2024 (3) TMI 250 - AT - Income Tax

Tribunal Upholds Addition of Rs. 1,10,574 as Unaccounted Income After Search Reveals Foreign Currency.

RNB Infrastructure Private Limited Versus DCIT, Central Circle-32, New Delhi.

RNB Infrastructure Private Limited Versus DCIT, Central Circle-32, New Delhi. - TMI Issues involved: Addition of foreign currency as unaccounted income in the hands of the assessee.The appeal was made against the order of the CIT(A)-30, New Delhi, pertaining to A.Y. 2018-19. The main issue argued was the addition of Rs. 1,10,574/- by the AO on account of foreign currency found during a search, treating it as unaccounted income.A search and seizure operation was conducted at various premises of Bajaj Group and its associates, including the assessee and its Directors. During the search at a specific premise, foreign currency of 12 different countries valued at Rs. 1,10,574/- was found. The assessee failed to provide any explanation, leading to the addition of this amount to their income, a decision which was upheld by the CIT(A).The Counsel for the assessee contended that the foreign currency found was remnants of currency taken by family members of the Group on their foreign travel. It was claimed that the currency belonged to six members of the Bajaj family. The Counsel pointed out that a similar query was raised during the assessment proceedings of Vikram Kumar Bajaj, where the explanation provided by him was accepted by the AO. The Counsel argued that since the currency was found in the possession of Vikram Bajaj, the addition should not be made in the hands of the assessee.On the contrary, the DR supported the AO's decision, stating that the assessee failed to provide any evidence to support their claim.After careful consideration of the orders of the authorities below, it was noted that the foreign currencies were indeed found in the possession of Vikram Bajaj. Although it was acknowledged that the currencies might be remnants of business trips taken by family members, the onus was on the assessee to provide evidence. The assessee presented invoices from M/s Bakshi Forex & Air Services (P) Ltd. for the purchase of foreign currency, mainly for US Dollar and Euro, while the currencies found were different. Therefore, the invoices did not support the assessee's case. Taking all facts into account, the Tribunal declined to interfere with the CIT(A)'s findings, resulting in the dismissal of the assessee's appeal.