is only the income which is taxable and income has to be computed in accordance with the provision of Act and in accordance with the method of accounting regularly followed by assessee. The assessee has been following the percentage of completion method regularly since inception. The A.O. has duly accepted the method even in assessment done u/s 153A. It is a settled law that once the method followed by assessee has been accepted, the income has to be computed in accordance with that regularly followed method. Therefore, it was not appropriate for the revenue to invoke section 69A to charge the amount to tax. Keeping in view of the facts and circumstances explained above, we are of the view that AO has wrongly made the addition in dispute and similarly, Ld.CIT(A) has also wrongly confirmed the same without going through the facts and circumstances of the case of assessee. Therefore, we are unable to upheld the impugned order and, hence, cancel the impugned order by deleting the addition in dispute. Accordingly, we delete the addition - Decided in favour of assessee
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