Abdul Muqeet Mohammed Vs DCIT (ITAT Hyderabad)
The Hyderabad Income Tax Appellate Tribunal (ITAT) partly allowed the assessee’s appeal and granted substantial relief in a case concerning addition of cash found in his possession under Section 69A of the Income Tax Act. The Tribunal also condoned a delay of 104 days in filing the appeal after accepting the assessee’s explanation that the delay occurred due to technical difficulties relating to PAN-Aadhaar linkage and the consequent inability to obtain a Digital Signature Certificate (DSC) in time. The Tribunal noted that the assessee had paid the appellate filing fee within the prescribed limitation period, demonstrating his intention to pursue the appeal.
The dispute arose after cash amounting to ₹19,79,950 was found and seized from the assessee on 09.08.2018. Following requisition proceedings under Section 132A, the Assessing Officer (AO) called upon the assessee to explain the source of the cash. As the AO was not satisfied with the explanation provided, the entire amount was treated as unexplained money under Section 69A and added to the assessee’s income. The addition was subsequently upheld by the Commissioner of Income Tax (Appeals).
Before the Tribunal, the assessee contended that he and his three sons were engaged in business activities and were regularly filing income tax returns. It was submitted that the assessee had declared income of ₹17,64,712 during Assessment Years 2016-17 to 2019-20, while his three sons had declared incomes of ₹13,56,807, ₹12,49,300, and ₹12,54,455 respectively during the same period. The assessee further explained that his wife was suffering from cancer and eventually passed away on 12.11.2018. Since the cash was seized approximately three months before her death, it was argued that the family had accumulated savings over time to meet her medical expenses. Affidavits from the assessee’s three sons were also filed, stating that they had contributed their savings to their father for their mother’s treatment.
