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2023 (2) TMI 593 - ITAT VISAKHAPATNAMAssessment u/s 153C - pen drive was found and seized by the search team - unaccounted cash transactions made - CIT- A deleted addition - AY: 2014-15 - HELD THAT:- It is an admitted fact that no corroborative evidence was traced from the premises of the assessee during the search operations in the assessee’s own premises - loan was taken by way of RTGS and repaid by way of RTGS was evidenced from the paper book submitted before us. Further, there is also merit in the argument of the Ld. AR that when the cash balance of Rs. 2.50 Crs was available with the assessee, why a loan was taken from M/s. Polisetty Somasundaram by M/s. Durga Marketing Corporation where the assessee is a partner deserves consideration. As held by CIT from the statement of Polisetty Somasundaram conflicting versions are noticed wherein initially it was said that the transactions in the pen drive represent their unaccounted income and later it was stated that the impugned sums were received as security deposit for the loan given to Durga Marketing Corporation. From the material facts of the case there is no merit for the addition made by the AO. Considering the above facts and circumstances and judicial pronouncements the addition is not sustainable and hence deleted - CIT(A) has rightly considered the facts and adjudicated the grounds on merits - Decided against revenue. Addition of interest payment in cash - AY: 2015-16 - HELD THAT:- We find that in the impugned assessment year 2015-16, the Ld. CIT (A) has consistently allowed the appeal of the assessee on the protective additions made by the Ld. AO with respect to the receipt of cash by the assessee in the absence of any corroborative evidence found against the assessee during the search operations in the assessee’s premises - CIT(A) has directed the Ld. AO to delete the addition of interest payment in cash based on the relief allowed in deleting the addition of cash for Rs. 2.50 Crs. We are of the considered view that the Ld. CIT(A) has rightly deleted the additions in the impugned assessment year also and we do not find any reason to interfere in the decision of the Ld. CIT(A) - Dismiss the appeal of the Revenue.
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