TMI Blog2021 (8) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... resents as unexplained cash credit under section 68 of the Act. Accordingly in the absence of, any adverse material on record pertaining to the year under consideration, there cannot be any addition under section 68. We do not find any reason to interfere in the order of the CIT (A). Hence the ground of appeal of the Revenue is dismissed. As we have decided the issue in favour of the assessee on technical count, we do not find any reason to go into the merit of the case. - IT(SS)A No. 164/AHD/2019 With C.O.No.161/Ahd/2019 - - - Dated:- 17-8-2021 - Shri Rajpal Yadav, Vice President And Shri Waseem Ahmed, Accountant Member For the Revenue : Shri Virendra Ojha. CIT.D.R For the Assessee : Shri Jwalin Nanavaty A.R ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal is filed by the Revenue and the CO is filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)- 11, Ahmedabad, dated 25/01/2019 (in short Ld. CIT(A) ) arising in the matter of assessment order passed under s. 153C r.w.s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as the Act ). The assessee has filed the Cross Objec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modation entry provider group. During the course of search an excel sheet was found containing the details of cash receipt and payment for the period from 2 April 2010 to 26 August 2010. From this sheet, it was established that the cash has been deposited in the bank account of the assessee. 4.2 Based on above, the AO sought an explanation from the assessee about the source of deposit of cash for ₹ 1,18,34,000/- in the year under consideration in the proceedings initiated under section 153C of the Act. The assessee explained the source of cash deposited in his bank account in the manner as detailed below: Rs. Scrap sales 33,00,000 Extra charges received from members 22,50,000 Capital contribution by Sanjay M Sutaria 7,00,000 Capital contribution by Sanjay M Sutaria 7,00,000 Cash withdrawals from cheques received from Saral management Consultancy, Siddham finance, Sthapatya Slip Contruction etc. 50,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of commissioner of Income Tax (Central)-lll us. Kabul Chawla, [2015) 61 taxmann.com 412 (Delhi) v) PGT V. Sunrise Finlease (P.) Ltd. [2018] 89 taxmann.com 1 (Gujarat) Ongoing through the facts of the case, the appellant's conclusion that the additions have been made without any incriminating material found during the course of search related to this assessment year, is found factually correct. Therefore, keeping in view the above mentioned binding judgments, the additions made by the AO are deleted. This ground of appeal is allowed. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 7.1 The appellant's arguments are in two fold. Firstly on the basis of legal contention that during the course of search proceedings, no incriminating material was found in respect of unsecured loan of the aforesaid parties for which the aggregate addition of ₹ 44,95,000/- has been made by the AO u/s. 68 of the Act and the appellant further contended that during the course of assessment proceedings also, the AO has not brought on record any incriminating material in respect of addition made by the AO for unsecured loan received during the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her conditions, one of the condition for initiating the proceedings under section 153C of the Act is that the documents found from the premises of the searched person but belonging to the other person, must have the bearing on the total income of the other person. 10.1 In the case on hand, we find that an excel sheet was found as a result of search containing the details of cash receipt and payment for the period from 2 April 2010 to 26 August 2010. The dates mention in the excel sheet in itself suggest pertaining to the financial 2010-11 corresponding to assessment year 2011-12. In other words, these documents, without going into the fact whether these represent incriminating materials or not, do not pertain to the year under consideration. Therefore, no inference can be drawn that the assessee has deposited unaccounted cash in its bank accounts without their being any adverse material on record pertaining to the year under consideration. 10.2 Likewise, there was no document found of incriminating nature with respect to the unsecured loan of ₹ 44,95,000.00 received by the assessee in the year under consideration indicating that the same represents as unexplained ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 In the result, the appeal filed by the revenue is dismissed. 11. Coming to the CO raised by the assessee bearing No. 161/AHD/2019 (IT(SS)A No.164/Ahd/2019) for the assessment year 2009-10. 12. At the outset we note that the additions made by the AO have been deleted by us in the preceding paragraph bearing number 10 on the reasoning that there was no incriminating document found during the search qua the deposit of cash and unsecured loan received by the assessee. Therefore, in the absence of any incriminating document, no addition is warranted in the assessment framed under section 153C of the Act. For detailed discussion, please refer the relevant paragraph. Accordingly, we do not find any reason to adjudicate the issue raised by the assessee in its CO. As such the CO filed by the assessee becomes infructuous and does not require any separate adjudication. Accordingly we dismiss the same. 12.1 In the result, the CO filed by the assessee is dismissed. 13. In the combined results, the appeal filed by the Revenue is dismissed and the cross objection filed by the assessee is also dismissed as infructuous. Order pronounced in the Court on 17/08/2021 at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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