Manoj Naveen Patel Vs ACIT (ITAT Mumbai)
The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-48, Mumbai, dated 27 January 2026, for Assessment Year 2022-23. The dispute concerned cash of Rs.7,00,000 found in a locker jointly maintained by the assessee and his wife with Vishwas Sahakari Bank, Nashik, during a search conducted under Section 132 of the Income-tax Act, 1961, on 16 November 2022 in the case of M/s Metropolis Healthcare Ltd. and associated entities. In his statement under Section 132(4), the assessee stated that the cash belonged to him and his family.
During assessment proceedings, the assessee explained that Rs.1,50,000 belonged to his father-in-law and had been kept for medical emergencies concerning his mother-in-law; another Rs.1,50,000 represented cash gifts received by his grandson during his thread ceremony; and the remaining Rs.4,00,000 comprised accumulated savings and cash withdrawn from bank accounts and retained for emergencies. The Assessing Officer did not accept the explanation for want of supporting evidence and treated the entire Rs.7,00,000 as unexplained money under Section 69A, resulting in total income being assessed at Rs.1,32,02,640.
Before the CIT(A), the assessee furnished confirmation from his father-in-law and his bank statement showing withdrawals for the first amount. Regarding the Rs.1,50,000 in gifts, he submitted photographs of the thread ceremony held on 30 October 2022, confirmation from his daughter and her bank statement showing payments towards the hall and caterer. For the remaining Rs.4,00,000, the assessee relied upon his regular cash withdrawals and savings, his disclosed income and the fact that he was filing his return under Section 44ADA in respect of his pathological laboratory business and was not required to maintain books of account. The CIT(A) nevertheless dismissed the appeal and sustained the addition.
