TMI Blog2020 (2) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... on to this amount of ₹ 14,50,000/- dated 18.06.2012 since this amount is entered in the cash book prior to survey and this amount get subsumed in the ₹ 45 lakhs surrendered by the assessee for this assessment year. Therefore, no other addition was warranted and we delete the addition of ₹ 14,50,000/-. Therefore, this ground of appeal of assessee is allowed. Undisclosed rental income - survey operation u/s. 133A - HELD THAT:- We note that the assessee had received rental income of ₹ 3,36,000/- in this assessment year which has been rightly taxed by the AO. However the only limited prayer of the Ld. AR is that the standard deduction on the rental income should be granted. Needless to say, since this amount is on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A) ought to have granted the benefit of standard deduction @ 30% of the rental income as per section 24(a) against the rental income of ₹ 3,36,000/-. 3. The first issue involved in this appeal of assessee is against the action of Ld. CIT(A) in confirming the addition of ₹ 14,15,000/- on account of undisclosed cash receipts and also not giving telescoping benefit to the above income of Ra.14,15,000/- against the income of ₹ 45,00,000/- offered during the course of survey. 4. Briefly stated facts are that the assessee had filed return of income on 01.10.2013 declaring total income at ₹ 69,19,960/-. The case was selected for scrutiny assessment and assessee was served notice u/s. 143(2) of the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eafter, the assessee also stated that this amount of ₹ 14,15,000/- was most probably collection from transport receipt which has been declared and included in the P L Account. According to AO, the above explanation of the assessee is nothing but a weak endeavor to cover up the undisclosed receipt in the disguise of transport receipt and against this receipt too, initially he tried to state that the entry relates to the business of the employee. So, the AO considered the above sum of ₹ 14,15,000/- as undisclosed receipt of the assessee and added back to the total income of the assessee. Aggrieved, assessee preferred appeal before the Ld. CIT(A) who confirmed the action of AO by observing that the assessee has not submitted any pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aiah Co Vs. CIT reported in 123 ITR 457 which was followed by the Hon'ble Bombay High Court Punjab Haryana High Court in the cases of CIT Vs. Jawanmal Gemaji Gandhi reported in 151 ITR 353 and CIT Vs. Prem Chand Jain reported in 189 ITR 320 respectively wherein it was held as follows: 8. There can be no escape from the proposition that the secret profits or undisclosed income of an assessee earned in an earlier assessment year may constitute a fund, even though concealed, from which the assessee may draw subsequently for meeting expenditure or introducing amounts in his account books. But it is quite another thing to say that any part of that fund must necessarily be regarded as the source of unexplained expenditure incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration on 16.01.2013 had already offered undisclosed income of ₹ 95 lacs which includes ₹ 45 lacs for this assessment year and since all other entries found in the diary SKS-5 has already been tallied with the cash book, we are of the opinion that the assessee has been able to give a plausible explanation to this amount of ₹ 14,50,000/- dated 18.06.2012 since this amount is entered in the cash book prior to survey and this amount get subsumed in the ₹ 45 lakhs surrendered by the assessee for this assessment year. Therefore, no other addition was warranted and we delete the addition of ₹ 14,50,000/-. Therefore, this ground of appeal of assessee is allowed. 7. The second issue involved in this appeal of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, he added back the said sum of ₹ 3,36,000/- to his total income. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) who confirmed the action of AO. Aggrieved, assessee is in appeal before us. 9. We have heard rival submissions and gone through the facts and circumstances of the case. We note that the assessee had received rental income of ₹ 3,36,000/- in this assessment year which has been rightly taxed by the AO. However the only limited prayer of the Ld. AR is that the standard deduction on the rental income should be granted. Needless to say, since this amount is on account of rental income, then standard deduction needs to be granted to the assessee and the AO is directed to do so in accordance to law. So, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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