Shri Avinash Singla Vs DCIT (ITAT Chandigarh)
In the case of Shri Avinash Singla vs. DCIT, the Income Tax Appellate Tribunal (ITAT) reviewed an appeal concerning an addition of Rs.6 lakh made for unexplained cash found during a search at the assessee’s residential premises. The search, conducted under Section 132(1) of the Income Tax Act, revealed Rs.10.72 lakh in cash. The assessee explained that Rs.4 lakh came from his son’s business, Avinash Agro Pvt. Ltd., and the remaining cash was from family savings and a gift from his brother. The Assessing Officer (AO) accepted part of the explanation but added Rs.6 lakh to the taxable income. The CIT(A) upheld this addition. However, the ITAT, after considering cumulative circumstances, such as the declaration of Rs.10 lakh by the assessee to cover irregularities and the nature of family savings, concluded that the source of the cash could be reasonably explained. It ruled that the AO had erred in confirming the addition and allowed the appeal, deleting the Rs.6 lakh addition.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
The assessee is in appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 17.06.2022 passed for assessment year 2019-20. Though the assessee has taken five grounds of appeal but his solitary grievance is that ld. CIT(A) has erred in confirming the addition of Rs.6 lacs which was added by the Assessing Officer on account of unexplained cash found at the residential premises during the course of search.
