Chatru Vs DCIT (ITAT Jaipur)
ITAT Jaipur held that seized cash belongs to the firm and not of the assessee alone and hence invoking provisions of section 69A of the Income Tax Act in the hands of assessee misconceived. Accordingly, addition is directed to be deleted.
Facts- The assessee is an individual and derives income from sale of milk and agricultural income. Cash of Rs. 95,89,000/- was seized from Shri Chatru Lal Meena and Shri Chatru Lal Meena was unable to explain the source of cash found, the SHO, GRP Thana, Kota has seized the cash of Rs. 95,89,000/-and intimated to IT Department.
AO concluded that the source of the cash of Rs 95,89,000 which was seized by the GRP Police, remand unexplained in the hands of Shri Chatru Lal Meena and accordingly treated as unexplained money as per provision of section 69A and tax is charged as per provision of section 115BBE of the IT Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the cash was found belonging to the firm and not of the assessee alone and thus invoking the provision of section 69A in the hands of the assessee misconceived from the start of the cash found till the same is concluded and is without considering the statement and evidence placed on record. Thus, considering the contention raised before us supported by the detailed evidence, we do not find any reason to sustain the addition of Rs. 95,89,00,000/- and the same is directed to be deleted.
