Mithilesh Kumar Choubey Vs DCIT / ACIT (ITAT Patna)
The appeal before the Income Tax Appellate Tribunal (ITAT), Patna, involves the assessee, an individual engaged in business and professional activities, challenging additions made by the Assessing Officer (AO) and partially confirmed by the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year (AY) 2021-22. The case arose from a search and seizure operation under Section 132 of the Income Tax Act, 1961, conducted on 06.10.2020. During the operation, cash was seized from the assessee’s premises, and the AO added ₹5,64,700 to the assessee’s income in the assessment order dated 30.03.2022. The assessee had originally filed an income tax return on 12.03.2022, declaring total income of ₹6,56,250 and claiming exempt income of ₹88,572.
The assessee filed an appeal before the CIT(A), contending that the addition of cash was already made in the hands of his brother, Rakesh Kumar Chaubey, whose premises were also searched. The CIT(A) partly allowed the appeal by reducing the addition from ₹5,64,700 to ₹4,00,000, granting relief of ₹1,64,700. The CIT(A) observed that the cash was found from the assessee’s bedroom, and its source was not initially explained. However, considering that the income declared by the assessee included profits from sale of agricultural produce, involving substantial cash transactions, the CIT(A) restricted the addition to ₹4,00,000. The CIT(A) directed the AO to adjust the income in line with the income tax return filed by the assessee.
