R. Muthukumar Vs DCIT (ITAT Chennai)
The ITAT, Chennai in R. Muthukumar v. Deputy Commissioner of Income Tax [ITA No.: 3090/Chny/2019 dated February 15, 2023 has upheld the findings of the Appellate Authority and held that, there is no error in the reasons given by the Appellate Authority to sustain the additions towards the cash seized during the course of search proceedings as unexplained money, under Section 69A of the Income Tax Act, 1961 (“the IT Act”), when the assessee could not establish the source for amount found.
Facts:
A search was conducted under Section 132 of the IT Act for the Assessment Year (“A.Y”) 2017-18, in the R. Muthukumar’s (“the Appellant”) residence and the possession of cash amounting to INR 10,39,460/- (“the cash”) was found. Subsequently, the cash was seized and deposited into the PD account as the Appellant was unable to provide a satisfactory explanation for it. Consequently, the matter was taken for an assessment, and during the assessment proceedings, the Appellant could not explain the source of the cash. However, he claimed that he had received the amount from his wife, amounting to INR 7,75,000/- and also received a sum of INR 3,00,000 from his father, Ramalingam. The Revenue Department (“the Respondent”) made additions towards the cash seized during the course of search proceedings as unexplained money under Section 69A of the IT Act.
The Appellant preferred an appeal and explained that the cash source found during the search was out of gifts received from his wife and father. The Appellate Authority opined that, the Appellant was able to explain the source to the extent of INR 1 lakh and, thus, allowed relief to the extent of INR 1 lakh, and the balance amount of INR 9,39,460/- was confirmed vide the order dated August 28, 2019 (“the Impugned Order”).
Being aggrieved, this appeal has been filed.
Issue:
