Case Law Details
Anil Kantilal Shah Vs CIT (ITAT Mumbai)
ITAT Mumbai held that addition under section 69B of the Income Tax Act towards unexplained investment sustained excel sheet and whatsapp chat are incriminating material found and seized during the course of search action.
Facts- A search and seizure action u/s 132 of the Act was carried out on 26.11.2019 at the branch offices, site offices, residences of the partners and employee of M/s Narendrakumar & Company (Everest Masala Group) along with related parties. The assessee Shri Anil Kantilal Shah was the proprietor of M/s Om Kesar and was covered u/s 132 of the Income Tax Act 1961.
During the course of search action some excel files were found in the laptop and whatsapp messages were found on the mobile phone of the assesse which related to the transactions pertaining to purchases of a flat. As per the information contained in the excel sheet the assesse has made cash payment of Rs.42.69 lac to the builder suparshwa state over and above the agreement value of the flat of Rs.1.1 crores. During the course of search action the assessee has also accepted these fact in his statement recorded u/s 132(4) of the Act that an amount of Rs.42.69 lacs was paid in cash for purchasing of the aforesaid premises.
As the assessee had not declared the amount of Rs. 42.69 lac in the return, a show cause notice was issued proposing addition of the amount to total income as unexplained investment u/s 69B. Not agreeing with the submission, AO made addition of the same amount. CIT(A) dismissed the appeal of the assessee.
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