Question 1

What are the key legal issues in Ashish Gupta Vs. Deputy Commissioner of Income Tax, Circle-8, New Delhi?

Accepted Answer

1. Whether the assessment order has been passed without DIN. 2. Whether the cash of Rs.19,00,000/- is taxable under section 69A r.w.s. 115BBE of the Income Tax Act, 1961.

Question 2

What are the facts of Ashish Gupta Vs. Deputy Commissioner of Income Tax, Circle-8, New Delhi?

Accepted Answer

The relevant facts giving rise to this appeal are that the search operations were carried out on the assessee along with Sanjay Singhal Group of cases on 15.11.2017. During the search operations, the cash of Rs.19,00,000/- was seized from the residential premises of the assessee. The statement of the assessee was recorded during the search operations raising specific queries with respect to the said cash. However, the Authorized Officer of Search Team was not satisfied with explanations of the assessee. He therefore, seized cash of Rs.19,00,000/-. The assessee had filed his original Income Tax Return on 27.10.2018 declaring income of Rs.27,89,040/-. Since, the search was conducted in November, 2017; therefore, the case of the relevant year was picked up for scrutiny. During the course of assessment proceedings, the assessee claimed that the said cash of Rs.19,00,000/- was part of the cash-in-hand of Arnav Trading, his proprietary concern. Therefore, the same could not be treated as unexplained. However, the Assessing Officer opining that the assessee, during the search operation, had not admitted in the statement that the said cash belonged to Arnav Trading; therefore, the same was unexplained and taxed the same under section 69A r.w.s. 115BBE of the Act. The assessee did not get any relief from the CIT(A).

Ashish Gupta Vs. Deputy Commissioner of Income Tax, Circle-8, New Delhi

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