2022 (9) TMI 546 - AT - Income Tax

Unexplained cash - cash found during the course of search proceeding - AO was not satisfied with the contention of the assessee on the reasoning that the assessee has taken different stand that during the search proceedings viz a viz assessment proceedings - HELD THAT - On perusal of the order of CIT-A, we note that the order passed by him is well speaking and reason. Indeed, the assessee in the statement of facts filed along the memo of appeal has made various submissions but the same were not supported by the documentary evidence. Therefore, in the absence of necessary information, we find difficult get convinced with the submission of the assessee filed along with the statement of facts. As such, there was no information/materials brought on record contrary to the finding of the learned CIT(A). Accordingly, we do not find any reason to interfere in the order of the learned CIT(A). Hence, the ground of appeal of the assessee is hereby dismissed.

Summary

Issues:
1. Addition of unexplained cash during search proceedings.

Analysis:

Issue 1: Addition of unexplained cash during search proceedings

The appeal was filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals) confirming the addition of Rs.19 lakhs as unexplained cash found during search proceedings. The Assessee initially admitted that the cash represented unaccounted income from his firms. However, during assessment proceedings, the Assessee claimed the cash belonged to other companies. The Assessing Officer (AO) rejected this claim, stating the Assessee had changed his stance. The AO added the cash to the Assessee's total income.

The Assessee contended before the CIT-A that the cash belonged to other companies, supported by cash book entries. The CIT-A, however, upheld the AO's decision, noting discrepancies in the Assessee's statements. The CIT-A emphasized that the cash was found in premises solely controlled by the Assessee, and no evidence supported the Assessee's revised claim. The CIT-A dismissed the Assessee's appeal, stating the additions were in line with the law.

In the subsequent appeal before the ITAT, the Assessee failed to appear, leading to an ex parte hearing. The ITAT reviewed the case facts and rejected the Assessee's arguments. The ITAT found no merit in the Assessee's claims, as they lacked documentary evidence. The ITAT upheld the CIT-A's order, dismissing the Assessee's appeal.

In conclusion, the ITAT upheld the decision to add the unexplained cash to the Assessee's income, as the Assessee's contentions lacked substantiating evidence. The appeal was dismissed, affirming the order of the CIT-A.