DCIT Vs Satish Kumar Agrawal (ITAT Raipur)
The present appeal preferred by the revenue against the order passed by CIT (A) who deleted addition made by the AO on account of money possessed by the assessee. Assessee is director of two companies which carried out businesses from Bilaspur but their registered office situated at Kolkata. On 23.08.2009 amount of Rs.1,00,50,000/- was seized by the GRP, Howrah at Howrah Railway Station. Warrant of authorization was issued by DIT (Inv) Kolkata u/s 132 (1) on 25.08.2009. Intimation of carrying huge cash was sent to IT department on the letter head of the companies in which assessee was a director. On 27.10.09, the CJM, Howrah ordered that the seized amount be released to the assessee after deduction of income tax of Rs.34 lacs. On 28.07.2011, the assessee filed his return at Rs.51,65,557/-. Assessee claimed that he was carrying cash for a deal for purchase of office at Kolkata for the companies at Bilaspur. He was called upon to provide the details of the person/party from whom the said property was to be purchased. Assessee explained that the said property was to be purchased from CP Verma whose complete correspondence address was yet to be collected and was made available to the department when the same was made available. AO observed that a perusal of the books of account (specifically cash book) of the companies, revealed that an amount of Rs.75 lacs and Rs.25 lacs respectively were given by both companies on imprest account to the assessee. Cash withdrawals from banks were debited in the cash books of the companies. Assessee also produced copy of cheques pertaining to the withdrawals and certificates of the respective banks supporting the said transactions. As the assessee had failed to prove the identity of the person from whom the subject property was to be purchased, the AO took view that no such person did exist. He also took view that information shared by the assessee with the department, regarding carrying of huge cash prior to finalization of the deal in itself pointed out to some kind of misrepresentation as the very nature of his act was very unusual. AO passed order u/s. 153A r.w.s. 143(3) made an addition of the entire amount of Rs.1 crore by treating the same as money earned by the assessee from his undisclosed sources u/s 69A.
