9911796707
TMI Blog2014 (4) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... ined income in the hands of the assessee. 3. Facts relating to the issue are stated in brief. The assessee was subjected to search and seizure operation on 20.08.2009. During the course of search, cash balance of Rs.6,31,100/- was found at the residence of the assessee. In the preliminary statement taken at the time of commencement of the search, the assessee had stated that a cash balance of less than Rs. 1 lakh will be available at his residence. Though the assessee explained before the A.O., during the course of assessment proceedings, that the above said cash balance of Rs.6,31,100/- related to the cash withdrawn by him from his bank account on 17.08.2009, yet the A.O. did not accept the said explanation on the reasoning that the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d cash found at residence, it may be noted that surmises and conjectures on the cash found at the time of search cannot be accepted. Accordingly, the addition made of Rs.6,31,100/- is sustained." Aggrieved by the order passed by Ld CIT(A), the assessee has filed this appeal before us. 5. We have heard the rival contentions and perused the record. The Ld D.R placed strong reliance on the order passed by Ld CIT(A) and submitted that the assessee has failed to show the nexus between the cash withdrawal made from the bank and the cash found at his residence at the time of search and further the explanation of the assessee is in contradiction with the preliminary statement given at the time of commencement of search. On the contrary, the Ld A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by Ld CIT(A) that the first appellate authority is only talking about the possibility of the amount being spent away on the reasoning that the assessee is in building development business and hence he would not keep the money idle. It is a fact that the view expressed by Ld CIT(A) is only based on presumptions and not based on any material. The AO has also expressed the view that the assessee has failed to establish the nexus between the cash withdrawal and the cash found at his residence. But the fact remains that the time gap between the cash withdrawal and the date of search was only two full days and hence, in our view, it may not be correct to reject the explanations furnished by the assessee without bringing any material on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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