TMI Blog2017 (12) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-company before the authorities below and all the entries in the seized document are reflected in the books of account. The payments received from Central Coal Field Ltd., have been mentioned in the bank account of the assessee12 company and payments mentioned in the seized documents have been made to the three parties. The Ld. CIT(A) therefore, on proper appreciation of all the seized documents in reference to the books of account, correctly deleted the addition. Addition on account of unexplained cash found during search - Held that:- No merit in this ground of appeal of the Revenue. The assessee -company explained the availability of the cash found during the course of search as available to the assessee-company and the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The A.O. noted that assessee-company has investments in shares, the income of which i.e., dividend is exempt from tax. The assesseecompany was specifically asked to give details of the expenses attributable for earning this income and also to quantify the disallowance under section 14A read with Rule 8D of the I.T. Rules. The assessee-company submitted before A.O. that assessee-company has not earned any dividend income and as such, question of incurring of expenditure does not arise. The A.O. however, noted that by not earning of income does not mean non-incurring of expenses. There might be huge amount of expenses which could not result into earning of income. Further, presently, it is settled Law that Rule 8D is applicable w.e.f. A.Y. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atute is to be considered strictly. Section 14A(1) is the basic and primary provision, which provides for disallowance of an expenditure incurred in relation to exempt income. The A.O. has rightly disallowed the claim of expenditure pertaining to exempt income within the ambit of Law and provisions of Income Tax Act. The Ld. D.R. also filed the written submissions in which certain case Law have been relied upon. 5.4. On the other hand, the Learned Counsel for the Assessee, reiterated the submissions made before the authorities below and submitted that in A.Ys. 2009-10 to 2011- 12 the same issue came up for consideration before ITAT, Delhi B Bench in ITA.Nos.6876 to 6878/Del./2015 dated 15th September, 2017, in which following the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed. Issue No.1 is decided against the Revenue. ISSUE No.2 7. In A.Y. 2012-2013, the Revenue on ground No.3 challenged the deletion of addition of ₹ 69,61,660 made on the basis of the seized material. In this case, search and seizure operation was conducted on 12th April, 2012. During the course of assessment proceedings, assessee-company was asked to explain the payment mentioned at pages 18 and 19 of the seized paper A-1. The assessee-company submitted before A.O. that financial jottings at pages 18 and 19 of Annexure-A1 amounting to ₹ 69,61,660 represents draft statements of bill details, deduction therefrom and fund planning for the month of March, 2012 of Ranchi Branch Office of SMASL (assessee). The financial im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S. The copy of the bank statement was also filed. The assessee-company also filed copy of the accounts. It was submitted that the planning can be recorded at any time. It was also explained that after receipt of the amount in question from Central Coal Field Ltd., the assessee-company has made payments to three persons which are mentioned in the seized paper for the diesel supplied and work done by them. Copies of the accounts were also filed. All the entries are reflected in the books of account. It was, therefore, submitted that addition may be deleted. The Ld. CIT(A) considering the explanation of assessee-company found that entries in the seized document duly reflected in the books of account of the assessee-company and accordingly, del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 2,97,784 on account of unexplained cash found during search. The A.O. asked the assessee-company to explain source of the cash. The assesseecompany submitted that during the course of search proceedings, cash amounting to ₹ 6,47,000 was found. This amount pertains to 03 companies i.e., assessee, Sainik Finance Industries Limited (SFIL) and M.P. Sainik Coal Mining Private Limited (MPSCMPL). Copy of the cash book and confirmations were filed. The A.O. was not satisfied with the explanation of assessee-company because cash of ₹ 6,47,000 was found from Gurgaon Office of the assessee-company and as per cash book, balance is available of ₹ 3,49,216 only. Other group companies are having their office at Delhi and Bhop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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