2023 (9) TMI 546 - ITAT DELHI

Addition u/s 68 - large cash withdrawal by the assessee immediately before the search and seizure operation - CIT(A) out of total cash seized during the course of search allowed part relief keeping in view amount of cash withdrawals by the assessee - HELD THAT:- When the assessee has huge cash withdrawals immediately before the date of search and in the second part of his statement, recorded during the course of search, replying to question no.24, he categorically stated that the cash withdrawals from the bank as well as from contract cash was available with him and out of said cash amount, there was renovation work was going on in his factory building at Madanpur Road.

In our considered opinion, during search and seizure operation, the cash amount was found and seized on 22.01.2018 and immediately before preceding month of December, 2017 there were withdrawals as cash by the assessee, which is much higher than the cash amount seized during the course of search. Therefore, no addition could have been made in the hands of the assessee u/s 68 of the Act. Accordingly, sole grievance of the assessee is allowed and AO is directed to delete the addition. Appeal of assessee is allowed.