The Income Tax Appellate Tribunal ( ITAT ), Mumbai bench directed it to restrict to the extent of 50% of unexplained portion of cash and Gold bars received as gift from family in Navjote ceremony of son.
The assessee,Rohinton Homi Sanga after filing the return of income it was observed that The assessee was covered under Section 132(1) of the Income Tax Act on his residential premises as part of the search action initiated at office premises of M/s. Blue Angel Construction Pvt. Ltd., on 27.07.2016 Shri Xerxes Talati and Shri Noshir Talati are the main persons controlling this company.
Consequent to search action notices under Section 143(2) and 142(1) of the Income Tax Act were issued and served on the assessee along with seeking certain clarifications.The Assessing Officer observed that during search, cash was seized of ₹33.82 lakhs and gold bars of ₹5,00,000/- along with documentary evidence and the assessee was asked to explain the sources of above said seized cash and gold bars.
After examining the submission of the assessee .The Assessing Officer rejected the submissions and made the additions .Aggrieved, the assessee filed further appeal before the CIT(A) who dismissed the appeal. Thereafter the assessee filed a second appeal before the tribunal.
J.D. Mistry, Counsel for assessee submitted that cash seized in his hands during search was a small savings of his family.and Gold Bars were received by him in November, 1998 during the Navjote ceremony of his two sons and rest purchased by him from the past savings.
Sanyogita Nagpal, Counsel for Revenue, submitted that the assessee has not given any satisfactory evidence. The burden of proof was not discharged by the assessee at the time of retraction.
The tribunal observed that the assessee has claimed that certain gold bars were received by him out of gifts and rest are out of family savings. As far as cash and gold bars are concerned since the assessee is receiving a considerable salary of ₹1,00,000/- per month there is a chance of certain savings and also certain gold bars are received out of gifts.
However it was observed that assess could not properly explained cash and gold bars.Thus the tribunal directed the Assessing Officer to restrict the additions to the extent of 50% of the unexplained portion of the cash and gold bars i.e., 50% of ₹7,82,000/-.
After reviewing the facts and records, the two-member bench Of Rifaur Rahman, ( Accountant member ) and Kuldip Singh, ( Judicial Member ) directed to restrict to the extent of 50% of unexplained portion of cash and Gold bars received as gift from family in Navjote ceremony of son.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
