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2023 (10) TMI 200 - AT - Income TaxCash found in search action - Managing Partner admitted total cash seized by the police as income of the assessee, and agreed to pay tax on it - retraction of disclosure of unaccounted cash seized , as was done by the assessee after 21 months - HELD THAT:- It is clear beyond doubt that the cash surrendered by the assessee is an unexplained money found in the possession of the assessee and the assessee has not offered any satisfactory source and nature of acquisition of the said money, thus, the AO has rightly invoked provisions of Section 69A. Further, the assessee surrendered an amount on 09.04.2005 , while the Police search took place on 26.03.2005, and there was a sufficient gap of 14 days, and it cannot be said that the assessee has given statement offering to tax an amount out of cash seized , being under mental tension or scared, as there was sufficient 14 days time available with the assessee to bring down mental tension as well to seek necessary legal assistance. Further, by surrendering the aforesaid amount and offering to pay tax, the assessee has prevented further enquiries by the department , obviously because it could have led to further revelations / unraveling of truth as to the persons who are also implicit with assessee in transporting of cash as well other transactions undertaken by the assessee in the past. The assessee retracted its own statement firstly by filing income tax return on 31.08.2015 wherein Rs. 49,00,000/- was not included as income and was not offered for tax, while Rs. 21,10,000/- being the remaining amount out of surrendered amount of Rs. 70,10,000/- was offered for tax while filing return of income. The assessee during the course of assessment before the AO, on 15.12.2017, also retracted from the aforesaid surrendered amount of Rs. 49,00,000/-. Thus, the retraction by the assessee of the aforesaid surrendered amount of Rs. 49,00,000/- does not inspire confidence, and was rightly confirmed by ld. CIT(A). So far as deletion of income of Rs. 21,10,000/- by ld. CIT(A) is concerned, it was rightly done by ld. CIT(A) as the same was duly added by the assessee voluntarily in its return of income filed with department, which was erroneously added by the AO again leading to double addition. Decided against assessee.
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