Sushil Bansal Vs ACIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi Bench has delivered a split verdict in two appeals filed by Sushil Bansal against orders from the CIT(A) for Assessment Year (AY) 2019-20. The appeals contested an assessment order that added Rs. 88 lacs as unexplained cash and a subsequent penalty levied under Section 271AAB of the Income Tax Act, 1961. The Tribunal’s decision hinges on the peculiar facts of the case, particularly the immediate disclosure of cash found in a locker during a search operation.
Background of the Case
A search and seizure operation under Section 132 of the Act was conducted on December 1, 2018, at Faquir Chand Lockers and Vaults Pvt. Ltd. Group. As Sushil Bansal held a locker there, it was also covered by the operation. During the search, a sum of Rs. 88 lacs in cash was found and seized from the assessee’s locker.
Crucially, the assessee immediately offered this Rs. 88 lacs for taxation, admitting it as income taxable under Section 69A (unexplained money). However, despite this admission, the assessee faced a significant challenge: the seized cash left him without liquid funds to pay the requisite taxes. Consequently, when filing his return of income, he could not include the Rs. 88 lacs because the income tax portal would not accept a revised return without tax payment.
