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Issues involved:
- Addition of Rs. 4,80,000 made on account of cash found in possession of the driver of the assessee. Detailed Analysis: The appeal filed by the assessee pertains to an addition of Rs. 4,80,000 made on account of cash found in possession of the driver of the assessee. The cash amount of Rs. 5,50,000 was seized from the driver by the police, who claimed it belonged to the appellant. The IT Department was informed, and the cash was seized under the IT Act. The appellant admitted before the police that the money was related to his wholesale mutton business. The appellant provided names of ten persons who were stated to be relatives and from whom the cash was taken for the purpose of purchasing goats. The Assessing Officer (AO) noted contradictory statements by the appellant but during assessment proceedings, affidavits from the listed persons were filed. The AO was not convinced by their statements and taxed Rs. 5,20,000 as unexplained cash under section 69A of the IT Act. The first appellate authority examined the case and granted relief of Rs. 40,000, leaving the remaining Rs. 4,80,000 in question. Before the appellate tribunal, the appellant submitted a compilation of statements, Panchnama, applications for release of seized amount, affidavits of the persons, and supporting evidence. The appellant argued that the primary onus was discharged by producing the persons before the authorities who claimed ownership of the cash. The appellant relied on a decision of the Calcutta High Court to support the argument. The tribunal observed that there was no evidence to show that the cash belonged to the appellant. The cash was seized from the driver, and the appellant explained it was taken from relatives for goat purchases. The tribunal noted that the persons claiming ownership were engaged in retail mutton business, and their statements and affidavits were produced. The tribunal found that the lower authorities erred in adding the amount based on presumptions and ignoring the evidence provided by the appellant. Consequently, the tribunal reversed the findings of the CIT(A) and deleted the addition of Rs. 4,80,000. In conclusion, the tribunal allowed the appeal of the assessee, ruling in favor of deleting the addition of Rs. 4,80,000 made on account of cash found in possession of the driver of the assessee.
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