Cash found in Locker belongs to Mother of Assessee: ITAT deletes Income Tax Addition on Unexplained Cash [Read Order]
![Cash found in Locker belongs to Mother of Assessee: ITAT deletes Income Tax Addition on Unexplained Cash [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/10/Cash-found-Assessee-ITAT-Income-Tax-Unexplained-Cash-TAXSCAN.jpeg "Cash found in Locker belongs to Mother of Assessee: ITAT deletes Income Tax Addition on Unexplained Cash [Read Order]")
The Income Tax Appellate Tribunal (ITAT), New Delhi deleted addition on unexplained cash on the cash found in locker belongs to mother of assessee, Komal Nagpal. The core issue in this case revolves around the taxability of Rs. 11,97,500 of cash found in the locker No. 109 with ICICI Bank, New Delhi. During the course of search proceedings, a warrant has been issued to search the premises...
The Income Tax Appellate Tribunal (ITAT), New Delhi deleted addition on unexplained cash on the cash found in locker belongs to mother of assessee, Komal Nagpal.
The core issue in this case revolves around the taxability of Rs. 11,97,500 of cash found in the locker No. 109 with ICICI Bank, New Delhi. During the course of search proceedings, a warrant has been issued to search the premises of the locker No 109 standing in the name of Komal Nagpal and Nirmal Bhandari on 15.06.2016. During the course of search cash amounting to Rs. 11,97,500 has been found in the locker. During the course of locker operation statement of Komal Nagpal, the Assessee has been recorded u/s 132(4) of the Income Tax Act, 1961.
The Assessee replied that the cash belongs to Nirmal Bhandari. The same was her from lifelong saving inherited from her Late husband R K Bhandari. As she is 87 years old and is bed ridden and unable to operate normal bank account, therefore, she has kept the money in the locker for her personal use. It was replied that the locker was originally in the joint name of Nirmal Bhandari and Late R. K. Bhandari, father of the Assessee. After the demise of her father, the mother of the Assessee used to operate the account being the sole holder of the locker. It was submitted that the name of the Assessee was added in place of Late R. K. Bhandari as the second holder as the mother of the Assessee had grown old and was aged of 87 years and was not very active.
The AO made an addition of Rs. 11,97,500 on account of unexplained cash u/s 69A of the Act on substantive basis in the hands of the Assessee and mentioned that protective addition shall be made in the hands of the legal heir of Nirmal Bhandari.
A Bench consisting of observed that “We hold that the assessee is not liable to be assessed with regard to the cash found in the locker of Nirmal Bhandari.”
To Read the full text of the Order CLICK HERE
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