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]
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
[Coram : Hon’ble Shri N.K. Choudhari, JM & Shri Gagan Goyal, AM]