SH. PUESH GUPTA,NEW DELHI vs. DCIT, NEW DELHI

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ITA 405/DEL/2015Status: DisposedITAT Delhi22 June 2018AY 2011-123 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that given the age of the children (16 and 17 years) and the financial status of the assessee, it was plausible for the children to have accumulated such amounts as gifts. Therefore, the addition was deleted.

What were the facts?

During a search, cash of Rs. 2,54,000 was found at the assessee's residence. The assessee claimed the cash belonged to his minor children, received as gifts from relatives. The Assessing Officer treated it as unexplained income.

What were the issues?

Whether cash found at the residence, claimed to be gifts to minor children, can be treated as unexplained income of the assessee.

Which sections of the Income-tax Act were involved?

Section 69A,Section 153A,Section 132,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri R S Singhvi, CA
For Respondent: Smt Deepali Chandra, CIT DR
Hearing: 23/04/2018Pronounced: 22/06/2018

O R D E R PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the assessee against the order of the ld CIT(A)- XXXIII, New Delhi dated 28.10.2014 for the Assessment Year 2011-12. 2. The assessee has raised the following grounds of appeal:- “1. That on the facts and circumstances of the case the ld CIT(A) has erred in confirming the addition of Rs. 204000/- made on account of cash seized inspite of the fact that the assessee has duly explained the source of the cash. 1.1 That while partly Rs. 50000/- admitting the explanation of the assessee for the cash seized explained out of Rs. 254000/- seized the ld CIT(A) could not justify the basis of arising at this amount.”

3. Brief facts of the case is that assessee appellant is an individual who filed his return of income on 26.09.2011 showing income of Rs 3022840/- in response to notice u/s 153A of the act pursuant to search U/s 132 of the act on 21.1.2011 on Dharampal Satyapal group of cases. The assessee declared income chargeable to tax under the heading salary, income from business and profession and income from other sources. Page | 1 During the course of search at the residence of the assessee cash of Rs. 2, 54, 000/– was found and seized. The assessee was asked to explain the source of the above cash. The assessee explained that cash found is out of the past savings and belonging to the minor children of the assessee which was received by them as gift from relatives on various occasions from paternal grandparents and maternal grandparents and relatives etc. The Ld. assessing officer did not believe the same. He therefore held that as the assessee has failed to give any plausible explanation with regard to the cash found with him the same is treated as unexplained cash and added to the total income of the assessee under section 69A of the act. Consequent to that he passed an assessment order under section 153A read with section 143 (3) of the act on 25/3/2013 determining total income of the assessee at Rs. 32,76,840/–.

4. The assessee preferred an appeal before the Ld. CIT – A who vied order dated 28/10/2014 confirmed the addition to the extent of Rs. 2.04 Lacs. He granted relief of Rs. 5 0, 000/–. Therefore assessee is in appeal before us.

5.

The Ld. authorized representative submitted that assessee is belonging to one of the members of the DS group. The assessee is regularly filing his return of income and showing substantial income. He further stated that the cash is found at the residence belongs to the minor children of the assessee who were aged 17 years and 16 years respectively. They received this sum from relatives on various occasions as gift. The Ld. AO looking at the family size and status should have accepted the above cash found during the course of search as explained.

6.

The Ld. departmental representative relied upon the orders of the lower authorities.

7.

We have carefully considered the rival contention and the orders of the lower authorities. During the course of search on 21/1/2011 cash of Rs. 2.54 Lacs was found and seized at the residence of the assessee. The assessee submitted that it belongs to his minor children namely Riya who is 17 years old and Kannav Gupta who is 16 years old. Assessee has filed his return of income of Rs. 3 022840/–. Further cash of Rs. 22, 77,000/– Page | 2

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