Bhavesh Chandrakant Gandhi, Nagpur V. DCIT, Central Circle-1(2), Pune, Pune

ITA 31/PUN/2023

AI Insights

The case involves Bhavesh Chandrakant Gandhi, an individual engaged in providing accommodation entries, who appealed against the order of the CIT(A) confirming the addition of Rs.10,55,000 as unexplained cash. The cash was discovered during search and seizure operations under section 132 of the Income Tax Act, 1961, conducted on 06.11.2019. The assessee was unable to explain the source of the cash during the initial inquiry and later claimed it was business income, which was rejected by the Assessing Officer. The CIT(A) upheld this decision, leading to the current appeal before the Income Tax Appellate Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137629 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 05-04-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 05-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: JAYDEEP KATARIYA
• Keywords: Search and seizure
• Section: 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.31/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2020-21 Bhavesh Chandrakant Gandhi, Mahaveer Steels New Iron Market, Anaj Bazar, Itwari, Nagpur- 440002. PAN : ACLPG1302L Vs. DCIT, Central Circle- 1(2), Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)- 11, Pune [‘the CIT(A)’] dated 30.11.2022 for the assessment year 2020-21. 2. Briefly, the facts of the case are that the appellant is an individual engaged in the business of providing accommodation entries. The Return of Income for the assessment year 2020-21 was filed on 09.03.2021. Subsequently, search and seizure operations u/s 132 of the Income Tax Act, 1961 (‘the Act’) were conducted in the assessee’s case on 06.11.2019. During the course of search and seizure operations, cash of Rs.10,55,000/- was found in the Locker Assessee by : Shri Jaydeep Katariya Revenue by : Smt. Sonal L. Sonkavde Date of hearing : 12.04.2023 Date of pronouncement : 12.04.2023 ITA No.31/PUN/2023 2 No.630 with Nagpur Nagri Sahakari Bank Ltd., Lakadganj, Nagpur belonging to the appellant. When the appellant was called upon to explain the source of such cash found in locker, the appellant could not explain the source of cash in the statement recorded u/s 132(4) of the Act. Even during the course of statement recorded u/s 132(4), the appellant had submitted that he had been engaged into providing accommodation entries in consideration of some commission income. However, during the course of assessment proceedings, the appellant submitted that the cash found in locker belongs to his business and cash in hand. The Assessing Officer rejecting the said explanation of the appellant made addition of Rs.10,55,000/- as unexplained cash u/s 69A of the Act. 3. Being aggrieved by the above addition, an appeal was filed before the ld. CIT(A), who vide impugned order confirmed the addition by passing a reasoned and detailed order. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. I heard the rival submissions and perused the material on record. From the impugned order of the ld. CIT(A), it would be clear that the assessee was unable to offer any cogent explanation in support of the source for cash found during the course of search and seizure operations. Therefore, I do not find any reason to interfere ITA No.31/PUN/2023 3 with the impugned order of the ld. CIT(A). Accordingly, the order passed by the CIT(A) is affirmed. 6. In the result, the appeal filed by the assessee stands dismissed. Order pronounced on this 12 th day of April, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 12 th April, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-11, Pune. 4. The Pr. CIT (Central), Pune. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.