Held that\u00a0 cash discovered not related to year in question and\u00a0 declaration under Pradhan Mantri Garib Kalyan Yojana not in relation to any specific assessment year\u00a0 hence\u00a0 cannot be\u00a0 relied on for making addition.\u00a0 Satisfaction note not fulfilling conditions for years beyond six years prior to search hence the\u00a0 assessments for those years invalid. \u00a0Final accounts prepared by Special Auditor to be taken into consideration and addition can be made only on basis of\u00a0 incriminating materials found during search . No scope for estimation of\u00a0 undisclosed income on ad-hoc basis by extrapolation for any year . Incriminating materials qua each assessment year is mandatory . Purchase from farmers and agricultural market produce committee through bought notes ,no question of\u00a0 treating as bogus purchases for want of\u00a0 documents .\u00a0 Reliance on statements recorded under mistake and retracted cannot be relied on\u00a0 hence the\u00a0\u00a0 additions is\u00a0 not sustainable. Evidence collected during course of\u00a0 search proving entities were separate legal entities and complied with all statutory laws\u00a0 addition is uncalled for. Failure to provide details of\u00a0 working of\u00a0 unaccounted expenditure\u00a0 additions is\u00a0 not sustainable .\u00a0 \u00a0Regular income in return filed subsequent to search . Net profit according to unaudited seized account cannot be taxed once again in assessment as undisclosed income . \u00a0Unregistered agreement of sale between two companies found in search of\u00a0 premises of\u00a0 one of\u00a0 them. Assessee\u00a0 is not party to agreement nor signing it as authorised signatory.\u00a0 Company separate legal entity hence the\u00a0\u00a0 transactions of\u00a0 company not to be considered for taxation in hands of\u00a0 assessee as no case made out for lifting corporate veil. Interest on borrowed capital is allowable as deduction. Cash balance as per books of account , addition cannot be made as unaccounted cash . Loose sheet found in search not containing noting with regard to certain sum .No Evidence found during search regarding receipt of\u00a0 cash or\u00a0 undisclosed investment or\u00a0 asset\u00a0 Assessee disclosing details of\u00a0 demonetised currency deposited in bank and source and taxability of\u00a0 demonetised currency considered in assessment . Enhancement not warranted . (AY.2009-10 to 2019-20)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 153A: Assessment-Search-Satisfaction note-No incriminating document-Loose sheets-Unaccounted cash-Incriminating material for each year is mandatory-Addition is deleted. [S. 69C , 132 (4), 153D] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44854","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bFs","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44854"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44854\/revisions"}],"predecessor-version":[{"id":44855,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44854\/revisions\/44855"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}