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Facts
During a search operation, ₹45,94,000 was found in a bank locker in the name of the assessee and his wife, and ₹9,00,000 was claimed as a gift from the assessee's sister-in-law. The assessee initially admitted the cash as unexplained but later retracted. The assessee also claimed the cash was from his nursing home business, but failed to provide plausible evidence.
Held
The Tribunal upheld the addition of ₹45,94,000 as unexplained income, finding that the assessee failed to discharge the onus of proof under Section 106 of the Indian Evidence Act. Similarly, the addition of ₹9,00,000 was confirmed as the assessee could not substantiate the source of the funds.
Key Issues
Whether cash found in a locker and claimed as a gift to children constitutes unexplained income, and if the assessee has discharged the burden of proof regarding the source of the funds.
Sections Cited
132, 69A, 143(3), 106, 132(4)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “PATNA” BENCH, PATNA
Before: SHRI DUVVURU RL REDDY, VP & SHRI RAJESH KUMAR, AM
This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), Patna-3 (hereinafter referred to as the “Ld. CIT(A)”] dated 31.08.2022 for the AY 2007-08.
The only issue raised by the assessee in the various grounds of appeal is against the order of learned CIT (A) confirming the addition of ₹45,94,000/- by upholding the order of the learned Assessing Officer, wherein the learned Assessing Officer made an addition of cash found during the course of search by treating the same as unexplained money under Section 69A of the Act.
The facts in brief are that a search action under Section 132 of the Act was conducted on the assessee on 06.10.2006. During the course of
In the appellate proceedings, the learned CIT (A) confirmed the addition by observing and holding as under:-
“I have considered the assessment order passed by the ACIT, Central Circle-3. Patna, the appellate order passed by Ld. CIT(A)-1, Patna, copy of paper book filed before Hon'ble ITAT, Patna and written submission made by the Ld. AR. The only dispute remains to be decided is regarding the addition of Rs. 54,94,000/- on following issues. A. On account of undisclosed cash found from locker no. Rs. 45,94,000/-454, HDFC Bank, Boring Road, Patna
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open court on 23.02.2026.