TMI Blog2023 (10) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A) that if at all the cash is kept at residence, then the same must be kept separately and not mixed with cash of the family members cannot be accepted. Estimation of expenses is also without any basis. Hence the argument put forth by the CIT(A) that cash do not belong to the company and some expenses must have been incurred is not tenable and hence rejected. Owing to the availability of the cash in the accepted books of accounts of the company as well as accepted statement affairs filed by the family members, we hold that no further addition is required on account of cash found at the premises. Appeal of the assessee allowed. - Sh. C. M. Garg, Judicial Member And Dr. B. R. R. Kumar, Accountant Member For the Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his case, the case was picked up for compulsory scrutiny and notice under section 143(2) of the Act was issued on 26.09.2019 and income was assessed at Rs. 3,43,36,450/- vide order dated 27.12.2019. Proceedings before the AO: 5. During the search and seizure operation cash amounting to Rs. 48,66,000/- was found from the residential premises of the assessee at C-179, C-Block, Phase-I, Vivek Vihar, New Delhi-110095. The assessee in his statement on oath recorded u/s 132(4) during the course of search and seizure operation was asked to explain the source of cash of Rs. 48,66,000/- found in search and seizure operation. In response the assessee stated that the cash of Rs. 48,66,000/- was the collection money received from agents clien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee failed to furnish cash flow statement from 01.04.2017 to 10.08.2017 i.e. the date of search. The assessee also failed to establish that the cash belonged to business receipt of the company namely Easy Trip Planners Pvt. Ltd. through some tangle documents. The AO observed that considering the family of the assessee consisting of 8 adult members some cash being held by each family member considering their income level and status cannot be ruled out and accordingly allowed Rs. 60,000 cash in hand of each family member which came to Rs. 4,80,000/- (60,000 X 8) and balance amount of Rs. 43,86,000/- was disallowed by treating the same as unexplained money under section 69A of the Income Tax Act. 6. Aggrieved, the assessee filed appeal befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.2017 till 10.08.2017 Rs. 10,00,000/- Cash in and as on 10.08.2017 Rs. 29,70,141/- Holding thus, the ld. CIT(A) restricted the addition to Rs. 18,95,859/- and the balance amount of Rs. 24,90,141/- is deleted. 8. Aggrieved, the assessee filed appeal before us for deletion of Rs. 18,95,859/-. 9. During the arguments, the ld. AR reiterated the submissions taken before the ld. CIT(A) which are as under: The cash found during search belongs to the family members of the appellant as well as Easy Trip Planners Pvt. Ltd., the company founded by the appellant. The details of cash belonging to the family members of the appellant and held by them as on 31.3.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o substantiate the fact that the A.O. did not draw any adverse inference in respect of cash in hand as on 31.03.2017 which was shown by family members in their respective statement of affairs as on 31.03.2017 and filed before the A.O. during the course of block assessment proceedings. The AO therefore was not justified in not accepting this submission of the appellant more so in view of the fact that the cash balances of the family members as on 31.03.2017 were verified by the AO during course of block assessment proceedings in their cases. Further, the appellant is a founder director of Easy Trip Planners Pvt. Ltd. Office of the company is situated at 223 Patparganj Indl. Area, Delhi- 110092. The distance of the office from the resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lained u/s 69A is not justified since the complete reconciliation of cash of Rs. 48,66,000/- found during the search from the premises of the appellant is as under:- Cash belonging to the family members Rs. 39,70,141/- Cash in hand as per books of Easy Trip Planners Pvt. Ltd. Rs. 9,00,231/- Total Rs. 48,70,372/- Since the cash found during the course of search is fully explained as given above, the addition of Rs. 43,86,000/- may kindly be deleted. 10. The ld. DR relied on the order of the ld. CIT(A). 11. Heard the arguments of both the parties and perused the material available on record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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