Rajeev Gupta Vs DCIT (ITAT Agra)
The ITAT, Agra Bench held that cash seized on 30-03-2019 pertains to AY 2019-20, and therefore no addition u/s 69A can be made in AY 2020-21. In this case, police seized ₹10 lakh from the assessee on 30-03-2019; the AO treated ₹4.50 lakh as explained (bank withdrawal) and added the balance ₹5.50 lakh u/s 69A r.w.s. 115BBE in AY 2020-21, which was affirmed by CIT(A).
The Tribunal found the year-of-taxability to be decisive: once the seizure date falls in FY 2018-19, any unexplained money—if at all—can be considered only in AY 2019-20, not the subsequent year. On this jurisdictional/temporal ground alone, the addition could not survive.
Accordingly, the entire addition of ₹5.50 lakh was deleted, and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT AGRA
1. The appeal in ITA No. 128/AGR/2025 for AY 2015-16, arises out of the order of the ADD/JCIT(A), Gurugram [hereinafter referred to as ‘ld. JCIT(A)’, in short] dated 28.01.2025 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 29.12.2017 by the Assessing Officer, ITO, Ward-1(1)(3), Agra (hereinafter referred to as ‘ld. AO’).
2. The only effective issue to be decided in this appeal is as to whether the ld CIT(A) was justified in confirming the addition made in the sum of Rs 5,50,000 under section 69A of the Act in the facts and circumstances of the instant case.
