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Shri Rajmohan Agarwal, C/o M/s. Agarwal Jewellers Versus ACIT 2 (1) , Bhopal

Addition for the cash found in search - unexplained cash - Held that:- We find that the assessee submitted a statement of availability of agricultural income at ₹ 1,28,191/- ( 4,40,016- 3,11,825) prepared after date of search i.e. 13.11.2007, by recording certain entries remained to be recorded after September 2007. However, this cannot be relied as no evidence of un-recorded entries was found during search. In view of this matter, were are of the considered view that cash of ₹ 1,25, .....

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R PER O.P.MEENA, ACCOUNTANT MEMBER This appeal by the assessee is, directed against the order of the learned Commissioner of Income Tax (Appeals)-31, Camp- Bhopal [in short CIT (A)] dated 23.11.2015 for the Assessment Year 2008-09 on following grounds: (1) That on the facts and in the circumstances of the case and in law, the learned CIT (A) erred and not justified in sustaining addition of ₹ 2 lacs made by the A.O. for the cash found in search. The assessee submits that having regard to e .....

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34C and u/s. 234D are unlawful and hence, be cancelled. 1.0. Ground no. 1 &2 relates to sustaining of addition of ₹ 2 Lacs made by the AO on account of cash found and seized during the course of search, treating as unexplained cash. 1.1. Succinctly, facts as culled out from the orders of lower authorities are that the assessee is individual, is partner in M/s. Agarwal Jewellers, which is engaged in trading in gold and diamond jewellery and belonging to Agarwal group. A search and seizu .....

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la Agarwal (wife of the assessee). However, this explanation was not found acceptable in absence of any documentary evidence. 1.2. The assessee carried the matter in appeal before the CIT (A). It was explained that during the course of search and seizure operation at the residential premises of the assessee, agricultural income and expenditure statement was found in which agricultural income of ₹ 3,34,576/- was reflected (copy was attached) is pertaining to M/s. Agarwal Nursery a proprieta .....

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e of search when a question to this effect was put to her. Moreover, no documentary evidence has been submitted to link to source of agricultural income now claimed. Accordingly, addition was confirmed. 1.3. Being, aggrieved the assessee filed this appeal before the Tribunal. The learned Counsel for the assessee, submitted that a diary was seized vide annexure LPS-1 containing 20 pages wherein year wise details of receipts and expenses of agricultural activity were noted (PB-20-29). One such pag .....

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. Further, net agricultural income of ₹ 3,34,576 (rounded ₹ 3,35,000) was offered in the return of income duly supported by seized papers and it was accepted by the AO in the assessment of Smt. Bela Agarwal. All these records were before the AO, but he failed to consider the same in proper perspective. Therefore, it was contended that said cash found during search is out of agricultural income of Smt. Bela Agarwal (wife of assessee). During the course of search, the assessee was out .....

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for which it was stated that there is no documentary evidence available. In view of above facts, it was contended that adverse view taken by the CIT (A) that explanation is afterthought and no evidence has been linked to impugned cash is not correct and was without appreciating facts and evidence on record. The agricultural income and expenditure statement found during search along with return of income and computation of total income statement filed by the wife of assessee stands documentary e .....

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ent year 2007-08 and there was no claim that any agriculture land was acquired after that year and up to date of search. Therefore, agricultural income shown at ₹ 3,35,000/- on the basis of loose paper LPS-1 is not reliable. As per claim of the assessee, the agricultural income comes to ₹ 4,40,016/- and expenses comes to ₹ 3,11,825/-, hence, the availability of cash comes to ₹ 1,28,191/- as against the cash ₹ 2,11,108/- found during the course of search. Further, in .....

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xpenses up to the month of September 2007. We find that loose paper of said diary appearing at page No 28, contained the receipts of agricultural produce of ₹ 3,89,194/- as against agricultural expenses of ₹ 2,64,231/- up to September 2007 falling under the assessment year under consideration. Thus, net agricultural income can be computed at ₹ 1, 24,963/- [3, 89,194-2, 64,231] on the basis of seized papers as on the date of search. There is presumption u/s. 132(4A) of the Act t .....

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