Anil Kumar Vs ACIT (ITAT Delhi)
Large Household Cash Partly Disallowed Because Personal Savings Were Not Fully Substantiated; Property Sale Cash and Company Funds Accepted Because Supporting Details Were Produced; Cash Found During Search Partly Explained Because Evidence Supported Only Certain Sources; Shagun Money Claim Rejected Because Link With Seized Cash Was Not Established.
The Income Tax Appellate Tribunal (ITAT), Delhi, partly allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2022-23 concerning an addition of ₹36.50 lakh made on account of cash found during a search conducted under Section 132 of the Income Tax Act. The assessee, a Chartered Accountant in private practice, explained that the cash represented Shagun (marriage gifts) received during his daughter’s marriage, household savings, sale proceeds from an immovable property, and cash belonging to a company operated by him. The Assessing Officer rejected the explanation and made the addition, which was substantially upheld by the CIT(A). The assessee challenged the findings before the Tribunal.
The Tribunal examined each component of the cash separately. Regarding ₹24.31 lakh claimed as Shagun money received at the daughter’s marriage, it observed that although such gifts constituted the daughter’s Stri Dhan, there was no satisfactory explanation as to why the assessee retained the cash long after the marriage, particularly when the daughter was not residing with him. It also questioned why such a substantial amount had not been deposited into either the daughter’s or the assessee’s bank account. Accordingly, the Tribunal held that the linkage between the seized cash and the marriage gifts was not firmly established and confirmed the addition of ₹24.31 lakh.
