During the survey proceedings in the premises of the Assessee, actual cash of Rs. 11,800/- was found as against the cash in hand of Rs. 18,00,312/- which was shown in the books of account and therefore, there was a shortfall to the tune of Rs. 17,88,512/- The Assessing Officer made addition under section 69C of the Act and also taxed the said amount under section 115BBE of the Act. The addition was affirmed by the CIT( A ). The question before the Appellate Tribunal was whether, based on the difference/shortfall between the actual cash found during survey proceedings and the cash shown in the books of account, the addition u/s 69C of the Act is warranted. Following the Judgement in ITO v. Kesarwani Sheetalaya (2019) 110 taxmann.com 415 (All.)(HC), and Sarang & Associates vs. DCIT (ITA No. 1227 to 1229/Mum/2012 decided on 21.03.2018, the Honourable Appellate Tribunal deleted the addition. (ITA No.2110/ Mum/ 2023 dt . 27 -9 -2023 )( AY. 2018 -19 )
Almech Enterprises v. ACIT ( Mum)( Trib) www.itatonline .org
S. 69C : Unexplained expenditure -Unexplained investment – Unexplained money – Survey – Cash found less than the amount disclosed in the books of account – Addition cannot be made as an unexplained investment. [ S. 69, 69A,115BBE , 133A, 145 ]