Nayaka Ramanna Rameshbabu Vs JCIT (ITAT Bangalore)
Bengaluru ITAT Upholds ₹23 Lakh Addition: Story of Farmers Leaving Cash in Car Found Incredible
The Bengaluru ITAT upheld the addition of ₹23 lakh under section 69A after cash was found in the assessee’s vehicle during the 2018 Karnataka Assembly elections. The assessee contended that the cash belonged to certain farmers to whom he had merely offered a lift and that he had claimed ownership only of ₹84,500 before the criminal court. He argued that section 69A applies only where the assessee is found to be the owner of the money and relied on the absence of any cash withdrawals, books of account or other evidence linking him to the seized cash.
The Tribunal, however, held that the explanation lacked credibility. It observed that the assessee failed to furnish the identity, addresses or contact details of the alleged farmers and did not produce them before any authority, despite several opportunities and the passage of nearly eight years. The claim that someone would leave ₹23 lakh in another person’s vehicle and never return to claim it was found to be highly improbable. The statutory presumption under section 132(4A) remained unrebutted, and a mere denial of ownership was held insufficient to discharge the burden cast upon the assessee. Accordingly, the Tribunal confirmed the addition of ₹23 lakh under section 69A and dismissed the appeal.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
