Addition u/s 69A deleted as receipt of gifts in cash on various occasions is common in India

Jasmine Anand Vs ACIT (ITAT Delhi)

ITAT Delhi held that assessee belonging to upper higher strata of society receipt of gifts in the shape of cash “shaguns” on various occasions such as marriages, birthdays, anniversaries, birth of a child, auspicious festivals and other such occasions is common. Accordingly, addition towards unexplained money u/s 69A deleted.

Facts- A survey action u/s 133A of the Income Tax Act, 1961 was carried out on “U&I Vaults Pvt. Ltd.” on 16.11.2017. The locker which is in the name of the assessee and Jaswinder Kaur Anand has been searched by issue of warrant of authorization u/s 132. During the search, jewellery worth Rs.8,29,19,985/- was found and seized from the locker. Further, cash of Rs. 8,99,500/- was found & seized from the said locker.

In absence of any justification or documentary evidence regarding source of cash found in the locker it was treated as unexplained money and added to the total income of the assessee as per section 69A of the Income-tax Act, 1961.

CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.

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