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TMI Blog2016 (1) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition of Rs. 14,00,000/- as income from other sources. On the facts and circumstances of the case and in law, the addition of Rs. 14,00,000/- made by the AO is erroneous and CIT(A) should have deleted the same. 2. On the facts and circumstances of the case and in law, the assessment order passed by the AO u/s. 143(3) r.w.s. 153A is illegal and without jurisdictional and Commissioner of Income Tax (A) should have held so. The appellant craves leave to add one or more ground of appeal or to alter/ modify the existing ground of appeal or to alter/ modify the existing ground before or at the time of hearing of appeal. The aforesaid grounds are without prejudice to each other." 2. The brief facts of the case are that a search an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cing the relevant findings vide para no. 4.2 to 4.7 at pages 6 to 8 of the impugned order passed by the Ld. CIT(A) as under:- "4.2 I have considered the assessment order and the submissions made. Facts are that during search and seizure incriminating documents indicating unaccounted cash receipts from customers, inflated purchases and other receipts were seized relating to various persons of the appellant group. The appellants, when confronted with the contents of these documents, admitted unaccounted income amounting in all to Rs. 4,78,05,701/-, including the amount of Rs. 2,99,05,70I/- relating to the appellant company for various assessment years. The amount of Rs. I 4,00,000/- presently in dispute is part of the undisclosed income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d source of acquisition, or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer, then the money and the value of the bullion, jewellery Or other valuable article may be deemed to be the income of the assessee for such financial year. For this section to come into operation, the assessee must be found to be the owner of any money, bullion, jewellery or other valuable article. The terms money, bullion, jewellery or other valuable article signify concrete things and do not mean amounts recorded in books of account or documents. Therefore, in such cases where unaccounted entries are found recorded in the books or documents seized, section 69A cannot be invoked. This provision can be invoked only when unacc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n receipt basis and not on the basis of POC method. It is also to be noted that regular business, duly accounted for regularly in the books of account, and business transactions not recorded in the books of account cannot be treated on an equal footing. While income from regular business transactions is to be taxed under the buSiness head, income from unaccounted I undisclosed business transactions are not mandated by the law and are to be treated on different footing and taxed under the head 'income from other sources'. I hold accordingly. 4.7 In view of the above, the unaccounted amount of Rs. 14,00,000/- is taxable u/s 56 as income of the appellant under the head 'other sources' for AY 2007~08.The AO is directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, bullion, jewellery or other valuable article. The terms money, bullion, jewellery or other valuable article signify concrete things and do not mean amounts recorded in books of account or documents. Therefore, in such cases where unaccounted entries are found recorded in the books or documents seized, section 69A cannot be invoked. This provision can be invoked only when unaccounted cash, bullion, jewellery or any other valuable article or thing is found during search or otherwise. We find that it is not the case of A.O. that the assessee has not offered any explanation. It is also not the case of A.O. that explanation offered by him with "regard to source and acquisition of money is not satisfactory. The nature of receipt is business in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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