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2015 (12) TMI 1284 - ITAT DELHI

2015 (12) TMI 1284 - ITAT DELHI - TMI - Post Search assessment - double additions - Benefit of the surrender made by the assessee - Held that:- In this case assessee has prepared a cash flow statement from the books of accounts of the assessee and shown that sources of the amount of ₹ 25,00,000/- taken to Bhuveneshwar on 5.8.2008 and ₹ 45,00,000/- cash seized on 22.8.208 are out of the amount available with the assessee on account of surrender made. As per the detailed breakup of the .....

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0/- 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 .....

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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 Maharishi, AM For the Appellant : Shri Kapil Goel, Adv For the Respondent : Ms Nandita Kanchan, CIT ( DR ) ORDER Per Prashant Maharishi, AM 1. The present appeal filed by the .....

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addition of ₹ 70,00,000/- made by Ld. Assesing Officer without appreciating that stated addition and action on part of the Ld. AO has resulted in patent and glaring double taxation. iii. That on the facts and in the circumstances of the case and in law, learned CIT(A) erred in confirming the addition of ₹ 70,00,000/- made by Ld. Assessing Officer without appreciating the statement of searched person recorded u/s 131(1A) of the Act, as regards utilization of surrendered cash/amount. .....

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ating that unless proved otherwise by Revenue, it shall be available to assessee to explain the source of cash found from available cash generation. 2. The assessee company is engaged in the business of trading of computer hardware/software and other information technology related items. For the assessment year 2009-10, the assessee company filed its return of income on 29.09.2009 declaring a total income of ₹ 37,95,500/-. The case was taken under scrutiny by issuing notice under Section 1 .....

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ited 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/- tran .....

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ansferred to Bhuveneshwar on 5.8.2008 and ₹ 45,00,000/- on 22.8.2008 as there is no immediate sources of funds available on the dates before the dates of cash found / transferred. AO also did not accepted the arguments of the assessee that sources of these amounts of ₹ 70,00,000/- is disclosure made by the assessee because AO was of the view that nobody would keep such a heavy cash with him idle for such a long time. Therefore The Assessing Officer, having found unsatisfactory the re .....

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own by the assessee. Therefore CIT (A) also did not grant the benefit of the disclosure made by the assessee and confirmed the addition of ₹ 70,00,000/- as undisclosed income of the assessee. Therefore now assessee is in appeal before us. 3. Before us assessee submitted cash flow statement of the amount of cash available with it from 1-4-2008 to the 29.8.2008 prepared from the cash book to justify that assessee was having a sufficient cash available with him and which should be considered .....

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war and ₹ 8 lakhs cash sent to Chennai and ₹ 45 lakh seized by the income tax department are already shown and out of which AO has given credit of ₹ 8 lakhs only. Regarding the period of sixteen months being intervening period from the date of surrender to the date 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 acce .....

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0.7.2012 (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 justify the existence of .....

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nt that cash flow statement is submitted by assessee but same is not the cash book of the assessee so based on such cash flow statement the benefit is rightly not granted by the AO. 5. In rejoinder ld AR of the assessee once again relied on the decision cited showing that in those decisions intervening period was more than the period in the case of the assessee but Hon ITAT has considered the set off / telescoping. Therefore it was submitted that in the even t he cash flow statements shown by th .....

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sessee is that assessee has failed to explain the use of the cash for the intervening period. Both the lower authorities further swayed by the reason that no prudent businessman will keep the cash idle for such a long time. In this case assessee has prepared a cash flow statement from the books of accounts of the assessee and shown that sources of the amount of ₹ 25,00,000/- taken to Bhuveneshwar on 5.8.2008 and ₹ 45,00,000/- cash seized on 22.8.208 are out of the amount available wi .....

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.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 entrie .....

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d AO makes an assessment without disputing it the cash flow statement made by assessee from the same material cannot be rejected merely on surmises that no prudent person will keep the money for such a long time of sixteen months. There is no evidence with the AO that this money is used by the assessee for some other purposes which are not recorded in the books of accounts. In absence of such a finding it can be safely presumed that the cash was available with the assessee on which it has alread .....

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