Taiyab Khan Vs ACIT (ITAT Jaipur)
ITAT Jaipur held that when the cash found in books are more then physically found no further addition is required to be made in the hands of the assessee. Accordingly, addition towards unexplained cash set aside.
Facts- A survey u/s 133A was conducted at the business premises of the assessee on 27.09.2016.During survey proceedings, physical cash was found at Rs.13,07,300/- which was not verifiable from the Books of Accounts whereas as per Cash Book (found during the course of survey proceedings) there was negative cash of Rs.11,26,135/-. In this respect, the assessee replied (during his statement recorded while survey proceedings) that the Books of Accounts were not up to date, therefore, it was not possible to the cash found be verified. While survey proceedings, it is also noticed that the receipts of the hospital business were entered up to 31.08.2016 & expenses were entered up to 31.07.2016 but any expenses made in cash were not written till the date of survey i.e., 27.09.2016. This proves that the assessee manipulates his Cash Books & booked bogus expenses by arranging pre-dated bills/vouchers. In this situation, the cash found, amounting to Rs.13,07,300/-, remained unverifiable & hence considered to be added into the total income of the assessee. In the light of that observations Rs. 13,07,300/- was added into the total income of the assessee us/ 68 r.w.s. 115BBE & penalty proceedings u/s 271AAC(1)were initiated separately.
