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2023 (10) TMI 84 - AT - Income TaxAddition u/s 69A r.w.s. 115BBE - Cash found from the assessee by ADCP(Narcotics), Ludhiana and later on seized by the Department - unexplained source of cash - assessee by way of alternate contention submitted that where the AO has accepted the assessee’s return of income disclosing income and taking the same into consideration and tax filings for earlier years, the source of cash so found and seized stand justified in terms of present and past savings of the assessee - HELD THAT:- As there is no contradiction in the alternate submission so made by the assessee before the Ld. CIT(A). Once the AO has recorded a finding that the cash so seized belongs to the assessee and not to any third person and rejected the initial explanation so furnished by the assessee, then in such a scenario, the onus shifts back on the assessee to explain the source of such cash found and seized from the possession of the assessee. In such a scenario, where the assessee came forward with an alternate submission that cash so found and seized is from his past earnings as duly reflected in his tax filings as accepted by the tax authorities and past savings which have been accumulated therefrom, the said explanation has to be examined based on material available on record and cannot be summarily dismissed as has been done in the present case by the CIT(A). The tax filings for the year under consideration as well as for the earlier years are very much part of record and as far as claim of past savings and availability of cash in hand, the AR has submitted the details and which can be verified by the authorities. Therefore, we agree with the submissions of the AR that the alternate contention was not rightly appreciated by the Ld. CIT(A) and we deem it appropriate to set-aside the matter to the file of the CIT(A) to examine the alternate contention a fresh as per law after providing reasonable opportunity to the assessee. Appeal of the assessee is allowed for statistical purposes.
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