Case Law Details
DCIT Vs Bindal Papers Mills Ltd. (ITAT Delhi)
ITAT Delhi held that mere reflection of unexplained cash in the books of accounts without any supportive documents is not valid ground for deletion of the addition by CIT(A). Accordingly, addition towards unexplained cash sustainable.
Facts-
The assessment proceedings initiated against the assessee, the representative of the assessee has participated in the assessment proceedings. The assessment order came to be passed on 17/12/2018 by making an addition of Rs. 1 crore seized from one Mr. Pankaj Goel on 05/06/2016 which is found to be unaccounted cash of the assessee company. Accordingly, the said cash has been treated as unexplained money and added to the Assessee’s total income u/s 69A of the Act. Further, the Ld. A.O. made disallowance of Rs. 6,23,081/-u/s 14A of the Act and computed the total income of the assessee at Rs. 1,06,23,081/-.
Aggrieved by the assessment order dated 17/12/2018, the assessee has preferred an appeal before the Ld.CIT (A). The Ld.CIT(A) vide order dated 03/07/2019 deleted the addition of Rs. 1 crore made on account of unexplained money u/s 69 of the Act.
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