Anand Sweets & Savouries Vs DCIT (ITAT Bangalore)
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) in Bangalore addressed the appeal filed by Anand Sweets & Savouries against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which was issued on February 9, 2024. The case concerns the assessment year 2016-17 and focuses on the issue of cash seized from the premises of partners during a search operation and its subsequent adjustment against the partnership firm’s tax liability.
Background of the Case
The primary contention raised by Anand Sweets & Savouries was that the CIT(A) had erred in confirming the assessment officer’s (AO) decision, which denied the adjustment of cash seized from the partners’ premises against the tax liability of the partnership firm. The firm argued that this cash had been offered as self-assessment tax but was not accounted for in the intimation generated under Section 143(1) of the Income Tax Act.
Cash Seizure and Adjustment Denial
The facts presented indicated that cash amounting to ₹9,30,000 was seized from the premises of the partners during the search proceedings. The partnership firm claimed that this cash was recorded in its books of accounts and, therefore, should be considered an asset of the firm.
