Satya Narain Bari Vs DCIT (ITAT Delhi)
The assessee, Satya Narain Bari, filed an appeal before the ITAT Delhi against the CIT(A)’s order for the assessment year 2019-20, arising from proceedings under section 144 of the Income-tax Act, 1961. The appeal concerns the treatment of cash amounting to Rs.27,50,000/- found in the assessee’s locker during a search and seizure operation conducted on 11.12.2018 at Faquir Chand Lockers and Vaults Pvt. Ltd. Locker No. 186 at Khari Baoli, Delhi, contained this cash, which the Assessing Officer (AO) treated as unexplained under section 69A read with section 115BBE of the Act. The assessee did not file an ITR for AY 2019-20 and appeared non-compliant in prior years, declaring minimal business income post-search.
The AO rejected the assessee’s explanation that the cash represented lifetime savings from a dry fruits business, noting the absence of any documentary evidence supporting business operations, details of transactions, or stock management. Cash flow charts submitted by the assessee showed inconsistencies in household expenses and stock-related receipts. The AO further emphasized the demonetization context in 2016, pointing out that the cash seized was in new currency notes, with no proof of conversion from old notes. Consequently, the AO made the full addition of Rs.27,50,000/- as unexplained income.
