Case Law Details
Hemant Samarataji Lohar Vs CIT (Appeals-54) (ITAT Mumbai)
The case involves an appeal by the assessee, Hemant Samarataji Lohar, against an order issued on 20.10.2023 by the Commissioner of Income Tax (Appeals) [CIT (Appeals)-54] for the Assessment Year (A.Y.) 2019-20. The assessee had filed his income tax return on 25.08.2019, declaring a total income of Rs. 13,43,340 after claiming a deduction of Rs. 1,83,502 under Chapter VI-A of the Income Tax Act, 1961. The return was initially processed under Section 143(1) of the Act.
Proceedings and Assessments:
The case attracted attention following a search on 15.10.2018 conducted at the premises of the Bhilosa Group, which implicated the assessee as well. Consequently, a notice under Section 143(2) of the Act was issued on 25.09.2020, to which the assessee responded with the necessary financial documents.
Upon review, the Assessing Officer (AO) found that the assessee had reported earnings from salary, rental income, and other sources. During the search, cash amounting to Rs. 4,82,275 and various pieces of gold and silver jewelry were discovered. The assessee initially claimed he could provide bills for the jewelry but failed to do so, leading to a show-cause notice regarding the undisclosed income represented by the cash and jewelry. In his response dated 29.04.2021, the assessee claimed that the cash was accumulated from various sources, including his and his wife’s savings, contributions for Art of Living programs, and funds from “Devvanshiya Malviya Lohar Samaj,” where he served as treasurer.
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