TMI Blog2015 (12) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/-. As per that statement assessee still has the balance of ₹ 74,70,639/- as at 22.8.2008 which is taken in to the books of accounts. This cash flow statement is not controverted by the AO as well as CIT(A) when it was specifically submitted that same is made based on the entries made in the cash book immediately after the surrender of ₹ 2,47,85,236/-. It is surprising that AO wants to tax the surrender amount as well as its application which definitely amounts to double addition in the hands of the assessee specially when the amounts are recorded in the books of accounts and there is no evidence that same is not available with the assessee Merely on the basis of time period in absence of any contrary material assets/ cash available with the assessee in its books cannot be disbelieved. We reject the contention of the revenue that because of elapse of such a long time, credit of surrender made by assessee cannot be granted for the amount used by assessee out of that disclosure/surrender. Therefore we reveres the order of CIT (A) and delete the addition - Decided in favour of assessee. - ITA No. 1837/Del/2012 - - - Dated:- 23-11-2015 - C. M. Garg, JM And Prashant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 132 of the Act, an amount of ₹ 45,00,000/- was found and seized. In the statement recorded by the Assessing Officer, Sh. Mukesh Kumar admitted that he had also carried ₹ 25,00,000/- by Purshotam Express and delivered to Bhubaneshwar Officer on 07.08.2008. He further admitted that he had visited Chennai by Tamilnadu Express on 06.06.2008 to deliver cash of ₹ 8,00,000/- to driver Ravi Shankar of M/s SAP Chennai. Thereafter, vide letter dated 23.12.2010 the assessee was asked to explain as to why the amount of ₹ 78,00,000/- should not be treated as its unexplained cash and added to the income from undisclosed sources. The assessee company vide its letter dated 28.12.2010 replied that the cash amounting to ₹ 8,00,000/- transferred to Chennai, ₹ 25,00,000/- transferred to Bhubaneshwar and ₹ 45,00,000/- seized by the I.T. Department was from the cash generated from the surrendered amount of ₹ 247.19 lakhs and hence the same cannot be treated as our income as it would taxing twice on same income. Out of the above amount AO allowed set off of ₹ 8,00,000/- being cash Amount received on that date from Mr. Sandeep Gupta. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of utilization of cash he explained that the amount is already available in the books of the assessee and when it is depicted from cash flow chart prepared from the books of accounts of the assessee it should be accepted and no further addition should have been made. His further submission was that the entries in books of accounts were accepted by the AO where in entries of disclosure is made for this he took us to page no 2 5 to 7 of the paper book filed for the same. He further relied on following judicial precedents supporting his views :- i. M/s Sunil Mantri Realties Limited V ACIT ITA No 6988/Mum/2011 ii. Info world V DCIT 796, 797 798/Del/2012 iii. CIT V PremChand ITA No 419 of 2006 dated 20.7.2012 (P H) 4. Ld CIT DR vehemently defended the order of AO as well as CIT (A) and she further stressed that in the event assessee has failed miserably to give details of the use of cash in intervening period of sixteen months, the explanation given by the assessee is self serving and cannot be believed. She further submitted that cash flow submitted by the assessee is not from any record kept by the assessee but merely a recording of transaction entered just to j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh flow statement shows that as on 6.8.2008 assessee was having the cash balance of ₹ 1,50,85,236/- and out of which on 31.7.2008 an amount of ₹ 6,14,597/- was spent on Infoage, on 5.8.2008 ₹ 25,00,000/- utilized for sending for cash to Bhuvneshwar and on 22.8.2008 cash was seized by Income tax department of ₹ 45,00,000/-. As per that statement assessee still has the balance of ₹ 74,70,639/- as at 22.8.2008 which is taken in to the books of accounts. This cash flow statement is not controverted by the AO as well as CIT(A) when it was specifically submitted that same is made based on the entries made in the cash book immediately after the surrender of ₹ 2,47,85,236/-. It is surprising that AO wants to tax the surrender amount as well as its application which definitely amounts to double addition in the hands of the assessee specially when the amounts are recorded in the books of accounts and there is no evidence that same is not available with the assessee. Regarding the intervening time period it is apparent that when the books of accounts shows the entries recorded there in and AO makes an assessment without disputing it the cash flow statement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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