Home Income tax Corporate Income tax Cash Found At The Time Of Search Can Be Explained By The Availability Of Cash With Different Companies

Cash Found At The Time Of Search Can Be Explained By The Availability Of Cash With Different Companies

0
Cash Found At The Time Of Search Can Be Explained By The Availability Of Cash With Different Companies
Delhi ITAT's Order for M/s Creamy Foods Ltd

Delhi Bench of Revenue Tax Appellate Tribunal (ITAT) dominated that the money availability with distinct companies is sufficient to elaborate on the money revealed on the time of the investigation.

The assessing officer assessed the 9 group references and companies in addition to accepted the in-hand money availability within the respective books of accounts, the bench of Astha Chandra (Judicial Member) and N.Ok. Billaiya (Accountant Member) noticed.

Therefore, sending the matter again to the Assessing Officer for money verification, already examined in the course of the evaluation order, could be pointless. Through the search and seizure operation, Rs. 2,65,31,500 in money was found at New Delhi premises, together with the Noida Workplace and its plant. Of this, Rs. 2,09,99,150 was seized.

The assessee was questioned about this money. Regardless of the assertion from the accountant, Shri Pradeep Mishra, no passable clarification or reconciliation with the cashbook was offered. Consequently, the Assessing Officer needed to think about the Rs. 2,65,31,500 as unexplained revenue, including it beneath Part 69A of the Revenue Tax Act.

Of their attraction to the CIT (A), the assessee clarified that the money found belonged to varied corporations or entities inside the SMC Group, and this money was duly recorded within the money books of these entities. The CIT(A) believed that different companies had been working from the identical location, with money balances not thought of in the course of the addition on the time of the search.

The division argued that the assessee solely offered money statements from group corporations and people to the CIT(A), who accepted these with out searching for a report from the Assessing Officer. Verification of those paperwork is critical, suggesting the problem be despatched again to the assessing officer.

Nonetheless, the tribunal noticed no have to recheck information already verified by the assessing officer, deeming it pointless and illogical to remand the matter for additional verification.

LEAVE A REPLY

Please enter your comment!
Please enter your name here