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TMI Blog2024 (1) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of Rs . 75 ,30 ,137/- made u/s 68 of the Act ignoring the impounded documents seized from the business premises of M/s Omaxe Limited as Annexure A-4 (Page No . 87 to 91 and 97-100) clearly evidencing that the company M/s Omaxe Housing and Developers Ltd . was having Cash-m-hand as on 08.11.2016 was Rs. 2 ,66 ,863/- only (as per page nos. 87 to 91 and as per page no . 97- 100)? ii) Whether on the facts and in the circumstances of the case and in law the Ld. CIT(A) has erred in appreciating the facts that the assessee company failed to produce documentary evidence regarding amount payable on account of wages etc for which cash withdrawal was made? iii) Whether on the facts and in the circumstances of the case and in law the Ld . C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he contentions of the assessee and relied upon the report of the DDIT, Investigation and added back a sum of Rs.75 ,30,137/- (Rs.77 ,96 ,000 - Rs.2 ,66,863) u/s 68 of the Income Tax Act, 1961, assessing the income at Rs. 2,12,36 ,610/- . 6. Aggrieved, the assessee filed appeal before the ld. CIT(A) who deleted the addition. 7. Aggrieved, the revenue filed appeal before the ITAT. 8. During the hearing before us, the ld. DR relied on the order of the Assessing Officer and the ld. AR relied on the order ld. CIT(A). 9. Heard the arguments of both the parties and perused the material available on record. 10. Before the ld. CIT(A), the assessee reiterated the arguments taken before the Assessing Officer that the AO has stated that these impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not incorporate the cash balances as per the main cash book maintained at the corporate headquarters. 12. It was stated that the balances as per various cash books as on 08 .11 .2016 were as follows: 1. MCB Real Estate Rs. 75,34 ,385/- 2. Imprest- Omaxe Sonipat Plaza Comm Rs .2 ,66,863/- Total Rs. 78,01 ,248/- 13. The reasoning given by the AOfor making the addition is as under: * The cash withdrawals made by the assessee are not near the dates of cash deposits. I f the assessee had withdrawn cash for wage payments/deals, it is not understandable as to why such expenses were not incurred. The assessee company being a running concern, could not have mounted cash for so long. * The assessee has prepared cash books in such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing balance of R s.26,00,000/- as on 31 .03 .2016 . The ld. CIT(A) held that the AO has ignored the main cash book of the assessee and has considered only the site cash books in arriving at the figure of cash balance as on 08 .11.2016. The ld. CIT(A) held agreed that the existence of the main cash book cannot be denied since most of the bank transactions, whether deposits or withdrawals, have been routed through the main cash book, which is the reason why the main cash book has the bulk of cash balance and the AO has not cited any statement recorded or logical reasoning as to why the main cash book has been ignored. 15. After examination of the details, the ld. CIT(A) logically came to a conclusion that the cash deposited post demonetizati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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