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2023 (11) TMI 1044 - ITAT CHENNAIUnexplained investment u/s. 69 - addition was made on the basis of seized material found during the course of search action on the assessee - loose sheet, inter-alia, contain Balance Sheet - As per AO assessee has not furnished the details of creditors, such as names, addresses, PANs, I.T. particulars, confirmation letters of the creditors, mode of receipt of the amounts, creditworthiness of the creditors in respect of the credit nor the basis for capital balance - CIT(A) deleted addition - HELD THAT:- As on the date of search, certain loose sheets were found which contained date wise Balance Sheet of the assessee. The assessee has not maintained any regular books of accounts and dealing as a trader of foreign currency. The loose sheet, inter-alia, contain Balance Sheet as on 03-05-2016. However, Balance Sheet as on 11-05-2016 i.e., a day prior to date of search was also available on record which has totally been ignored by Ld. AO. It could be seen that the Balance Sheet is prepared day wise considering the transaction of the each of the day. Therefore, the most relevant Balance Sheet, in our considered opinion, would be the Balance Sheet as available on latest date i.e., on 11-05-2016. CIT-DR has argued that there is not substantial difference in the Balance Sheet. Even if the said argument is accepted, we find that AO is only accepting a part of the Balance Sheet and putting onus on assessee to substantiate the other part of the Balance Sheet. The liability side of the Balance Sheet contains the capital account of the assessee and details of sundry creditors which constitute source of sundry debtors, stock and cash in hand. A presumption would arise that the documents belong to the assessee and the entries made therein are correct and true. Therefore, the assessee could not be obligated to substantiate only one part of the Balance Sheet while accepting the other part of the Balance Sheet which is favorable to the department. The approach of Ld. AO, in this regard, is clearly erroneous and the same could not be held to be justified. We concur with the aforesaid adjudication of Ld. CIT(A) in the impugned order. Considering the Balance Sheet as a whole, the impugned addition is not sustainable in law. Also we find that the adjudication of CIT(A) is based on appreciation of correct factual matrix. The latest Balance Sheet as seized by the department has been compared with the Balance Sheet prepared till the date of search and discrepancy in the capital account has already been added to the income of the assessee. The estimated income for post search period has also been added. Therefore, whatever addition was required to be made, has already been made in the impugned order. Nothing more is required to be added. Decided against revenue.
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