M/S MIDAS NATURALS PVT. LTD.,LUDHIANA vs. DCIT, CC-1, LUDHIANA

The only ground raised in this appeal reads as under:

Facts of the case in brief are that the search and seizure operation was conducted on 31/08/2016 in the case of M/s AP Group of cases and the assessee company is an offshoot of M/s AP Refinery Pvt. Ltd. Jagraon. The A.O. asked the assessee to file its return of income by issuing the notice under section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘Act’). In response

Being aggrieved the assessee carried the matter to the Ld. CIT(A) who sustained the addition made by the A.O.

Now the assessee is in appeal.

Ld. Counsel for the Assessee at the very outset stated that an identical issue having similar facts has been adjudicated in favour of the assessee in ITA No. 1279/Chd/2019 for the A.Y. 2017-18 in the case of M/s A.P. Refinery Pvt. Ltd. Vs. DCIT, Central Circle-1, Ludhiana vide order dt. 16/10/2020 by the ITAT Chandigarh Bench ‘A’, Chandigarh. It was also stated that the assessee also belongs to the same group to which the aforesaid assessee i.e; M/s A.P Refinery Pvt. Ltd. Jagraon belongs, copy of the said order was furnished which is placed on record.

In his rival submissions the Ld. DR although supported the orders of the authorities below but could not controvert the aforesaid contention of the Ld. Counsel for the Assessee.

We have considered the submissions of both the parties and perused the material available on the record. It is noticed that an identical issue having similar facts has already been adjudicated by the ITAT, Chandigarh Bench ‘A’, Chandigarh vide order dt. 16/10/2020 in the aforesaid referred to case and the relevant findings have been given at para 14 of the said order which read as under:

We have heard both the parties. The issue before us relates to addition made to the income of the assessee on account of cash found short with the assessee. Cash short, at the most represents expenses / outgoings out of cash available with the assessee not accounted for in the books of the assessee. Such unaccounted expenses are sourced from cash available with the assesee. How therefore can they be treated or deemed to be income of the assessee u/s 69/69B/69C of the Act when the said sections deem investments/money, the source of which the assessee offers no explanation about, as income of the assessee . We therefore hold that there is no case for making any addition on account of cash found short with the assessee and the addition so made of Rs.9,06,522/- is directed to be deleted. So respectfully following the aforesaid referred to order dt. 16/10/2020 in the case of M/s A.P. Refinery Pvt. Ltd. Vs. The DCIT, Central Circle-1 Ludhiana, the addition of Rs. 1,07,282/- made by the A.O. and sustained by the Ld. CIT(A) is deleted.

In the result, appeal of the assessee is allowed.

"वभागीय ""त"न"ध, आयकर अपील"य आ"धकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File