Non-Filing of Evidence for Income from Other Sources: ITAT upholds Addition [Read Order]

In a recent ruling, the Ahmedabad bench of the Income Tax Appellate Tribunal ITAT upheld the additions made by the Assessing Officer under Section 69 A of the Income Tax Act, 1961, as unexplained money.

In this case, the assessee is Ravindrabhai Lakshmanrav Mane, who trades shares and makes money from a small business. During the assessment proceedings of the Income Tax Returns  (ITR) filed by the assessee, an amount of Rs. 15,00,000/- was seized by the assessment officer (AO).

The AO passed the assessment order by including additions made under Section 69 A of the Income Tax Act 1961, and the cash was seized under Section 132 A of the Income Tax Act.

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Aggrieved by the above order, the assessee appealed before the Commissioner of Income Tax (Appeals) [CIT(A)]. However, the additions were confirmed by the CIT(A). Thus the assessee approached the ITAT for relief.

The assessee contended that the CIT(A) had made an error in confirming the amount of Rs. 15,00,000/- as additions under Section 69A of the Income Tax Act, 1961 as unexplained money for the cash seized under Section 132A of the Income Tax Act. The assessee further contended that the above amount of Rs. 15,00,000 was declared in the ITR filed under the head ‘income from other sources’.

The ITAT bench observed that although the cash seized of Rs. 15,00,000/- was declared in the ITR under ‘other sources’, the assessee has been unable to properly explain the same.

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 The ITAT bench, comprising of Annapurna Gupta (Accountant Member) and T.R. Senthil Kumar (Judicial Member), upheld the additions made by the AO, as it was found by the bench that the assessee had not filed any evidence in support of the claim that it is from ‘other sources’.

To Read the full text of the Order CLICK HERE
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