TMI Blog2023 (4) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case are identical to the facts of the case in the case of Ankit Biscuits (P) Ltd [ 2023 (3) TMI 1233 - ITAT HYDERABAD] we deem it proper to restore the issue to the file of AO with a direction to adjudicate the issue afresh in the light of the direction given in the case of Ankit Biscuits (P) Ltd and in the light of the declaration of additional income of Rs.100 crores by Mr. Ramesh Agarwal on behalf of all family members and the companies as additional income. Appeal filed by the assessee is allowed for statistical purposes. - ITA No.503/Hyd/2022 - - - Dated:- 25-4-2023 - Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member For the Assessee : Advocate Smt. S. Sandhya For the Revenue : Shri KPRR Murthy, CIT(DR) ORDER PER R.K. PANDA, A.M This appeal filed by the assessee is directed against the order dated 29.07.2022 of the learned CIT (A)-11, Hyderabad relating to A.Y.2019-20. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the order of the CIT (A) in confirming the addition of Rs.9,05,120/- made by the Assessing Officer u/s 69A of the I.T. Act. 3. Facts of the case, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook, aggregating to Rs.10,05,718/- and kept in the business premises of Disha Foods Pvt. Ltd. Smt. Kavita Agarwal, another director of Disha Foods, has a cash balance of Rs.7,27,613/- as on 15.11.2018, of which a sum of Rs.6,00,000/- was kept in the business premises of M/s. Disha Foods Pvt. Ltd., all aggregating to Rs.16,05,718/-. 5. It was submitted that the above mentioned facts are only in the knowledge of Sri Adarsh Agarwal, Director of M/s Disha Foods Pvt Ltd and it is not correct to rely on the statement of Sri Tikaram Sharma, cash assistant of M/s Disha Foods Pvt Ltd and expecting him to be in the knowledge of personal books of Sri Ashish Agarwal and Smt. Kavitha Agarwal, the Directors of the Company. It was argued that there was sufficient cash balance available as per the personal books of the individuals Sri Adarsh Agarwal and Sri Kavitha Agarwal, the Directors of the Company, that were maintained in regular course. It was accordingly claimed that the cash found during the course of search stands fully explained. 6. However, the Assessing Officer was not satisfied with the explanation given by the assessee by recording the following reasons: 4.5 As on the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee, in one way stated that 'sometimes the personal cash of the Directors/ Partners of various entities of the Group are kept at the business premises of the Group'. At the same time, the assessee also stated that Cash belong to business entities of the group reflected in their respective books of account was kept at the residence of the family members who are either Partners/ Directors. in such entities for safe custody. 4.11 Thus, there is no consistency in handling and keeping record of the cash by the assessee Company. Further, the assessee, in the explanation, stated that there is a cash Balance of Rs. 23,25,500/- as per Books of M/s Disha Foods Pvt Ltd. Adarsh Agarwal, Harsh Bakers and Kavita Agarwal as on 15.11.2018. However, during the search, cash of Rs. 16,03,550/- was only found and has not mentioned where the remaining amount was kept. Thus, the explanation given by the assessee is vogue. Hence, the claim of the assessee that the cash as per personal books of account are kept in the business premises of M/s Disha Foods Pvt Ltd., is not acceptable. 4.12 Notwithstanding the above, though the assessee was asked to substantiate the claim, he has not substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identical circumstances, the issue was set aside to the file of the Assessing Officer on the ground as to whether any statement of the Director of the assessee company was recorded and whether he was asked any question on the issue of availability of cash kept by various family members on the date of search or not. She submitted that since the facts of the instant case are identical to the facts of the case already decided by the Tribunal therefore, she has no objection if the matter is restored to the file of the Assessing Officer with similar direction. 11. The learned DR, on the other hand, heavily relied on the order of the CIT (A). He submitted that the CIT (A) has already granted substantial relief and there remains nothing to grant further relief. He accordingly submitted that the order of the CIT (A) should be upheld and the grounds raised by the assessee should be dismissed. 12. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned CIT (A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us by both sides. We find the AO in the instant case made addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,125/- the reasons of which have already been reproduced in the preceding paragraph. It is the submission of the learned Counsel for the assessee that an amount of Rs.5.00 lakhs was kept by Mrs. Greeshma Agarwal, wife of the Director Shri Vimal Agarwal, in the office premises out of the amount withdrawn by her from Nirmay Constructions LLP where she is a partner. It is also her submission that Smt. Greeshma Agarwal has sufficient source to explain the amount kept in the office premises of her husband Shri Vimal Agarwal and the same should not have been doubted merely on the ground that the Accountant of the company Shri S. Ganesh could not explain the discrepancy. 10. A perusal of the assessment order shows that the Assessing Officer made the addition basically only on the basis of statement of Shri S. Ganesh, Accountant of the assessee company recorded on 15.11.2018 wherein he was unable to explain the discrepancy. The relevant question and answer which has been reproduced by the Assessing Officer in the body of the assessment order is as under: Q4. I am showing you inventory of cash found with the cashier Sri Bodiga Venkatesh Goud as per which physical cash available ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
