Law:

Section:

I. Section 69A of the Income-tax Act, 1961 - Unexplained moneys - Assessment year 2002-03 - Where cash found during survey was duly entered in books of account of assessee, said amount could not be treated as assessee's income from undisclosed sources [In favour of assessee] During course of survey at assessee's business premises certain cash was found. The assessee explained that said cash was on account of sale of bardana which was duly entered in the books of account. The Assessing Officer did not accept assessee's explanation and made addition. On appeal, the Commissioner (Appeals) deleted the addition. The Tribunal upheld the order of the Commissioner (Appeals). Held that the assessee's explanation had been accepted that cash of Rs. 10 lakhs found during the course of survey were on account of realization from above sale of bardana of Rs. 10 lakhs. Thus, the amount of Rs. 10 lakhs found during the course of survey was duly entered in the books of account and the same did not remain unrecorded and it was not unaccounted. Therefore, the Tribunal was justified in deleting the addition. II. Section 69 of the Income-tax Act, 1961 - Unexplained investments - Assessment year 2002-03 - Where sale of old bardana mentioned in loose paper found during survey was subsequently recorded in books of account and computation of income included such sale, amount of such sale could not be treated as unexplained moneys [In favour of assessee] During the survey carried on in the business premises of the assessee two slips were found mentioning about the sale of bardana of Rs. 10 lakhs. The assessee surrendered the said amount for taxation. Before the Assessing Officer, the assessee explained that the note relating to the sale of bardana of Rs. 10 lakhs found in the office premises was not submitted by the accountant; and that sales were subsequently recorded in the books of account and therefore, no addition could be made on account of alleged unaccounted sale. The Assessing Officer rejected the assessee's explanation and made addition. On appeal, the Tribunal deleted the addition. Held that the Tribunal had found that the sale of bardana was entered in the books of account…

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