Case Law Details
Mukesh Gupta Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that addition with regard to unexplained payment unsustainable in the hands of the employee as employee merely handled the cash on behalf of the employer.
Facts- During the course of the search, cash to the tune of ₹4,66,73,200/- was found. in the premises of the assessee, Shri Mukesh Gupta. When questioned about the source of the said cash, the assessee stated that the cash lying in his residence was given to him by Shri Premchand Ashok Kamble (Mr. PAK), and Mr. PAK is the Proprietor of M/s. Unique Finance. Further, it was stated by the assessee that Mr. PAK was involved in various business activities but the exact details of the business activity from which the cash had come from were not known to him.
AO treated the unexplained payments as income of the assessee and made additions thereof.
Conclusion- We observe that it is fact on record that assessee is only an employee of M/s. Unique Finance and having no established source of income, except that he has handled the cash on behalf of Mr. PAK and it is also fact on record by the investigating authority as well as assessing authority that assessee has handled all the cash on behalf of Mr. PAK and he is one of the trusted employee of Mr. PAK. Therefore, it clearly indicates that assessee has no means to make such undisclosed payments and any addition has to be made only in the hands of his employer or the Assessing Officer has to bring on record a cogent material in support of making the addition that assessee has direct relationship with above said parties. Considering the fact on record it can only be presumed that assessee has acted on the behest of Mr. PAK only, therefore these payments are also to be added in the hands of the employer not in the hands of the employee, who does not have any means.
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