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TMI Blog2014 (2) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... plained credits of interest accrued. 2. That on the facts and circumstances of the case as well as in law, the Ld CIT(A) erred in deleting the addition of Rs. 3,62,155/- made by the A.O. as unexplained opening cash balance, as income from undisclosed sources. 3. The appellant craves to be allowed to add, delete or amend any other grounds of appeal." 3. Apropos deletion of addition of Rs. 5,48,900/- made u/s 68 of the Income Tax Act, 1961 (hereinafter „the Act?) by the Assessing Officer on account of unexplained credits of interest accrued. 4. Brief facts of the case are as follows. A search operation was conducted at the premises of the assessee on 28.07.2006. In the course of search cash amounting to Rs. 5,89,000/- was found, out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the credit balance of Rs. 25,56,316/- as on 31.03.2001. The interest up to this period accruing to the assessee amounted to Rs. 5,48,900/- and since the incriminating paper was found from the premises of the assessee, the same has to be taken to be correct in terms of its contents as per provision contained in section 132(4A) of the Act. Therefore, according to the ld DR the ld CIT(A) erred in accepting the argument of the assessee that the Assessing Officer has not established that interest of Rs. 5,48,900/- had accrued to the assessee. 7. The ld AR on the other hand stated that the department?s search and seizure operation u/s 132 of the Act was carried on 28.07.2006 at the residents of the assessee and the assessee had properly compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submitted that for taxing the amount u/s 68 it is mandatory that the amount should have been credited in the books of accounts maintained by the assessee but no such entry was found by the Assessing Officer in the books of accounts of the assessee; therefore, section 68 cannot be invoked. Further it was contended that the Assessing Officer before invoking the power u/s 68 must satisfy that there are books of accounts maintained by the assessee and the cash credit is recorded in the said books of accounts. The existence of books of accounts is essential for invoking of the power u/s 68 of the Act and he relied, on the decision in Smt. Shanti Devi Vs. CIT (171 ITR 532) Punj. & Har) wherein, the Hon?ble High court held that in relatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at the time of search was not at all relating to the assessee and secondly, the amount was not found in the books of account of the assessee and it was simply a piece of paper with jottings thereon. The assessee also denies the hand writing on the paper as his or that of any of his family members and also raised suspicion that the paper in question might have been left by somebody at his premises and pleads that the said liability should not have been fastened on him by the AO, however the CIT(A) has appreciated the facts and circumstances of the case and rightly deleted the same and the said order need not be interfered with. 8. We have heard the rival submission of both the parties and perused the records and has gone through the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89,000/- was found, out of which a amount of Rs. 5,60,000 was seized. Certain documents regarding sale of immovable property and accrual of interest were also found. Therefore, a notice u/s 153 A of the Act was issued. The assessee filed Nil return on 25.08.2008. In respect to cash, a cash flow statement was filed by the assessee reflecting closing cash at hand as on 31.03.2000 as Rs. 3,62,155/-. This amount was taken as opening cash at hand for this relevant assessment year. The Assessing Officer disbelieved the said statement and therefore the amount was treated as income and addition was made according to the income of the assessee. 13. Aggrieved by the said addition the assessee preferred an appeal before the ld CIT(A) who by the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any further clarification in view of the fact that the same was accepted by the Assessing Officer in the Assessment Year 2000-01. Ld AR further submitted that the appellant had cash in hand of Rs. 3,62,155/- on 31.03.2000 as per cash flow statement, which was carried forward as opening balance on 01.04.2000. However, the Assessing Officer treated the said amount of opening balance of Rs. 3,62,155/- as income from undisclosed source in spite of the fact that Assessing Officer has assessed the assessee for the Assessment Year 2000-01. The ld AR explained that the cash balance of Rs. 3,62,155/- as on 31.03.2000 was the resultant figure of the past savings, earnings and gifts etc. According to the ld AR the Assessing Officer for the year 2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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