TMI Blog2013 (5) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the statement on oath recorded under section 132(4) of Mr. Sunil Mantri, came to the conclusion that the cash sum of ₹ 35,11,878 stands unexplained. The reconciliation of the unexplained cash was worked out as under by the Assessing Officer: Total Cash Found ₹ 49,09,800 Less: Actual cash balance as per book ₹ 10,97,922 Hence, total excess cash ₹ 35,11,878 The working of actual cash balance as per book was as under: Cash balance available for the group (ref. q.no.7) ₹ 30,62,672 Less: (1) amount debited in cash book but not withdrawn (ref. q.no.20 21, 24, 25 27) ₹ 16,00,000 (2) Amount spent but not reduced in cash book ₹ 3,64,750 Actual cash balance as per book Rs 10,97,922 He further observed that the assessee could not explain or give any cogent reason for explaining this excess cash found. Accordingly, he added ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh of ₹ 79,08,150 taxed in earlier year A.Y. 2008 09 would have remained in hand till the date of search on 8.7.2008. It is difficult to believe that appellant would have kept the huge cash of over ₹ 79 lacs idle and it is possible that appellant would have used such cash in some other activity which are not brought to tax. Accordingly, I do not agree that the cash receipt of ₹ 79,08,150 taxed in earlier year would have been found during search action carried on 8.7.2008. However, the passage of time between withdrawal of ₹ 10,00,000 from Solapur branch of the bank and the date of search justifies to allow the set ff. Thus, addition of unexplained cash is sustained at ₹ 25,11,878 (Rs 46,09,800 10,97,922 ₹ 10,00,000) and sustain the balance addition of ₹ 25,11,878. 5. Before us, the learned Counsel submitted that in the immediately preceding year, a sum of ₹ 79,08,150, was added by the Assessing Officer in the form of cash receipts which was received from various customers from Pune project under section 68 of the Act. Without there being any evidence or material on record found during the course of search or post search invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition of ₹ 70,12,150, as sustained by the learned Commissioner (Appeals) in the earlier assessment year. In support of this contention, he has also filed a compilation of the following case laws on account of telescoping of such kind of addition. i) S.M. Dalvi v/s ACIT, [2011] 137 TTJ (Mum.) 581; ii) P.R. Patel v/s DCIT, 78 ITD 51 (Mum.); iii) CIT v/s Venkateswara Timber Depot, 222 ITR 768 (AP) and iv) DCIT v/s Vishwanath Prasad Gupta, 130 ITD 73, (TM) (Jab.). 7. On the other hand, the learned Departmental Representative strongly relied upon the findings of the learned Commissioner (Appeals) and submitted that there has to be some basis or explanation by the assessee that it was the same amount which was found during the course of search. Such a benefit cannot be given without any cogent reason. Moreover, in the statement recorded, no such explanation or clarification was given. Therefore, the plea taken by the learned Counsel of giving benefit of earlier addition of cash receipts cannot be accepted. 8. We have heard the rival contentions, perused the relevant findings of the Assessing Officer as well as the Learned Commissioner (Appeals) and also the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore than ₹ 70 lakhs has been confirmed, the benefit of telescoping has to be given unless there is some material on record to show that the money has been utilised somewhere else. Thus, we hold that the addition of ₹ 25,11,878 is covered by the addition of ₹ 70,12,150, as sustained by the learned Commissioner (Appeals) in the immediately preceding 2008 09. Accordingly, the assessee will get relief of ₹ 25,11,878. 9. In the second ground of appeal, the assessee has challenged the addition of ₹ 15,99,000, on account of unexplained expenditure under section 69C. 10. The Assessing Officer noted that during the course of search action, spiral pocket diary containing 15 written pages was found wherein certain expenditure relating to the business was found. In the statement recorded under section 132(4), the managing director Mr. Sunil Mantri, has given page wise total which aggregated to ₹ 15.99 lakhs and were in the nature of misc. expenses to co ordinate with various persons relating to project and were not accounted for in the books of account. This amount was offered as undisclosed income in the form of unaccounted expenditure in the hands of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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