Dimple Manoj Sanghvi Vs DCIT (ITAT Ahmedabad)
A Name in a Family Diary Is Not Proof of Unexplained Spending: ₹33.50 Lakh Addition u/s 69C Deleted After Telescoping Family Cash Withdrawals
The Ahmedabad ITAT deleted an addition of ₹33.50 lakh made u/s 69C on the basis of handwritten entries appearing in diaries seized from the residence of the assessee’s father-in-law. The Tribunal accepted that the entries represented cash belonging to the father-in-law, which was handed over to the assessee, a homemaker residing in the same bungalow, for safe custody and was subsequently returned by her.
Since the father-in-law’s recorded cash withdrawals and opening cash balance were sufficient to explain the amounts reflected in the seized ledger, the Tribunal granted the benefit of telescoping and held that no addition could survive in the assessee’s hands.
The assessee, Dimple Manoj Sanghvi, filed her return for AY 2012-13 declaring a total income of ₹4,48,174. A search u/s 132 was conducted on 23.11.2021 in the cases of the Ratnamani Group, its key associates & family members, including the assessee.
During the search at the residential premises of Shri Prakash Mishrimal Sanghvi, the assessee’s father-in-law, several handwritten diaries and loose papers were found and seized. These documents contained handwritten entries covering financial years relevant to AYs 2010-11 to 2021-22.
