TMI Blog2022 (9) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... here was no adverse inference drawn by the AO with respect to the documentary evidence furnished by the assessee in respect of the unsecured loans. The learned counsel also does not dispute the finding of the CIT(A) that there was a surrender of income by the Assessee in the previous AY to the tune of Rs. 15.22 crores and tax was duly paid thereon. There is no challenge to the finding of the ITAT that in case of addition of Rs. 9.02 crores, the amounts were opening balances from the earlier years. ITAT has after perusing the evidences filed by the Assessee and the remand reports received from the AO, concluded that the addition against the Assessee cannot be sustained. The learned counsel for the Revenue has not been able to point out an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19 for the Assessment Year ( AY ) 201213 whereby the appeal of the Assessee has been allowed. The Assessee was the proprietor of M/s Rhea Distribution Company. 2. In the present appeal, the Revenue is aggrieved by the deletion of the addition of Rs.24,50,91,663/- which as per the Revenue was an unexplained addition made by the Assessee to its capital account. It is stated that the Assessee has failed to discharge the burden regarding the source from which the capital was introduced. 3. It is contended by the Revenue that during the assessment proceedings initiated under Section 143 of the Act, the Assessee was asked to furnish details regarding the net capital addition to the tune of Rs.24,50,91,663/with evidence. The learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder is as follows:- A. Details of Cash Surrendered Total Income Surrendered on 17.09.2010 on account of STCG 15,92,00,000/- Less: Amount seized out of Locker and Adjusted in Tax Demand. 70,00,000/- Balance 15,22,00,000/- Less: Amount seized out of Locker and adjusted in Tax demand 55,70,000/- Balance of Cash out of Surrendered Income (Total A) 14,66,30,000/- B. Details of cash consumed/deposited in bank out of above. Duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any. Rs. 9,02,95,000/- D. Less:- Drawings of the Assessee Rs.2,00,23,837/- Total addition to Capital Account (A+B+C-D) Rs.24,50,91,663/- 9. The ITAT recorded that the Assessee had surrendered Rs.15.22 crores as additional income during the previous AY 2011-2012 and duly paid tax thereon and this fact was not disputed by the AO. The Assessee stated that though the surrender was made in the previous assessment year, a sum of Rs.15 crores was only received in the AY under appeal and the said amount was thus introduced in the books of accounts in the AY under appeal. To this effect, the ITAT has noted that no adverse inferen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 12. The ITAT therefore, concluded that the Assessee has duly explained the source of cash deposits in its bank account as well as the addition made to the capital account. The ITAT noted that since the surrender of Rs.15.92 crores was made in the previous assessment year and tax was duly paid thereon, the said amount introduced in the accounts in the current assessment year would not be taxable. The ITAT therefore concluded that the Assessee has sufficiently explained the total addition to its capital account of Rs.24,50,91,663/- and deleted the said addition. 13. The learned counsel for the Appellant has not disputed the findings of the ITAT that in the remand report there was no adverse inference drawn by the AO with respect to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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