Shailendra Rameshchandra Rathi Vs ACIT (ITAT Mumbai)
ITAT Mumbai deletes ₹11.14 lakh “unexplained cash” addition—family cash & small gifts accepted as explained
During a search on 23-09-2021, ₹15,01,150 was found in the assessee’s locker. AO accepted only ₹1,533 as per books & treated balance as unexplained. CIT(A) partly accepted assessee’s explanation but denied credit for cash claimed to belong to his father (₹4 lakh) & wife (₹3.67 lakh), citing non-filing of returns.
Tribunal found this factual assumption incorrect-both had filed returns & maintained cash books showing those exact balances. Since the family lived together & evidence matched, treating the entire cash as assessee’s unexplained money was unjustified. Tribunal also accepted ₹3.46 lakh explained as accumulated small gifts received by family over years, noting no contrary finding from Revenue.
Held: Explanation was duly supported by records; selective rejection by CIT(A) was arbitrary. The entire ₹11.14 lakh addition was deleted.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present appeal has been filed by the assessee against the order dated 28.03.2024 passed by the learned Commissioner of Income Tax (Appeals)–54, Mumbai [“CIT(A)”], arising out of the assessment framed by the Assistant Commissioner of Income Tax, Central Circle–6(1), Mumbai [“the AO”] for the assessment year 2022–23. By the impugned order, the learned CIT(A) partly allowed the appeal of the assessee and sustained an addition of ₹11,14,117/– out of ₹14,99,617/– made under section 69A of the Act on account of alleged unexplained cash found during the course of search.
