Case Law Details
Smt. Bhawna Babbar Vs ACIT (ITAT Delhi)
The issue under consideration is whether A.O. and CIT is correct in making an addition u/s 69 for cash found during search in bank locker?
The assessee explained that the cash so found in the locker was received as gifts on the occasion of marriage and subsequent ceremonies of her younger daughter. Assessing Officer was not satisfied with the source of opening cash balance and hence addition has been made.
CIT(A) held that the custom prevailing in an Indian Hindu family and also considering the status of the assessee’s family, a part of the cash found can be treated as explained, being gifts and balance amount will be added as unexplained income u/s 69.
ITAT state that it is true that the findings of the Id. CIT(A) are not only illogical but also do not find any place in the law of Income tax. It is equally true that the onus is upon the assessee to explain the possession of cash found at the time of search. Therefore, ITAT considered that, the burden of proof is more when cash is found in the locker of a bank and not found deposited in the bank account. Considering the status of the appellant’s family, her life style and standard of living, vis a vis returned income. Lower authorities have already given substantial relief in respect of cash found from the locker. Therefore, addition made by AO was sustained.
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