Rishabh Agarwal Vs DCIT (ITAT Delhi)
Cash Found at Home Is Not Automatically Yours: ITAT Deletes Section 69A Addition
Cash seized from a family residence cannot be mechanically divided and taxed in an individual’s hands when other family members have identified their ownership and supported it with affidavits and personal books of account. In Rishabh Agarwal v. DCIT, the Delhi ITAT deleted the surviving addition of ₹1,43,624 under Section 69A, finding no plausible reason to tax cash belonging to other family members in the assessee’s hands.
The Search: Cash and Jewellery Found
A search was conducted on 8 March 2022 at the premises of the Sharda Group of Family and Agarwal Family. Cash and jewellery were found and seized during the proceedings.
From the residential premises of the Agarwal family, the Department found cash of ₹23,69,500. The Assessing Officer treated one-half of this amount, ₹11,84,750, as unexplained money belonging to Rishabh Agarwal and made an addition under Section 69A.
A separate addition of ₹8,03,469 was made for alleged unexplained jewellery. Both additions were challenged before the CIT(A).
The assessment concerned Assessment Year 2022-23 and had been completed under Section 143(3) through an order dated 26 March 2024.
CIT(A) Accepted Most of the Explanation
