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2021 (3) TMI 1112 - AT - Income TaxUndisclosed income - as during the course of search cash sum was found and assessee failed to explain its source and accepted to offer it as additional income - HELD THAT:- As we find that the assessee had made retraction before the completion of assessment proceedings with documentary evidence and relevant explanation and therefore the onus to prove the burden shifted on to the revenue. The assessee during the assessment proceedings also submitted the details of cash in hand as on 31.3.2016 in the hands of the firm M/s Daya Properties & Finance, its partners and wife of the partner. Income Tax Returns of the firm M/s Daya Properties & Finance and other individuals for Assessment Year 2016-17 were very much before the Ld. A.O. They have been scrutinized during the assessment proceedings and the assessment was completed u/s 143(3) of the Act and no addition have been made. If the Ld. A.O was not satisfied with the cash in hand shown by the assessee and individuals as on 31.3.2016 he should have taken necessary action during Assessment Year 2016-17 but in absence there of it has to be presumed that the Ld. A.O has accepted the position of cash in hand as on 31.3.2016 shown by the assessee firm and its partners and wife of the partner which stood. So as on 1.4.2016 assessee had cash in hand in its business concern and other individuals referred above at ₹ 16,50,360/- which is sufficient enough to cover up the shortfall in surrender of income of ₹ 15,02,020/- found during the course of search as on 30.8.2016. Since the assessee had explained the source of cash to the extent of ₹ 15,02,020/- as on the date of search, it had rightly reduced the surrender of income from ₹ 37,02,020/- to ₹ 22,00,000/-. We therefore are of the view that the Ld. A.O was not justified in making the addition of ₹ 15,02,020/-. We accordingly set aside the finding of Ld. CIT(A) and allow Ground No. 1 to 4 raised by the assessee.
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