Shri Mukesh Sachdeva , Bhopal V. The DCIT ,Central-2 Bhopal, Bhopal

ITA 332/Ind/2020

AI Insights

The case involves Mukesh Sachdev, who appealed against the order of the Commissioner of Income-Tax (Appeals)-3, Bhopal, which confirmed the addition of Rs.5,94,500 to his income for the Assessment Year 2018-19. This addition was initially made by the Deputy Commissioner of Income Tax, Central-II, Bhopal, following a search operation under Section 132(1) of the Income Tax Act, 1961, at Sachdev's premises. The search revealed unexplained cash, and despite some amount being explained, a significant portion remained unaccounted for. The Tribunal dismissed the appeal, agreeing with the lower authorities' findings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122524 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-12-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 22-11-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 153A; 69B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE (Convened through Virtual Court) BEFORE Ms. MADHUMITA ROY, JUDICIAL MEMBER& SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT MEMBER I. T . A . N o. 33 2/ I nd/ 20 20 ( A s s e ss me nt Y ea r: 20 18 - 19 ) Mu k e s h S ach d e va F -10 9, Ind us t r i a l A r ea , G ovi nd pur a , Bho p a l (M . P . ) - 46 20 23 V s. D C I T Ce nt r a l -I I, Bh o p al P A N N o . A C P P S 75 69B (Appellant) . . (Respondent) Appellant by : None Respondentby: Shri Ashish Porwal, Sr.D.R. D ate of H ea ri n g 22.12.2022 D ate of P ro n ou n ce me n t 24.01.2023 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 22.09.2020 passed by theCommissioner of Income-Tax(Appeals)-3, Bhopal (in short ‘the CIT(A)’),arising out of the order dated 24.12.2019passed by the DCIT, Central-II, Bhopalunder Section 153A r.w.s. 143(3)of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2018-19. 2. The assessee has come up in appeal against the addition of Rs.5,49,500/- made by the Ld. AO, which was further confirmed by the Ld. CIT(A) on 22.09.2020 for A.Y. 2018-19. ITA No.332/Ind/2020 [ShriMukesh Sachdevavs. DCIT]Asst.Year.–2018-19 - 2 - 3. None appeared at the time of call on behalf of the assessee. It further appears from the records that previously in many occasions, though the matter was taken up for hearing, the Ld. Counsel appearing for the assessee did not make appearance before us neither any submission was made. Under this circumstance, we proceed to dispose of the appeal. 4. The brief facts leading to this case is this that a search under Section 132(1) of the Act was conducted in assessee’s business and residential premises, as well as other concerns/business associates on 12.01.2018. Return was subsequently filed and examined and notice under Section 143(2) of the Act for A.Ys. 2012-13 to 2017-18 was issued on 14.03.2019. The assessee has earned income from other sources, capital gain and business income. 5. During the assessment proceedings, upon considering the submissions and documents made by the assessee, the Ld. AO asked the assessee to explain the source of cash of Rs.7,49,500/- seized from his Locker No. 24, DBI SME Branch, Bhopal during the search on 05.02.2018. According to the affidavit affirmed by the mother, an amount of Rs.6,00,000/- in cash was given to the assessee for safe-keeping. It further appears from the records that as per the statement of assessee recorded on 12.01.2018 no cash was disclosed and the said lockers alongwith jewellery belonging to his mother, his wife and his daughter was recorded. Neither the assessee was able to prove that cash was withdrawn from his Bank. However, out of the cash seized, the source of Rs.2000/- and Rs.500/- denomination notes remained unexplained and only cash to the tune of Rs.1,55,000/ was explained. In that view of the matter, the new note seized of Rs.2000/- and Rs.500/- denomination totalling to Rs.5,94,500/- was ITA No.332/Ind/2020 [ShriMukesh Sachdevavs. DCIT]Asst.Year.–2018-19 - 3 - added to the total income of the assessee alongwith some other additions in respect of gold jewellery found during search. 6. Before the First Appellate Authority, when the appeal was preferred by the assessee, the addition made by the Ld. AO to the tune of Rs.31,46,655/- in respect of gold jewellery was deleted, but, keeping in view the mother was not having any regular source of income and the statement recorded from MukeshSachdeva, the appellant herein, not been able to explain such source of cash, the addition made by the Ld. AO amounting to Rs.5,94,500/- stood confirmed by the Ld. CIT(A). In view of the particular fact and circumstance of the case and the reason assigned by the Ld. CIT(A) as discussed hereinabove, we find no ambiguity in the order passed by the Ld. CIT(A) in confirming the impugned addition. The same is, therefore, upheld. The assessee’s appeal is, thus, dismissed. 7. In the result, assessee’s appeal is dismissed. This Order pronounced on 24/01/2023 Sd/- Sd/- (BHAGIRATH MAL BIYANI) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore; Dated 24/01/2023 S. K. Sinha, Sr. PS आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. िवभागीय ितिनिध, / DR, ITAT, Indore 6. गाड फाईल / Guard file. आदेशान ु सार/ BY ORDER, (Sr. Private Secretary) ITA No.332/Ind/2020 [ShriMukesh Sachdevavs. DCIT]Asst.Year.–2018-19 - 4 - ITAT, Indore 1 . D a t e o f d i c t a t i o n o n 0 2 . 0 1 . 2 0 2 3 2 . D a t e o n w h i c h t h e t y p e d d r a f t i s p l a c e d b e f o r e t he D i c t a t i n g M e m b e r 0 2 . 0 1 . 2 0 2 3 3 . D a t e o n w h i c h t h e a p p r o v e d d r a f t c o m e s t o t h e S r .P . S . / P . S . 4 . D a t e o n w h i c h t h e f a i r o r d e r i s p l a c e d b e f o r e t h e D i c t a t i n g M e m b e r f o r p r o n o u n c e m e n t 5 . D a t e o n w h i c h t h e f a i r o r d e r c o m e s b a c k t o t h e S r. P . S . / P . S 6 . D a t e o n w h i c h t h e f i l e g o e s t o t h e B e n c h C l e r k 7 . D a t e o n w h i c h t h e f i l e g o e s t o t h e H e a d C l e r k ... ... ... .... 8 . T h e d a t e o n w h i c h t h e f i l e g o e s t o t h e A s s t t . R e gi s t r a r f o r s i g n a t u r e o n t h e o r d e r ... ... ... ... ... ... ... ... 9 . D a t e o f D e s p a t c h o f t h e O r d e r ... ... ... Date on which the typed draft is placed before the Dictating Member 19.12.2019Other Member..................Date on which the approved draft comes to