TMI Blog2012 (7) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... avor of assessee Undisclosed income - addition on account of cash seized from the bank account of the assessee - assessee submitted that no cash was found or seized during the course of search – Held that:- Cash of Rs. 5 lacs was seized from bank account, which account was reflected in the books of accounts of the assessee and return filed before the date of search. Since the amount was disclosed in the books of account of the assessee, this could not be considered undisclosed income by any yardsticks – In favor of assessee assessee - IT(SS) A No.25/Del. /2012 - - - Dated:- 8-6-2012 - SHRI G.C. GUPTA, VP AND SHRI A.N. PAHUJA JJ. Assessee by Shri R.C. Rai, AR Revenue by Smt . Anuradha Misra,DR O R D E R A.N. PAHUJ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. On appeal, the ITAT set aside the issue relating to these two additions to the file of the Assessing Officer[AO in short] for a fresh decision in the light of order of the Settlement Commission in the case of Shri S.K. Jain, main person of the group, after verifying as to whether or not any search warrant was issued in the name of the assessee company. In terms of the directions of the ITAT, the assessee was given another opportunity through a detailed questionnaire. After considering the reply of the assessee and the order of the Settlement Commission in the case of Shri S.K. Jain, the AO added an amount of Rs.5 lacs on account of share application money given by the assessee to M/s Expo Globe India Pvt. Ltd. u/s 69 of the Act while rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been filed to substantiate the claim of appellant. The AR has cited the decision of Hon'ble Jurisdictional High Court of Delhi in the case of CIT vs. Kulwant Rai reported in (2007)291 ITR 36, on the issue of unsigned agreement document found and sized and addition was made by Ld. Assessing Officer, in which the Hon'ble High Court held that :- "Admittedly, the assessee had not signed the agreement in question and since he had not signed the agreement, no liability could be attributed qua that agreement towards him since he was not a party to the agreement till he had signed the agreement. The mere fact that this agreement was found in the possession of the assessee did not lead anywhere. Thus, the addition of 17,00,892 made by the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the ld. CIT(A) so as to enable us to take a different view in the matter. In these circumstances ,especially when there is no basis to interfere, we have no alternative but to reject ground no.1 in the appeal. 6.. Next ground no.2 in the appeal relates to another addition of Rs. 5 lacs on account of cash seized from the bank account of the assessee. During the course of assessment proceedings, the AO issued a questionnaire dated 22nd May,2007, seeking source of cash. In reply, the assessee submitted that no cash was found or seized during the course of search. However, an amount of Rs. 5 lacs was seized from bank account of the assessee with India Overseas Bank and the said bank account was reflected in the regular books of accounts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment or before me. In the circumstances the amount found and seized remains unexplained. Accordingly, same is added to the taxable income of the company. The basis taken for this addition does not appear to be on sound footing as the substantive addition earlier made in the hands of the principal party Sh. S.K. Jain has been considered and deleted by the Hon'ble Settlement Commission upon which the Hon'ble ITAT has remanded the matter back to the AO to reconsider the appellant's case in the light of the Hon'ble Settlement Commission's order after giving due opportunity to the appellant. However, plain reading of the AO's order does not reflect the ground on which this addition has been made in the face of the Hon'ble Settlement Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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