ASHOK CHADDHA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is an appeal under Section 260A of the Income Tax Act (hereinafter referred to as 'the Act') directed against the order dated 17.09.2010 of the Income Tax Appellate Tribunal (hereinafter, 'the Tribunal' for short) pertaining to assessment year 2004-05. The following issues arise for our consideration:

(2.) A search under section 132(1) of the Act was carried out in the residential premises of the assessee as well as his locker with Union Bank of India. In the course of search, cash amounting to Rs. 22,500.00 and jewellery of the value of Rs. 4,15,879.00 was found at the residence and jewellery of the value of Rs. 2,77,703.00 was found in the locker. A notice under section 153A was issued to the assessee, in response to which he filed a return declaring total income of Rs. 90,080.00. Two questionnaire dated 07.12.2007 and 27.12.2007 were issued to the assessee which were duly complied by him. After hearing the assessee, the total income was computed at Rs. 23,31,760.00.

(3.) ANOTHER ground taken before the CIT (A) was against the addition of Rs. 10 lakh u/s 69A of the Act in the hands of assessee in respect of cash seized from Shri Dalbar Singh Rawat, an employee of the assessee, at Bhopal Railway Station. The assessee contended that the amount belonged to his nephew Shri Sudhir Chadha, who had sent the money for some property transaction and Rawat was acting only as a carrier. To support this contention, he filed a copy of recovery suit filed by Shri Sudhir Chadha. The CIT (A) did not accept the explanation of the assessee observing as under: