DCIT Vs Atul (Kumar) Gupta (ITAT Delhi)
ITAT Upholds Deletion of ₹4.34 Lakh Addition for Foreign Currency Kept in Safe Custody which Belonged to Sister-in-Law
The ITAT Delhi considered the Revenue’s challenge to relief of ₹4,34,400 granted by the CIT(A) concerning foreign currency found during a search on 21.03.2017. The assessment was framed under Section 153A read with Section 143(3) for AY 2017-18. The Tribunal had earlier confirmed the CIT(A)’s relief, but recalled its decision on this issue through an order dated 30.04.2026 following the assessee’s Miscellaneous Application.
During the search, the assessee explained that the foreign currency belonged to his sister-in-law, Ms. Jeny Kemp, who worked with Jet Airways and was staying with him. She confirmed that she had given the currency to the assessee for safe custody. The assessee submitted that the investigation officers were satisfied with the explanation at the time of search and therefore did not seize the currency. The Tribunal noted that the Assessing Officer had not controverted the assessee’s submissions and found no infirmity in the CIT(A)’s order. It accordingly confirmed the relief of ₹4,34,400 and dismissed the Revenue’s ground of appeal.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal filed by the Revenue is directed against the order of Ld. Commissioner of Income Tax (Appeals)-29, New Delhi, dated 14.09.2021 arising out of assessment order dated 26.12.2018 passed u/s 153A r.w.s.143(3) of the Act, for Assessment Year 2017-18. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
