TMI Blog2018 (7) TMI 2340X X X X Extracts X X X X X X X X Extracts X X X X ..... t made out of the unaccounted income, and therefore, it was submitted that when the entire unaccounted income found during the search was offered as a part of the overall disclosure, the same cannot be added in the total income as undisclosed investment. HELD THAT:- It is required to be noted that the Tribunal has rightly observed that such negative balance was made on unaccounted income and when necessary entries were made in the books of accounts, it is bound to result in negative cash balance. We are in complete agreement with the view taken by the learned Tribunal. Considering the aforesaid facts and circumstances of the case and more particularly when the entire unaccounted income, which was found during the search, was offered as part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 132 of the Income Tax Act was carried out in the case of Mahek Group of Bhavnagar on 05/02/2009. A warrant of authorization under Section 132 of the Income Tax Act was also issued in the case of the assessee. The assessee filed the return of income for the year under consideration declaring the total income of Rs.3,68,18,066/-. During the course of assessment, the learned Assessing Officer noticed the negative cash balance in the cash book for the period between 01/04/2008 to 22/09/2008 and the learned Assessing Officer noticed that the maximum negative balance during the said period was (-) Rs.2,27,86,693/-. The assessee was asked to explain the reasons of the said negative balance. The assessee replied to the same, which was accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts. However, the assessee explained the same and submitted that such negative balance was on account of payment made out of the unaccounted income, and therefore, it was submitted that when the entire unaccounted income found during the search was offered as a part of the overall disclosure, the same cannot be added in the total income as undisclosed investment. It is required to be noted that the learned Tribunal has rightly observed that such negative balance was made on unaccounted income and when necessary entries were made in the books of accounts, it is bound to result in negative cash balance. We are in complete agreement with the view taken by the learned Tribunal. Considering the aforesaid facts and circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
