DCIT Vs Mehta Emporium Jewellers (ITAT Mumbai)
ITAT Mumbai held that addition under section 69A towards unexplained cash found during course of search cannot be sustained since reconciliation of cash with concerned sales invoices duly produced. Accordingly, appeal of revenue dismissed to that extent.
Facts- The assessee is a partnership firm engaged in trading of gold and diamond jewellery. The assessment was completed u/s. 143(3) of the Act, at the income of Rs. 1,50,67,413/- vide order dated 01.09.2021. Ld. AO made additions of Rs. 30,01,923/- on account of unaccounted sales and Rs. 75,00,000/- on account of unexplained cash u/s. 69A of the Act. CIT(A) allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that admittedly, requisite details were submitted before the investigation wing along with reconciliation of cash with concerned sale invoices. During the appellate proceedings, the assessee has furnished details sought in this regard along with supporting evidences. In the light of above, we are of the view that the decision of CIT(A) to delete the addition on account of cash sales amounting to Rs. 30,01,923/- is justified and no interference is called for on this issue. This ground of appeal is, therefore dismissed.
Held that AO has rightly invoked the provisions of section 292C of the Act to hold that the onus to explain the document is on the assessee which has not been adequately discharged. In the interest of justice, we, therefore, deem it appropriate to restore this issue to the file of Ld. CIT(A) for fresh adjudication after giving due opportunity to the assessee to explain the same. Needless to add, a report may be called from the Ld. AO along with forensic examination report, in case required, after the assessee submits his explanation. Appeal on this issue is, accordingly, allowed for statistical purposes.
