Case Law Details
Narinder Singh Punihani Vs DCIT (ITAT Delhi)
Introduction: In a recent case, Narinder Singh Punihani Vs. DCIT, the Income Tax Appellate Tribunal (ITAT) Delhi delivered a noteworthy judgment, emphasizing that the absence of bills and invoices for wrist watches found during a search operation is not a valid reason for addition under Section 69A of the Income Tax Act. The case revolves around the assessment year 2019-20, where the assessee contested the addition of Rs.21 lakhs made by the Assessing Officer.
Detailed Analysis:
1. Background of the Case: The dispute arose during a search and seizure operation conducted on the assessee and family members. Jewelleries and three wrist watches were sent for valuation, with the watches valued at Rs.21 lakhs. The Assessing Officer, citing the absence of bills and vouchers, added the entire amount under Section 69A of the Income Tax Act.
2. Assessee’s Explanation: The assessee contended that the watches were purchased over time, predating the block period, and no bills or invoices were available. The assessee provided a cash flow statement and credit card transaction details to substantiate the availability of funds.
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