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TMI Blog2025 (3) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... ource of income and that the declaration made during the search operation is sufficient to bring the case outside the purview of Section 69A r/w Section 115BBE. This court is unable to appreciate the issue as a pure question of law or arguments of the appellants. Even if an explanation is given, such explanation has to be satisfactory in the opinion of the Assessing Officer in terms of Section 69A of the Income Tax Act. In this case, there is no explanation. The money seized was not disclosed and hence it is an unexplained money. Mere declaration that it was received as commission without an explanation about the source with supporting material attracts Section 69A and the tax liability under Section 115BBE follows. See Shashi Garg [2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- as his commission income. They also agreed to pay tax on the excess cash which were not accounted in the books of accounts. Thereafter, the appellants filed their return of income, after issuance of notice under Section 142(1) of the Income Tax Act, declaring the excess amount seized during search proceedings under the head income from "other source". Thereafter notice under Section 143(2) of Income Tax Act, 1961 and a show cause notice dated 23.02.2022 was issued to the appellants. In the notice, the appellants were requested to explain why the excess money shall not be considered as unexplained money under Section 69A of the Act. However, the assessee's did not even respond to the show cause notice. Thereafter, assessment orders were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g tax on hypothetical income which has neither accrued/arisen nor received by the appellant as against real income by merely placing reliance on the statement of the appellant. d) Whether the Income Tax Appellate Tribunal is right in law in assessing the entire cash seized from the premises of the appellant under the head unaccounted cash under Section 69A even though the seized cash is explainable with the cash in hand of the other assessee's residing in the searched premises." 4. For the sake of convenience and for better appreciation of facts, Sections 69A and 115BBE of the Income Tax Act, 1961, are reproduced as below: Section 69A of the Act: Where in any financial year the assessee is found to be the owner of any money, bullion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any loss shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) and clause (b) of sub-section (1). 5. It is admitted that the appellants have filed their returns stating that the income of Rs. 50,00,000/- and Rs. 35,00,000/- are income by way of commission. As per Section 69A of the Act, the assessee has to offer an explanation about the nature and source of acquisition of money. In this case, barring the statement of the appellants declaring the income by way of commission, no other information disclosing the source of income as required under Section 69A of the Act was given, despite the show cause notices were issued. The very fact that the assessee's did not even respond t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence on record is undisputed, and the inference and factual findings recorded we could observe are supported by cogent and weighty reasoning. Explanation of the appellant-assessee has been duly considered and not ignored. Implausible and lame justification for making cash withdrawals has exposed and dented the concocted explanation regarding source of the cash deposit. Factual findings are based on cumulative effect of all facts covering all essential points. We would not interfere with factual findings unless they are irrational and absurd, which no person acting judicially and properly instructed in the field of law of taxation would have passed." 7. The above view of the Delhi High Court was affirmed by the Hon'ble Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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