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2024 (3) TMI 250 - AT - Income TaxAddition on account of foreign currency found during the course of search treating the same as unaccounted income in the hands of the assessee - HELD THAT - There is no dispute that the foreign currencies were found from the possession of Vikram Bajaj, which is also not in dispute that in the proceedings of Vikram Bajaj, identical query was raised, wherein the explanation was furnished by the Vikram Bajaj and accepted by the AO. It is also true that small amount of foreign currency were found which appears to be remnants of foreign travel undertaken by the family members of the Group. The currencies are leftovers of the business trips. Even if we agree with these facts and explanations of remnants and leftovers, even then the onus is on the assessee to furnish evidences. Assessee has furnished before us, the evidence for the purchase of foreign currency from M/s Bakshi Forex Air Services (P) Ltd. The invoices pertain to the years 2012, 2013 and 2014 which are mainly for the US Dollar and Euro whereas the Panchnama shows currencies as Yuan, Hongkong Dollar, Rupaiya, Turkish Lira, Pound, Dinar and Bahat. The invoices produced before us would do no good to the assessee. We decline to interfere with the findings of the CIT(A). Appeal of the assessee is dismissed.
Issues involved: Addition of foreign currency as unaccounted income in the hands of the assessee.
The appeal was made against the order of the CIT(A)-30, New Delhi, pertaining to A.Y. 2018-19. The main issue argued was the addition of Rs. 1,10,574/- by the AO on account of foreign currency found during a search, treating it as unaccounted income. A search and seizure operation was conducted at various premises of Bajaj Group and its associates, including the assessee and its Directors. During the search at a specific premise, foreign currency of 12 different countries valued at Rs. 1,10,574/- was found. The assessee failed to provide any explanation, leading to the addition of this amount to their income, a decision which was upheld by the CIT(A). The Counsel for the assessee contended that the foreign currency found was remnants of currency taken by family members of the Group on their foreign travel. It was claimed that the currency belonged to six members of the Bajaj family. The Counsel pointed out that a similar query was raised during the assessment proceedings of Vikram Kumar Bajaj, where the explanation provided by him was accepted by the AO. The Counsel argued that since the currency was found in the possession of Vikram Bajaj, the addition should not be made in the hands of the assessee. On the contrary, the DR supported the AO's decision, stating that the assessee failed to provide any evidence to support their claim. After careful consideration of the orders of the authorities below, it was noted that the foreign currencies were indeed found in the possession of Vikram Bajaj. Although it was acknowledged that the currencies might be remnants of business trips taken by family members, the onus was on the assessee to provide evidence. The assessee presented invoices from M/s Bakshi Forex & Air Services (P) Ltd. for the purchase of foreign currency, mainly for US Dollar and Euro, while the currencies found were different. Therefore, the invoices did not support the assessee's case. Taking all facts into account, the Tribunal declined to interfere with the CIT(A)'s findings, resulting in the dismissal of the assessee's appeal.
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