It is not uncommon for a lady who is on her own to have cash for emergencies. ITAT upholds the deletion of addition for cash found during search
ABCAUS Case Law Citation:
ABCAUS 2815 (2019) (03) ITAT
The Revenue had filed the instant appeal against the order of Commissioner of Income Tax (Appeals) in deleting the addition relating to unaccounted cash found during the search.
During the income tax search, Rs. 1,00,000/- was found in the residence of the assessee. The Assessing Officer recorded in the assessment order that the assessee in answer to a question, had explained that this amount belonged to his mother.
The Assessing Officer, observed that the appellant was unable to furnish any documentary evidence for this claim.
During the course of assessment, the explanation that cash belong to his mother, with reference to returns of income for two assessment years of the mother was not accepted by the Assessing Officer as these returns had been filed, after the search.
Before the CIT(A), the assessee contended that the residence where cash was found belonged to the appellant’s father and his mother had been residing there alone.
It was submitted that the cash was seized from the pooja room and a lady of 80 years definitely can have a cash balance of ₹ 1,00,000/- for purposes of emergency. The appellant could not naturally have any documentary evidence since it belonged to his mother.
He further contended that the capital of the mother who was an assessee even prior to search, in her returns was around ₹ 25,00,000/-. In view of the above, not accepting the latest returns just because they have been filed after the search was not justified
The CIT(A) opined that it is not uncommon for a lady who is on her own to have Rs. 1,00,000/- for emergencies. The amount also was reflected in the return filed.
Accordingly, the CIT(A) directed the addition to be deleted.
The Tribunal dismissed the appeal of the Revenue as the Revenue could not assail the specific finding recorded by the CIT(A)