Suresh Chand Goyal Vs ACIT (ITAT Delhi)
Summary: The Delhi Bench of the Income Tax Appellate Tribunal allowed the appeals of Suresh Chand Goyal and Meera Goyal for Assessment Year 2023-24, deleting additions made under Section 69A of the Income-tax Act, 1961 in respect of cash found during a search conducted in the Goyal Group.
The search was conducted on 10.01.2023. Cash of Rs.1,10,00,000/- was found in Locker No. 542 maintained with South Delhi Vaults & Credits Ltd., while cash of Rs.14,50,000/- was found at B-45, Maharani Bagh, New Delhi. Additions of Rs.1,10,00,000/- were made in the hands of Meera Goyal and Rs.10,00,000/- in the hands of Suresh Chand Goyal. Cash was also found at various other entities of the Goyal Group. In aggregate, cash of Rs.3,74,65,604/- was found, out of which Rs.3,59,99,000/- was seized.
The assessees explained that the cash found and seized formed part of duly recorded cash balances maintained by various entities of the Goyal Group, particularly M/s Goyal Capital MG Gases Pvt. Ltd. They relied upon cash books, audited financial statements, ledgers, reconciliation and other supporting documentary evidence. According to the assessees, aggregate cash-in-hand available with the Goyal Group as on the date of search was Rs.4,10,60,052/-, which was sufficient to explain the entire seized cash of Rs.3,59,99,000/-.
The Assessing Officer did not accept this explanation and relied upon Tally data available during the search, which reflected cash-in-hand of only Rs.54,20,908/- in the books of certain group entities. The AO consequently restricted the cash attributable to M/s Goyal MG Gases Pvt. Ltd. to Rs.8,54,320/- instead of Rs.3,69,02,334/- and denied credit for the balance while making additions under Section 69A in the hands of the appellants and other group concerns.
Before the Tribunal, the assessees contended that the approach was inconsistent because M/s Goyal MG Gases Pvt. Ltd. had itself been assessed pursuant to the same search and the very same AO had accepted cash-in-hand of Rs.3,69,02,334/- as on the date of search. It was submitted that the Tally data relied upon during the search did not contain complete financial records of all group concerns because some premises could not be searched and the corresponding records were therefore unavailable during the search.
The Tribunal noted that the same issue had already arisen in the case of another Goyal Group entity, Faridabad Implements Pvt. Ltd., in ITA No. 4591/Del/2025. The co-ordinate bench had considered cash of Rs.69,99,000/- found in a locker, out of which Rs.24,58,590/- was seized, and had held that the availability of cash-in-hand of Rs.3,69,02,334/- in the books of M/s Goyal MG Gases Pvt. Ltd. had never been disputed by the Department. Accordingly, credit for such recorded cash was required to be granted while explaining the cash found during search. The co-ordinate bench had consequently deleted the addition of Rs.25,58,590/- under Section 69A.
Following that reasoning, the Tribunal accepted the assessees’ explanation that the cash-in-hand of Rs.3,69,02,334/- in M/s Goyal MG Gases Pvt. Ltd. had been accepted as duly recorded in its books and was therefore explained. Since the issue was also covered by the decision in the case of the group entity, the Tribunal held that the additions made in the hands of Suresh Chand Goyal and Meera Goyal were liable to be deleted. Accordingly, both appeals were allowed.
Cases Discussed
- Faridabad Implements Pvt. Ltd. — ITA No. 4591/Del/2025, co-ordinate bench decision concerning cash found during the same search action and credit for recorded cash-in-hand of M/s Goyal MG Gases Pvt. Ltd.
FULL TEXT OF THE ORDER OF ITAT DELHI
These appeals preferred by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-30, New Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in appeals filed before him against the orders of the ld. Assessing Officer (hereinafter referred to as the Ld. AO, for short) passed u/s 143(3) of the Income-tax Act, 1961 (hereafter referred to as ‘the Act’). Further details of the orders of the lower authorities are as under: –
| ITA No. & AY | Ld. FAA who passed the appellate order | Appeal No. & Date of order of the Ld. FAA | AO who passed the assessment order & Date of order |
|---|---|---|---|
| 5716/D/25 2023-24 |
CIT(A)30 New Delhi |
DIN No : ITBA/APL/M/250/2025-26/1080185221(1) Dated: 30.08.2025 |
ACIT, CC-31 New Delhi Dated 27.03.2025 |
| 5732/D/25 2023-24 |
CIT(A)-30 New Delhi |
DIN No : ITBA/APL/M/250/2025-26/1080514009(1) Dated: 10.09.2025 |
ACIT, CC-31 New Delhi 28.03.2025 |
2. The two cases heard together as they involved common question of law on facts and therefore, are adjudicated together.
3. The facts are that during the course of search conducted in Goyal group on 10.01.2023 the case of Rs.1,10,00,000/- was found in Locker No. 542 maintained with South Delhi Vaults & Credits Ltd. and a cash of Rs.14,50,000/- was found at B-45, Maharani Bagh, New Delhi against which an addition of Rs.1,10,00,000/- was made in the hands of appellant Meera Goyal and Rs. 10,00,000/- in the hands of Suresh Chand Goyal. Apart from this cash the cash was also discovered during the course of search from various entities of Goyal group, thus, the total cash of Rs.3,74,65,604/- was found, out of which Rs.3,59,99,000/- was seized.
