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2016 (7) TMI 391 - ITAT MUMBAI

2016 (7) TMI 391 - ITAT MUMBAI - TMI - Undisclosed/unexplained cash u/s 69A - assessee has chosen a particular manner to declare such income in its books of account by incorporating it as net proceeds of the activity of sale of agricultural produce - Held that:- There is no material found in search or otherwise to show that assessee has carried out any agricultural activity. Ostensibly, the assessee claims that the said net amount of ₹ 83,00,000/- represents unexplained cash seized during .....

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course of search. For that matter, there is no material or evidence on record which could show that other than the cash seized of ₹ 83,00,000/-, there was any other unexplained income to that extent. Though the manner in which assessee-company has offered the unexplained cash of ₹ 83,00,000/- to tax in the return of income is not in the best of the terms, yet it cannot be negated by merely cherry-picking the facts. In fact, the notes of account has to be understood in toto and, acco .....

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And Shri Sanjay Garg, Judicial Member For the Assessee : Shri Vijay Mehta For the Revenue : Shri S. Senthil Kumaran ORDER Per G. S. Pannu, AM The captioned appeal by the assessee is directed against the order of CIT(A)-41, Mumbai dated 13.02.2013, pertaining to the Assessment Year 2009-10, which in turn has arisen from the order passed by the Assessing Officer dated 29.12.2010 under section 143(3) of the Income Tax Act, 1961 (in short the Act ). 2. In this appeal, the solitary dispute raised by .....

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ained. In the course of search assessee admitted that the aforesaid sum was unexplained additional income in excess of the income shown in the regular books of account and accordingly the same was to be offered for taxation. In the return of income filed subsequent to the search on 29.9.2009 for assessment year under consideration, assessee claimed that such additional income of ₹ 83,00,000/- was offered for taxation. The Assessing Officer, however, concluded that the unexplained cash of & .....

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xplained cash found at the time of search. The stand of the assessee was that the entries in the books of account have been made on account of sale of agricultural produce and after netting-off the expenses, the net income of ₹ 83,00,000/- has been declared, which represented the cash seized during the search. Before us as well as before the lower authorities, the assessee referred to Note no. 5 forming part of the notes attached to Balance-sheet and Profit & Loss account which reads a .....

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vernment Treasury. This has been accounted as Advances Recoverable in cash or in kind or for value to be received in schedule F of the Balance Sheet as on 31st March 2009. 5. The aforesaid explanation of the assessee has not been accepted by the Income-tax authorities on the ground that the said entries do not reflect unexplained/unaccounted cash of ₹ 83,00,000/- found during the course of search. One of the points raised by the assessee was that the aforesaid entries on account of sale of .....

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assessee of having carried out any agricultural activity and, therefore, the stated entries in the books of account cannot be said to represent unexplained cash of ₹ 83,00,000/- admitted in the course of search. In this manner, the orders of lower authorities have been sought to be defended. 6. Per contra, the claim of learned representative for the assessee is that the notes to account reproduced above clearly points out that the entries passed in the books of account are relatable to th .....

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ropriate, but it certainly does not justify an inference that a further addition of ₹ 83,00,000/- is required to be made. The learned representative pointed out that in fact in the course of search when cash of ₹ 83,00,000/- was admitted as unexplained, no particular source was admitted and that the entries in question have been made only for the purposes of bringing on record such unexplained cash. It has been contended that though the entries have been made as sale of agricultural .....

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ld be declared. The difference between the assessee and the Revenue primarily arises as to whether the assessee has indeed offered for taxation the amount of ₹ 83,00,000/- found as unexplained cash. The assessee has chosen a particular manner to declare such income in its books of account by incorporating it as net proceeds of the activity of sale of agricultural produce. In fact, the aforesaid declaration, as explained in the notes to account reproduced above, is bland and is not supporte .....

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