SARTAJ AHMAD,SITAPUR vs. THE DCIT/ACIT (CENTRAL CIRCLE-2), LUCKNOW

ITA 617/LKW/2025Status: DisposedITAT Lucknow10 March 2026AY 2023-24Bench: SHRI KUL BHARAT (Vice President), SHRI ANADEE NATH MISSHRA (Accountant Member)8 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal observed that the search party prepared a consolidated inventory of cash, not separate ones for each individual, and the Revenue Authorities failed to conduct further inquiries into the family members' claims despite the assessee providing supporting documents. No adverse view was taken in the individual assessments of the family members. Finding the sustained addition of Rs.10,60,000/- to be premeditated and without merit, the Tribunal directed its deletion.

What were the facts?

During a search operation under Section 132 of the Income Tax Act, cash amounting to Rs.48,76,000/- was seized from the assessee's residence. The assessee claimed that this cash belonged to various family members, providing a person-wise breakup and supporting documents. The Assessing Officer initially added the entire amount to the assessee's income, and the CIT(A) partly allowed the appeal, sustaining an addition of Rs.10,60,000/- after accepting some claims.

What were the issues?

Whether the sustained addition of Rs.10,60,000/- under Section 69A, representing cash found during a search and claimed by family members, was justified when the Revenue Authorities did not verify the claims or conduct further inquiries into the family members' individual assessment records.

Which sections of the Income-tax Act were involved?

Section 132,Section 143(3),Section 69A,Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW

Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA

For Appellant: Shri Mahendra Kumar, FCA

PER ANADEE NATH MISSHRA, A.M.:

(A). This appeal vide I.T.A. No.617/LKW/2025 has been filed by the assessee for assessment year 2023-24 against impugned appellate order dated 27.06.2025 (DIN & Order No.ITBA/APL/S/250/2025-26/1077923825(1) of Ld. Commissioner of Income Tax (Appeals) [“CIT(A)”, for short].

(B) In this case, assessment order dated 26.02.2025 was passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (“Act”, for short) whereby the assessee’s total income was determined at Rs.63,83,010/- as against returned income of Rs.15,07,010. In the aforesaid assessment order, an amount of Rs.48,76,000/- was added to the assessee’s returned income. The aforesaid addition was made on account of cash of Rs.48,76

The order continues below.

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