NARESH VUDAYAGIRI ,HYDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-7(1), HYDERABAD

Coming to the assessee's sole substantive issue of correctness of 69A unexplained cash seized addition of Rs.37.35 lakhs made in the course of assessment dt.31.12.2018 and upheld in the lower appellate proceedings, we note that the CIT(A)’s detailed discussion to this effect reads as under :

Learned counsel vehemently contended during the course of hearing that it is clear from a perusal of the assessee's income tax return, computation and balance sheet that the impugned sum represents the accumulated balances as well as cash sales realized in liquor business.

The Revenue has chosen to place strong reliance on the CIT(A)’s foregoing discussion.

We have given our thoughtful consideration to rival pleadings and find no reason to accept either party’s foregoing submissions in entirety. This is for the reason that neither the assessee has been able to reconcile the liquor stock in trade with the sales / profits realized therefrom vis-à-vis the cash seized nor the department could altogether rebut the foregoing prima facie evidence to this effect. Faced with this situation, we deem it

This assessee's appeal is partly allowed in above terms.