TMI Blog2022 (11) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... nue has not brought any cogent basis for rejecting the contention of the assessee. Accordingly we hold that there cannot be any addition to the total income of the assessee with respect to the cash found during the search proceedings. Hence, the ground of appeal of the assessee is hereby allowed. Addition mad on the basis of admission made by the assessee in the statement furnished u/s 132(4) - HELD THAT:- There were various land transactions carried out as evident from the seized documents but we note that such land transaction had been considered by the revenue in the hands of Smt. Parvatiben in the assessment which can be verified from the assessment order of and the order of the learned CIT-A placed - In view of the above and after considering the facts in totality, we are of the view that no addition based on admission is warranted in the given facts and circumstances. Hence, we set aside the finding of the learned CIT-A and direct the AO to delete the addition made by him. Hence, ground of appeal of the assessee is hereby allowed. - ITA No. 376/Rjt/2017 - - - Dated:- 16-11-2022 - Shri Waseem Ahmed, Accountant Member And Shri T.R Senthil Kumar, Judicial Member Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any books of accounts. ii. There were various seized documents bearing numbers annexure A-2, containing the information about the land transaction deals in cash. About the same, one of the family member of the assessee Shri Tarachand B Ramchandani admitted that such cash relating to the land transaction deal was not disclosed in the income tax return. 4.1 In view of the above, the AO treated the amount of cash found during the search and seizure operation amounting to ₹16.97 Lacs as unexplained cash and added the same to the total income of the assessee. 5. Aggrieved assessee preferred an appeal to the learned CIT-A. 6. The assessee before the learned CIT-A submitted that the cash found in the course of search and seizure operation was duly accounted for in the books of accounts of Smt. Chandrikaben Ramchandani which was also disclosed in the income tax return filed by her in different assessment years. As per the assessee, all these income tax returns, disclosing the amount of cash in hand were filed much before the date of search. According to the assessee, all the details were furnished to the AO during the assessment proceedings in response to the latter dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ource of withdrawal from the bank, copy of bank statements etc. of Smt. Chandrikaben Ramchandani were filed before the AO or in the appeal proceedings. In view of the above, it was evident that the explanation of the assesse was false and misleading. Accordingly, the ground of appeal is dismissed. 8. Being aggrieved by the order of the learned CIT-A, the assessee is in appeal before us. 9. The learned AR before us filed a paper book running from pages 1 to 76 and contended that cash in hand was duly disclosed by the assessee in the return of income of his wife namely Shrimati Chandrikaben Ramchandani. The learned AR in support of his contention drew our attention on the returns of income, computation of income, balance sheet, profit and loss account and capital accounts in the case of Shrimati Chandrikaben Ramchandani for the period from the assessment years 2008-09 to 2011-12 which are placed on pages 45 to 58 of the paper book. 10. On the other hand, the learned DR vehemently supported the order of the authorities below. 11. We have heard the rival contentions of both the parties and perused the materials available on record. Admittedly, the cash was found durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011-12 of Shrimati Chandrikaben Ramchandani are placed on pages 45 to 58 of the paper book wherein the availability of cash in her hands was duly disclosed. None of the authorities below has pointed out any iota of defects in the details furnished by the assessee before them. As such, it seems to us that the assessee has duly discharged the onus about the cash found during the course of search and seizure operation and the onus now shifted upon the revenue to disprove the contention of the assessee based on the tangible materials. But we note that the revenue has not disproved the contention of the assessee except making a statement by the learned CIT-A that all the documents were prepared to mislead the AO and likewise these documents were prepared afterthought. However, in our considered view the revenue has not brought any cogent basis for rejecting the contention of the assessee. Accordingly we hold that there cannot be any addition to the total income of the assessee with respect to the cash found during the search proceedings. Hence, the ground of appeal of the assessee is hereby allowed. 12. The 2nd issue raised by the assessee is that the learned CIT-A erred in confirmi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unaccounted income was not based on the seized incriminating material in the possession of the AO. His; contention is purely devoid of any substance. 17. Being aggrieved by the order of the learned CIT-A, the assessee is in appeal before us. 18. The learned AR before us contended that the assessee vide letter dated 14 September 2012 before the investigation wing has clearly stated that income of ₹1 crore has been admitted to be disclosed before the verification, crosschecking and proper technical analysis of the seized documents. The learned AR in support of his contention drew our attention on pages 59-60 of the paper book where the latter dated 14 September 2012 furnished to the investigation wing was placed. 18.1 It was also submitted that the land transaction deals recorded in the seized documents bearing Annexure A-2 were representing the transactions which were duly disclosed in the books of accounts of the respective family members. Furthermore, there was no addition of whatsoever made by the AO based on the documents seized bearing No. Annexure A-2. 18.2 The learned AR also submitted that the re-traction statement was filed after duly execution of the sw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice of the Board where assessees have claimed that they have been forced to confess the undisclosed income during the course of search and seizure and survey operations. Such confession, if not based upon credible evidence, are later retracted by the concerned assessee while filing returns of income. In these circumstances, such confessions during the course of search and seizure and survey operations do not serve any useful purpose. It is, therefore, advised that there should be focus and concentration on collection of evidence of income which leads to information on what has not been disclosed or is not likely to be disclosed before the Income Tax Department. Similarly, while recording statement during the course of search and seizure and survey operations no attempt should be made to obtain confession as to the undisclosed income . Any action on the contrary shall be viewed adversely. Further, in respect of pending assessment proceedings also, Assessing Officers should rely upon the evidences/materials gathered during the course of search/survey operations of thereafter while framing the relevant assessment orders. 20.3 It is also pertinent to note that the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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