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2017 (3) TMI 112 - HC - Income TaxUnexplained cash - cash seized during the course of search - Held that:- It is not in dispute that at the time of search, a sum of ₹ 2,89,000/- cash was in possession of the assessee, out of which ₹ 2,50,000/- was seized. Assessee is owning 4½ acres of agricultural land in HUF capacity and in the said account, book cash of ₹ 4,16,092/- has been reflected and this was also with the assessee. It was also noticed by CIT (Appeals) that an agreement to sell had been entered into by assessee and had received back ₹ 1,80,000/- as refund since said deal did not materialise or sale did not take place. Hence, CIT (Appeals) concluded that as on 25.03.2008 assessee possessed cash balance as per book a sum of ₹ 2,96,092/- and in that background, addition of ₹ 2,89,000/- came to be deleted. Since it was notice d after verification of books of account maintained by assessee that assessee had sufficient cash on hand, deletion made by CIT (Appeals) came to be affirmed by ITAT. Addition towards afforestation charges - Held that:- It came to be held by both the appellate authorities that though expenditure is financed by Sri Goutam Chand of M/s. Rajashree Minerals who had taken a mine on lease from assessee, they were recoverable from the assessee and their accounts also disclosed the same. In view of the fact that none of the parties other than the assessee has claimed said amount as expenditure and this aspect having not been questioned by the revenue, appeal of the revenue rightly came to be dismissed by the Tribunal. On appreciation of entire material on record, as noticed herein above, Tribunal has rejected the claim of the revenue and has affirmed the order passed by CIT (Appeals).
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