Deepavali Balu Vs DCIT (ITAT Hyderabad)
₹3.49 Crore Cash Seized from Vehicles Carrying Assessee’s Money, Supported by Cash Book and Debtor Realisations — ITAT Hyderabad Deletes Section 69A Addition
Key Facts
- The assessee is engaged in petrol pump and construction business, with turnover exceeding ₹115 crore.
- On 11.10.2022, police intercepted two vehicles and seized cash of ₹3,49,93,800, carried by acquaintances of the assessee.
- Statements recorded under section 131(1A) confirmed that the cash belonged to the assessee and was being transported on his instructions.
- The assessee explained that the cash represented business cash accumulated from realization of sundry debtors and was intended for purchase of land.
- The cash book showed opening cash balance of ₹3,74,74,670 as on 10.10.2022, sufficient to cover the seized cash.
- Audited books of account, GST returns, and debtor confirmations were furnished; no defects were found and books were not rejected.
Issue
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Whether cash seized by police can be treated as unexplained money under section 69A despite being recorded in regular books and supported by evidence.
ITAT Findings
- The explanation was consistent from investigation stage onwards and supported by contemporaneous records.
- There was no abnormal increase in sales, no evidence of suppression, and no contrary material brought by the Revenue.
- Mere human probability or business-model assumptions cannot override documentary evidence when books are accepted.
Held
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