The Tax Publishers2020 TaxPub(DT) 4828 (Karn-HC) : (2021) 431 ITR 0144 : (2021) 276 TAXMAN 0388

INCOME TAX ACT, 1961

Section 153A

Where assessee did not produce any material, despite opportunity being afforded to show that the amount seized during the search, did not belong to it but belonged to some other person as claimed by it; the addition made in the hands of the assessee on account of cash seized during the search would be sustainable.

Search and seizure - Assessment under section 153A - Undisclosed income - Cash seized during search

During course of search under section 132 in case of assessee, some cash was found and seized. Accordingly, the AO passed an order of assessment under section 143(3) read with section 153A and made addition on account of such cash amount seized during the search. Assessee submitted that the seized cash did not belong to it but belonged to some other person 'S' and 'S' had already paid tax on the said amount. Held: Assessee did not produce any material, despite opportunity being afforded to show that the amount seized during the search did not belong to it but belonged to 'S'. Further, it is well settled that the High Court in exercise of powers under section 260A cannot interfere with the finding of fact until and unless the same is demonstrated to be perverse. Accordingly, the addition made on account of cash seized during the search was sustained.

REFERRED : Syeda Rahimunnisa v. Malan Bi (Dead) by L. Rs. & Anr. [C.A. 2875 OF 2010, dt. 3-10-2016] and Pr. CIT v. Softbrands India P. Ltd. (2018) 406 ITR 513 (Karn) : 2018 TaxPub(DT) 3520 (Karn-HC).

FAVOUR : Against the assessee.

A.Y. : 2004-05



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