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TMI Blog2022 (11) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... oks of accounts stated to have been kept with the Accountant, nor disclosed the password of the accounting package nor disclosed the factory premises where the balance cash of Rs. 1,71,59, 105/- was stated to have been kept. 4. The Learned CIT(A) erred in holding that no specific questions were put to the assessee as to cash balance vis-à-vis availability without going into facts of the case and without going into the statement of the Directors recorded u/s 132(4 wherein the question of cash balance and whereabouts of cash was rightly put before the Deponent. 5. The CIT(A) ought to have appreciated that the AO considering the surrounding circumstances and applying the test of human probabilities has rightly treated the amount of cash of Rs. 1,70,50,000/- as unexplained cash credit u/s 69A of the I.T. Act. 6. The learned CIT(A) ought to have appreciated the spirit of Apex Court judgment in the case of Sumati Dayal v. CIT 214 ITR 801 (SC) wherein it has been laid down by Court that the apparent must be considered real until it is shown that there are reasons to believe that the apparent is not the real and that the taxing authorities are entitled to look into the surroun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d properly to the issues about stock, cash balance, fund/receipts and the manner to which the assessee group opted to take a total evasive approach. Subsequently, efforts were taken to verify by issuing summons to the assessee; however, the assessee did not furnish proper answers and whatever answers were all evasive and not the direct answers to the questions posted. Even during the course of proceedings of the block assessment, assessee has shown the same approach, instead of furnishing the documentary evidence required with relevant clarification, the assessee has been writing letter after letter and arguments. On all the occasions, the assessee has been giving replies like, 'notices issued are not applicable to our case' 'details already on record', 'details asked for are not required to be filed' etc. Moreover, despite giving several opportunities to the assessee to attend the proceedings, only on a few occasions attended and most of the time, whatever xerox copies of evasive replies wanted to file, have been filed by post only. With various excuses, the assessee was found to have been lingering the proceedings till the end. 5. During the course of Search and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09/12/2013 i.e. after date of search was the first time assessing authority question me vide his letter dated 09/12/2015 vide question no. 28 I have clarified in which I have clarified in my letter dated 18/12/2015 with regard to cash clarification. In which I have clarified there was cash was at factory (work place) at Golagally, Hyderabad. Further on 07/03/2016 I have again clarified to A.C. also. It was submitted that there was no question put to me by DDI on date of search. Further one of the director has informed DDI that cash was deposited in bank from 20/11/2013 to 25/1 1/2013 the statement recorded by DDI may be raid with. All the directors were never question on date of search. As such the cash was available as per cash book is explained by recorded evidence." 8.2 I have considered the assessment order and submissions of the assessee. It is accepted by the Assessing Officer in the order that cash balance as on 14.11.2013 was Rs.1,88,16,905 as per the accounts maintained in electronic form which was opened under Panchanama on 09/12/2013. Thereafter, the Assessing Officer proceeded to add the cash deposits made allegedly from the above cash balance available. The contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 09.12.2013. The ld.AR drew the attention of the Bench to Mahazarnama at page 2 of the Paper Book, wherein proceedings of the record which took place on 09/12/2013 were recorded, wherein it was mentioned about accessing the computer / books of accounts, including cash book was duly mentioned. The revenue had taken the printout of the cash balance / P&L A/c. It was submitted by the learned AR for the assessee that the available cash with the assessee as on 14.11.2013 was Rs.1,88,16,905/- and drew the attention of the Bench to Page 22 of the Paper Book. It was submitted that the cash was available on account of the sale took place on various dates prior to the search. 13. The learned AR also submitted that the assessee has provided all the details of the factory premises during assessment proceedings and even the assessee continued to be in possession of the factory premises after the initial part of the 3 years. Our attention was drawn to the statement of the rent summary placed at pages 44 to 47 of the Paper Book. It was submitted that it is obvious for the assessee not to keep the cash at the business premises, and it is always wise to keep the cash at safe premises. 14. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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