DCIT Vs Mayura Saria Pvt. Ltd (ITAT Raipur)
ITAT Raipur held that addition made on account of unexplained out of books cash transaction merely on the basis of certain information without cogent evidence or plausible reasoning has not substance to survive in eye of law. Accordingly, addition deleted.
Facts- The case involved herein is that addition of Rs.3,81,04,820/- was made by AO on account of alleged dubious and out of books transactions carried out by the assessee with M/s Sky Alloys & Power Pvt. Ltd. (SAPPL), which was subjected to Search & Seizure operation u/s 132 on 22.12.2021 and certain information qua such transactions are unearthed during the said Search operation.
CIT(A) partly allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the addition made on account of unexplained out of books cash transactions allegedly by the assessee on the basis of certain information, though, could not be substantiated by the revenue, in absence of any cogent evidence or plausible reasonings, have no substance to survive in the eyes of law. The addition was made based borrowed opinion thereby forming a preconceived notion and under the presumptive inferences, surmises and assumptions, which is not permissible under the mandate of law. In view of such observations Ld. CIT(A) had rightly deleted the addition of Rs.3,81,04,820/- made by the Ld. AO. In view of such observations, we do not find any plausible reason, material, contention or decision brought on record by the revenue, to dislodge the decision of Ld. CIT(A), therefore, the same does not call for any interference, accordingly, we uphold the same.
