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2021 (9) TMI 910 - AT - Income TaxUnexplained cash u/s. 69A - search and seizure and survey operations u/s. 132/132A conducted - HELD THAT - It is true that the assessee is a Senior Citizen of 75 years of age. Therefore, it can be easily accepted that he must be keeping cash at home for medical emergencies. But at the same time, non-explanation of the source cannot be brushed aside lightly. We find that search party had seized only ₹ 2 lakhs which means that the search party itself must have accepted the source for ₹ 54,200/-. In light of these facts, we direct the Assessing Officer to restrict the disallowance to ₹ 2 lakhs only. The assessee shall get part relief.
Issues: Addition of unexplained cash under section 69A of the Income Tax Act, 1961.
Analysis: The appeal was filed against the order of the Commissioner of Income Tax [Appeals]-27, New Delhi for Assessment Year 2014-15. The grievance of the assessee was the addition of ?2,54,200 on account of unexplained cash under section 69A of the Income Tax Act. The search and seizure operations were conducted in the Metenere Group, where the assessee was involved, leading to the discovery of ?2,54,200 in cash, out of which ?2 lakhs was seized. The assessee claimed the cash was savings kept at home for medical emergencies over the past 10 years but failed to provide documentary evidence. Consequently, the Assessing Officer treated the amount as unexplained and made an addition under section 68 of the Act. The matter was taken to the ld. CIT(A) but without success, as the addition was confirmed under section 69A of the Act. The assessee, a senior citizen around 75 years old, argued that the cash was kept for medical emergencies, but when pressed for the source, the explanation was not satisfactory. The Tribunal acknowledged the age of the assessee and the likelihood of cash being kept for emergencies but emphasized the importance of explaining the source of the funds. Notably, since only ?2 lakhs out of the total amount was seized, the Tribunal directed the Assessing Officer to restrict the disallowance to ?2 lakhs, providing the assessee with partial relief. In conclusion, the appeal was partly allowed, and the Assessing Officer was directed to limit the disallowance to ?2 lakhs only, considering the circumstances and the source of the seized amount.
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