Mool Chand Aggarwal Vs ACIT (ITAT Delhi)
CIT(A) cannot disbelieve cash book only on the ground that ‘generally individuals do not maintain cash book and it is not mandatory to maintain cash book for the individual’.
The Income Tax Appellate Tribunal (ITAT) Delhi recently provided relief to Mool Chand Aggarwal against the order of the Learned Commissioner of Income Tax (Appeals), New Delhi. The case, pertaining to the assessment year 2018-19, involved an addition of Rs. 10,68,100 under section 69A of the Income Tax Act, 1961.
Key Points of the Case:
- Arbitrary Addition: The appellant contested the arbitrary addition made by the Assessing Officer (AO) and confirmed by the Commissioner of Income Tax (Appeals) (CIT(A)). It was argued that the cash found during a search and seizure operation belonged to various family members, as supported by the cash book maintained by the appellant.
- Cash Book as Evidence: The appellant provided a cash book during the assessment proceedings to substantiate that the cash seized belonged to family members. However, the CIT(A) disbelieved the cash book, stating that individuals generally do not maintain such records. Despite this, the ITAT ruled in favor of the appellant.
ITAT’s Verdict: After thorough examination of the evidence and legal arguments, the ITAT concluded that the authorities erred in disbelieving the cash book provided by the appellant. The tribunal noted that the cash book was not disputed by the AO and contained entries related to various family members. Therefore, it deemed the addition made by the AO and upheld by the CIT(A) as baseless and deleted the same.
