PSS Solutions Pvt. Ltd. Vs Assessment Unit (ITAT Delhi)
Excel-Sheet Entry Is Not “Money” Found With Assessee—Delhi ITAT Deletes Addition Under Section 69A
Summary: The Delhi Bench of the Income-tax Appellate Tribunal has held that an addition under section 69A cannot be made merely on the basis of entries appearing in an Excel sheet recovered during a search conducted on a third party. Section 69A applies where the assessee is found to be the owner of money, bullion, jewellery or another valuable article which is not recorded in the books. Where no cash, bullion, jewellery or valuable article was found in the possession of the assessee, an Excel-sheet entry by itself could not justify an addition under that section.
Facts of the case
The assessee filed its original return for AY 2018-19 on 14 September 2018, declaring nil income after reporting a loss of ₹16,20,383.
The Department received information through the Insight Portal suggesting that the assessee had earned income from trading in equities and derivatives which had allegedly not been disclosed.
The information originated from a search conducted on Shri Sushil Goel and other group entities on 31 January 2020. The Investigation Wing alleged that the searched group was involved in the purchase and sale of foreign currency and domestic and international hawala operations.
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