Parag Suresh Vakharia v/s Asstt. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Parag Suresh Vakharia, is engaged in the business of sale and purchase of used cars. He filed his return of income on 31/03/2021, disclosing total income at ` 3,08,600. A search and seizure action under section 132 of the Income Tax Act, 1961 was conducted in connection with M/s. Swami Fuels Pvt. Ltd. During the search, a sum of ` 8,97,700 in cash was found at the assessee's residence. The assessee stated that ` 2,15,000 belongs to his used car business, ` 5,60,000 belongs to Swami Fuels Pvt. Ltd., and the remaining amount of ` 1,22,900 belongs to his family members. The Assessing Officer rejected the assessee's submissions and added ` 7 lakh as unexplained money under section 69A of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals), who deleted the addition of ` 5,60,000 but confirmed the addition of ` 1,40,000.…

Legal Issues

• 1. Whether the learned Assessing Officer is correct in passing the order dated 29.09.2021.
• 2. Whether the learned Assessing Officer is justified in adding back Rs. 1,40,000/- as Unexplained Money under Section 69A of the Income Tax Act, 1961.
• 3. Whether the order passed by the learned Assessing Officer is wrong, incorrect, illegal and void and without principle of natural justice.

Judgment Outcome

Decided in favour of Assessee.

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