4. The case of assesse is that the cash seized from two assessee’s forms part of the total cash found and seized in the search. During the assessment proceedings assesse explained that the cash found and seized forms part of the duly recorded cash balances available with various entities of Goyal group, particularly M/s Goyal Capital MG Gases Pvt. Ltd. Assessee has tried to substantiate the same by cash book, audited financial statements, ledgers, reconciliation and other supporting documentary evidences. Assessee tried to demonstrate that aggregate cash in hand available with Goyal group as on the date of search was of Rs.4,10,60,052/- which was sufficient to explain and cover the entire cash found and seized aggregating to Rs.3,59,99,000/-, of which the cash found from the appellant constituted a small portion.
5. The AO, however, disregarded the aforesaid explanation and relied solely upon the tally data available during the course of search, which reflected cash-in-hand of only Rs. 54,20,908/-in the books of certain group entities. Consequently, the AO restricted the cash attributable in the hands of M/s Goyal MG Gases Pvt. Ltd. to Rs. 8,54,320/- as per tally data instead Rs. 3,69,02,334/- and denied credit for the balance cash while making additions under Section 69A in the hands of the Appellants and other group concerns.
6. Ld. Counsel has submitted that this approach is patently inconsistent, as M/s Goyal MG Gases Pvt. Ltd. was itself subjected to assessment pursuant to the same search action and the very same AO accepted the availability of cash-in-hand amounting to Rs. 3,69,02,334/- as on the date of search. It is submitted that in doing so, the AO overlooked the fact that the said tally data did not capture the complete financial records of all the group concerns, as some premises could not be searched and the financial records pertaining thereto were missed during the search proceedings. Therefore, the said data did not reflect the aggregate cash-in-hand available with the Goyal Group as on the date of the search.
7. In this context, we find that as this issue came before this Tribunal in case of another group entity Faridabad Implements Pvt. Ltd., a group entity of the Goyal Group, in ITA No. 4591/Del/2025., the co-ordinate bench, while adjudicating this issue, arising from the same search action, considered the case where cash amounting to Rs. 69,99,000/-was found, out of which Rs. 24,58,590/- was seized, whereas credit for the balance amount was granted on the basis that the same stood reflected as cash-in-hand in the Tally data relied upon by the AO. After examining the facts, the co-ordinate bench has held that the availability of cash-in-hand amounting to Rs. 3,69,02,334/- in the books of M/s Goyal MG Gases Pvt. Ltd. had never been disputed by the Department and, therefore, due credit thereof was required to be granted while explaining the cash found during the course of the search. The relevant findings of the bench are reproduced below:
2.Brief facts of the case are that assessee is a Private Limited company and filed its return of income on 17.10.2023 declaring total income of INR 5,63,770. A search and seizure action was carried out u/s 132 on 10.01.2023 in the case of Goyal Gases Group of cases of which assessee is one of the members and therefore, the proceedings u/s 153A were initiated in the case of the assessee. Notice u/s 143(2) was issued on 24.06.2024 followed by various notices issued u/s 142(1) along with questionnaires from time to time which were duly replied. AO observed that during the course of search, one Locker No.1201 maintained with South Delhi Vaults and Credits Ltd., D-1097, New Friends Colony, New Delhi-110025 was found in the name of assessee wherein total cash of IN 69,99,000/- was found and seized.
11.”Ld. CIT(A) has failed to appreciate this anomaly in the assessment order while confirming the addition. Looking to the entirety of the facts and further considering the fact that in the case of M/s. Goyal MG Gases Pvt. Ltd., availability of total cash in hand as on the date of search of INR 3,69,02,334/- as per its cash book has not been doubted as could be seen from the assessment order of M/s. Goyal MG Gases Pvt. Ltd. placed at pages 222 to 294 of Paper Book. Once no addition whatsoever, was made on account of excess cash in the case of M/s. Goyal MG Gases Pvt. Ltd. therefore, the cash found in the locker of assesse as out of such cash in hand of M/s. Goval MG Gases Pvt. Ltd. of INR 3,69,02,334/- should be accepted and due credit of the same in the hands of the assessee should be allowed. In view of these facts, we delete the addition of IN 25,58,590/- made u/s 69A of the Act. All the grounds of appeal taken by the assessee are thus allowed.
12.In the result, appeal of the assessee is allowed.”
8 In view of the aforesaid facts and circumstances, we are inclined to accept the explanation of assessee that once the cash-in-hand of M/s Goyal MG Gases Pvt. Ltd. amounting to Rs. 3,69,02,334/- has been accepted as duly recorded in its books of account and, therefore, explained and also covered by the aforesaid decision in case of group entity, the additions made there under in the case of two assessee before us, are also liable to be deleted. Accordingly the appeals are allowed.
Order pronounced in the open court on 19.08.2026
