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2017 (8) TMI 528 - AT - Income TaxAddition found in entries found in a seized document - presumption placed on the seized documents u/s 132(4A) - cash found during the search - such cash belongs to assessee as personal cash or belongs to the company - Held that:- Some figures have been noted in a columnar form. It is not clear as to whether they pertained to “receipt” or “payment”. The AO also could not bring any material on record to understand the meaning and nature of entries. Hence, in the absence of any other corroborative material, we are of the view that the said document should only be construed as dumb document. We also find no reason for extrapolating the figures into lakhs. Hence the addition made by the AO has to be taken as an addition made on surmises and conjectures, which is liable to be deleted. The assessee has also given copy of cash ledger of M/s Flemingo Duty free shop. A careful perusal of the same would show that the same records cash transactions of all the shops located in various airports like Kolkatta, Chennai, Trichy etc., meaning thereby, it does not pertain to Bombay branch alone. Normally the director should be keeping the cash balance of Bombay branch only for safe custody purpose. The said cash book shows cash balance of ₹ 4.36 lakhs as on 31.10.2009, but the same represents cash balance available as at the close of business on that date. Hence it is not clear that the above said cash balance pertains to Bombay branch alone or it was a combined cash balance of all branches. Hence we are of the view that claim of the assessee that the entire cash balance of the business concern was available with him is hard to believe. Accordingly we are of the view that the credit for entire cash balance cannot be given. The possibility of keeping some portion of cash belonging to Bombay branch cannot be ruled out. Accordingly we are of the view that an adhoc sum of ₹ 1.00 lakh can be given credit and the same would meet the ends of justice. - Appeal of the assessee is partly allowed.
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