The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has upheld the addition as the assessee has failed to explain the cash found during the search procedure.
A search was conducted in the group case of Kirtilal Kalidas Jewellers Pvt. Ltd on 12.09.2016. The appellant R. Muthukumar, was working as Assistant Vice-President, Retail Operations in the company. During the course of search, the assessee’s residence was also covered and found that he had in possession of cash. The assessee was called upon to explain the source, for which he did not give any satisfactory explanation.
Hence, cash found amounting to Rs. 10 lakhs were seized and deposited into PD Account. Consequent to search, the case was taken up for assessment and during the course of assessment proceedings, the assessee could not explain the source for cash found to be in possession, although he claimed that he had received a gift from his wife and also from his father Ramalingam.
The AO, made additions towards cash seized during the course of search proceedings as unexplained money under Section 69A of the Income Tax Act 1961.
P. Mohan Reddy, appeared on behalf of the revenue.
The Division Bench of V. Durga Rao, (Judicial Member) and G. Manjunatha, (Accountant Member) upheld the addition and dismissed the appeal observing that the assessee could not file any evidence to justify source for cash found and seized during the course of search.
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