TMI Blog2015 (9) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... he point that the impugned amount was returned by the assessee to M/s MGF Development Ltd. on 15.9.2007 which is clearly reflected from the books of accounts of the assessee as well as cash in hand and assessee’s account in the books of M/s MGF Development Ltd. Under these circumstances, we reach to a conclusion that the assessee also explained the amount of cash found during the course of search that an amount of ₹ 33,90,450/- belonged to M/s MGF Development Ltd. which was returned in due course of business. Hence, we are inclined to hold that the authorities below were not justified in making and confirming the addition on this amount in the hands of the assessee. - Decided in favour of assessee. - I.T.A. No. 4602/Del/2011 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see filed a return for the year under consideration on 29.9.2008 declaring an income of ₹ 68,21,192/- showing income from business and profession. Notices u/s 143(2) and 142(1) along with a questionnaire were served on the assessee. The AO noticed that during the search and seizure operation, cash amounting to ₹ 48,46,130 was found from the office premises of the company. The assessee was asked to justify the cash found in its premises by showing cash in hand in the books. The AO further observed that the books produced in support of the same were not reflecting cash in hand of ₹ 48,00,000/- despite the fact that assessee was given sufficient opportunity to explain the existence of above cash in its premises as per the boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Ld. Counsel of the assessee has also drawn our attention towards paper book page no. 3 para 5 and submitted that the assessee also submitted during the assessment proceedings that the cash balance of ₹ 33,90,550 belonged to MGF Developers Ltd. as the said cash of the company was found lying in the premises of the assessee company on the date of search as the same was given to the assessee company as imprest amount for business purposes. This letter is dated 15.12.09. Ld. Counsel for the assessee has also drawn our attention towards paper book page no. 31 and submitted that as per cash in hand account of M/s MGF Developers Ltd., there was an entry of payment to the assessee on 8.9.2007 which clearly reflects that the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. 15.2.2007. Ld. Counsel submitted that the assessee could get an opportunity to submit the explanation before the authorities when the same was asked for during the assessment and appellate proceedings. The assessee cannot submit the same on his own without any proceeding. Ld. counsel has again drawn our attention towards paper book page no. 57 and submitted that MD of the company Shri Shravan Gupta clearly replied that relevant detail would be provided for verification. Ld. Counsel finally prayed that the impugned addition may kindly be deleted and AO may be directed accordingly. 10. Replying to the above, ld. DR submitted that no books of accounts were found at the time of search and seizure operation. The DR further submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the point that the impugned amount was returned by the assessee to M/s MGF Development Ltd. on 15.9.2007 which is clearly reflected from the books of accounts of the assessee as well as cash in hand and assessee s account in the books of M/s MGF Development Ltd. Under these circumstances, we reach to a conclusion that the assessee also explained the amount of cash found during the course of search that an amount of ₹ 33,90,450/- belonged to M/s MGF Development Ltd. which was returned in due course of business. Hence, we are inclined to hold that the authorities below were not justified in making and confirming the addition on this amount in the hands of the assessee. Accordingly, sole ground of the assessee is hereby allowed. Before w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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