TMI Blog2019 (9) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... und during the course of survey represents unaccounted income. We, therefore are of the considered view that there is no error in the findings of fact recorded by the lower authorities and hence, we agree with the finding of the CIT(A) and reject ground taken by the assessee Entitlement for deduction 80IA(4)(iii) - withdrawal of approval granted - HELD THAT:- We find that although Ministry of Commerce and Industry, Government of India vide letter dated 24/07/2006 granted approval to the said park stating that the project is covered under the Industrial Park Scheme, 2002 and accordingly, entitled for deduction 80IA(4)(iii) but subsequently approval granted by the Empowered Committee has been withdrawn vide their letter dated 06/01/2009, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the returned income of the appellant on account of alleged excess cash found during the course of survey action ignoring the fact that the cash found was pan of the cash receipts from the Solitaire project duly offered to tax by the appellant company. IB. The Id CIT (Appeals) erred in sustaining the action of the Id AO resulting in double addition of ₹ 1,94,232/- once as income and again on account of application thereof in the form of an asset. 1C. The Id CIT (Appeals) erred in confirming the addition of ₹ 1,94,232/- , made by the Ld. AO on the sole basis of the bonafide error on the part of the director of the appellant company in clarifying a particular issue during the course of surv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence amount of ₹ 1,94,232/- has been treated as unexplained money and accordingly, a statement was recorded on 04/10/2006, from Shri Kamlesh Shah Director of the company where he had admitted excess cash of ₹ 1,94,232/- and also agreed to offer an additional income. 3. The case has been selected for scrutiny. During the course of assessment proceedings, the AO called upon the assessee to explain as to why an addition should be made in respect of excess cash found during the course of survey for ₹ 1,94,232/-. In response, the assessee has filed a letter dated 02/11/2009 and submitted that it has declared additional income of ₹ 24,50,000/- from Solitaire Project. In respect of income, in the form of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 24, 2006, Pending issue of notification by Central Board of Direct Taxes, in this respect, company has re-submitted the application for amendment in original application which is still pending for approval. As this being a project approval as IT. Park entitled to Income-tax benefit as provided under subsection 4(iii} of section 80IA of the IT. Act, 1961. No income have been recognized from this project in the current year' 6.2 From the above note it is clear that the project in which the assessee has claimed deduction u/s.80IA is not fully approved and certain issues have been pending with the Board. In light of the above facts, during the course of assessment proceedings the assessee was asked to furnish the releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he project has not been covered under Industrial Park Scheme 2002, hence deduction u/s.80IA of the Act is not allowable to the assessee. 6.4 In view of the above discussion, it is clear that the assessee has no evidence to prove that its project is covered under the relevant scheme and hence it failed to submit the details as asked for on the date of hearing. Further, more after giving ample time the assessee failed to submit any details to substantiate its claim of deduction. In absence of any proper explanation, the deduction claimed u/s 80IA of ₹ 2,34,07,151/- is disallowed to the assessee. Accordingly, penalty proceedings u/s 271(1)(c) of the Act are being separately initiated for furnishing i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we have heard the Ld. DR, perused the material available on record and gone through orders of the authorities below. As regards additions made towards excess cash found during the course of survey of ₹ 1,94,232/-, the AO as well as the Ld. CIT(A) had recorded categorical finding in the light of statement of Shri Kamlesh Shah, Director of the company that the assessee was having excess cash during the course of survey for which no explanation has been offered. We further noted that although the assessee claims to have taken the benefit of telescoping towards income offered from Solitaire Project, but while recording statement during the course of survey it was the case of the assessee that excess cash found during the course of survey ..... X X X X Extracts X X X X X X X X Extracts X X X X
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