The Tax Publishers2023 TaxPub(DT) 5831 (Bang-Trib)



Lakshmi Gold Khazaanaa (P) Ltd. v. Dy. CIT

ITA No. 1048/BANG/2022

8 September, 2023

Assessee by: V. Chandrashekhar, Advocate

Revenue by: Neera Malhotra, Commissioner- Departmental Representative


Madhumita Roy, J.M.

The instant appeal filed by the assessee is directed against the Order dated 19-9-2021 passed by the learned Commissioner (Appeals)-2, Bangalore arising out of the Order dated 31-3-2015 passed by the learned Deputy Commissioner, Central Circle-1(4), Bangalore under section 153A read with section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for assessment year 2011-12 whereby and where under the addition of Rs. 50 Lakhs on account of unexplained cash under section 69 of the Act has been upheld.

2. Brief facts leading to the case is this that the appellant company engaged in the business of trading-retailers filed its return of income on 30-9-2011 declaring income at Rs. 2,28,67,060. Subsequently a search under section 132 of the Act was conducted in the group cases of M/s. Lakshmi Gold Palace & M/s. Lakshmi Gold Khazaanaa (P) Ltd. on 8-2-2013 and warrant was issued upon the assessee viz., M/s. Lakshmi Gold Khazaanaa (P) Ltd. Certain incriminating documents have been found and seized from the premises of the assessee. Consequently notice under section 153A dated 7-2-2014 was issued to the assessee and under a letter dated 24-3-2014, the assessee requested the authorities to treat the original return of income filed under section 139(1) dated 30-9-2011 as per the return filed in terms of the notice under section 153 of the Act to the tune of Rs. 2,28,67,060.

3. From the seized document, it was found that the appellant paid an amount of Rs. 50 Lakhs in cash to one M/s. Eureka Builders on 15-5-2010. The revenue relied upon the statement made by one Shri M.K. Ramakrishna, General Manager of the company in respect of such payment made to M/s. Eureka Builders is cash. The source of such cash payment was directed to be explained by the assessee, in reply whereof the assessee denied the fact of paying any cash to the said M/s. Eureka Builders and further stated that the statement of paying cash was only to rebut the claim of the said builder pursuant to the legal notice issued to the assessee for recovery of the said amount. The amount still existed as liability in the books of the appellant company. Such contention made by the appellant was, however, not found acceptable and the said amount of Rs. 50 Lakhs was added to the total income of the assessee by the learned assessing officer which was further confirmed by the learned Commissioner (Appeals). Hence the instant appeal before us.

4. Before the learned Commissioner (Appeals), the assessee submitted as follows:

(vi) The learned assessing officer in the assessment order at Para 5 stated as follows:

As per Annexure A/LGKPL/8, Page No. 62 contains the details of loan given by M/s. Eurekha Builders to M/s. Lakshmi Gold Khazaanaa (P) Ltd. As per this an amount of Rs. 50,00,000 was given to M/s. Lakshmi Gold Khazaanaa (P) Ltd. on 16-6-2010. As per Annexure A/LGKPL/8, Page No. 53 contains details of loan given by M/s. Eurekha Builders to Mr. K. P. Nanjundi. As per this the amount of Rs. 1,00,00,000 was given to K.P. Nanjundi on 27-11-2010.


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