[aaykarbhavan] Income Tax : Cash found during the search – The time gap between the cash withdrawal and the date of search was only two full days, thus, it may not be correct to reject the explanations furnished by the assessee without bringing any material on record to contradict the same - Tri

ITAT HYDERABAD - Income Tax

Sri B. Krishnaiah, Hyderabad Versus The DCIT, CC. 6, Hyderabad

Addition on account of unexplained income – Cash found during the search – Held that:- The assessee has withdrawn a sum of Rs.7.00 lakhs on 17.08.2009 from the bank account maintained in his name with M/s Vijaya Bank - The search took place on 20-08-2009 and the revenue found cash balance of Rs. 6,31,100/- at his residence - the cash found at the time of search was lesser than the amount withdrawn from the bank two days prior to the date of search - CIT(A) that the first appellate authority is only talking about the possibility of the amount being spent away on the reasoning that the assessee is in building development business and hence he would not keep the money idle.

The time gap between the cash withdrawal and the date of search was only two full days, thus, it may not be correct to reject the explanations furnished by the assessee without bringing any material on record to contradict the same - the explanation of the assessee about the sources of the cash found during the course of search have to be examined on the basis of evidences and explanations furnished by the assessee - There is no material to show that the money so withdrawn was spent away or utilized for any other purpose - assessee has explained the sources of the cash found at his residence at the time of search – thus, no addition is warranted and the order of the CIT(A) set aside – Decided in favour of Assessee.

 

Regards

Prarthana Jalan

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