Case Law Details
Rohinton Homi Sanga Vs DCIT (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently ruled in the case of Rohinton Homi Sanga Vs DCIT, where the appellant contested against the Commissioner of Income Tax (Appeals)-49, Mumbai. The dispute arose from the assessment year 2017-18.
Detailed Analysis: The appellant, a salaried employee, faced scrutiny after a search operation at the premises of M/s. Blue Angel Construction Ltd. During the search, cash of ₹33.82 lakhs and gold bars worth ₹5 lakhs were seized. The appellant asserted that the cash belonged to Topworth Properties Pvt. Ltd. and Shri Noshir Talati. However, the Assessing Officer rejected this claim.
The Assessing Officer heavily relied on the statement recorded under section 132(4) of the Income Tax Act, where the appellant acknowledged handling unaccounted cash from various clients. Despite a subsequent retraction, the additions were made.
The appellant, dissatisfied with the Assessing Officer’s order, appealed to the Commissioner of Income Tax (Appeals) but faced rejection. The grounds of appeal included the procedural irregularities, the invocation of section 69A, and the reliance on retracted statements.
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