Pawan Onkardas Chandak Vs ACIT (ITAT Mumbai)
Household Savings and Customary Gifts Can Explain Search Cash; Section 69A Addition Deleted Considering Household Savings, Gifts and Telescoping; Past Recognised Cash Availability Can Explain Cash Found During Search; ITAT Mumbai Deletes ₹8.87 Lakh Section 69A Addition for Family Cash Savings
Summary: The Mumbai Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal concerning an addition of Rs. 8,87,400/- sustained under Section 69A of the Income-tax Act, 1961 in respect of cash attributed to the assessee’s mother and minor children. The Tribunal directed the Assessing Officer to delete the remaining addition.
The appeal arose from the order dated 21/03/2026 passed by the Learned Commissioner of Income-tax (Appeals), Mumbai under Section 250 of the Act, arising from an assessment completed under Section 143(3) for AY 2022-23. The assessee had declared total income of Rs. 12,35,980/- in the return filed on 31st December 2022. A search and seizure operation under Section 132 was conducted on 23rd September 2021 at the residential and business premises of the assessee and connected entities. Cash aggregating to Rs. 19,14,500/- was found, of which Rs. 16,64,500/- was seized.
During assessment proceedings, the assessee furnished an individual-wise explanation of the cash among six family members. The explanation attributed Rs. 1,78,200/- to the assessee, Rs. 43,500/- to his wife, Rs. 8,05,400/- to his father, Rs. 4,80,600/- to his mother, Rs. 2,25,300/- to his minor daughter and Rs. 1,81,500/- to his minor son. The assessee relied upon cash books for the assessee, his wife and father, while the amounts attributed to the mother and minor children were explained as lifetime savings and customary gifts received from relatives.
