CA’s Retention of Marriage Gifts and Large Household Cash Unsubstantiated: ITAT Deletes ₹6.21 Lakh Linked to Property Sale and Company Funds [Read Order]

The Income Tax Appellate Tribunal has partly allowed the appeal of a Chartered Accountant , confirming that the retention of marriage gifts and large household cash was unsubstantiated while granting limited relief. The tribunal deleted ₹6.21 lakh linked to property sale proceeds and company funds but upheld additions totaling ₹31.81 lakh, observing that the assessee failed to justify the possession of substantial cash found during a search at his Ghaziabad residence.

A search under Section 132 of the Income Tax Act, 1961 was conducted at Kumar’s Ghaziabad residence on 3 February 2022, leading to recovery of ₹36.50 lakh in cash.

The assessee, Anil Kumar, claimed the amount represented shagun gifts received at his daughter’s marriage, household savings, sale proceeds of property, and cash belonging to his wife’s company, Mittal Homes Pvt. Ltd.

The Assessing Officer rejected these explanations and treated the entire sum as unexplained money under Section 69A, which was later confirmed by the Commissioner of Income Tax (Appeals). On further appeal, the ITAT examined each component of the seized cash.

The bench observed that the ₹24.31 lakh claimed as marriage shagun could not be linked to the cash found nearly seven months after the wedding, especially since the daughter was not residing with the assessee.

The bench comprising Accountant Member Amitabh Shukla and Judicial Member Madhumita Roy observed that “there cannot be any justification with the assessee to have retained the same with himself even much after the marriage of the daughter.

The position is far more intriguing as the married daughter was not staying with the assessee. Further, the question arises as to why would assessee retain the cash of Rs.24,31,500/- received at the time of Shagun Ceremony in his house and not deposited in daughter’s or his own bank account.”

Regarding ₹13.50 lakh shown as household savings, the tribunal accepted only ₹6 lakh, ₹2 lakh each for the assessee, his wife, and daughter as reasonable personal cash, disallowing the remaining ₹7.50 lakh. So it found merit in the claim of ₹2 lakh from sale of property and ₹4.21 lakh belonging to Mittal Homes Pvt. Ltd., directing deletion of these additions after verifying supporting documents.

Consequently, out of the total ₹36.50 lakh, ₹31.81 lakh was sustained and ₹6.21 lakh deleted, rendering the appeal partly allowed.

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