Cash in lockers belonged to temple trust and foundation, not family members, addition deleted

ITAT Delhi allowed the assessee's appeal regarding cash found in lockers during search proceedings. The tribunal found that cash in two lockers belonged to RNB Temple Trust and Ram Bajaj Foundation, not to Bajaj family members. The cash amounts matched declarations in the entities' balance sheets and were earmarked for temple construction and educational institution operations. Since 95% of submissions were accepted by CIT(A) and no evidence proved the cash belonged to family members beyond presumption, the tribunal deleted the addition made by CIT(A), ruling in favor of the assessee.

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Issues Involved:

1. Jurisdictional Validity of the Assessment Order under Section 153A.
2. Legality of the Search and Seizure Operation.
3. Addition of Cash Found During Search as Unaccounted Income.
4. Interest Charged under Sections 234B and 234C.
5. Validity of Proceedings without Document Identification Number (DIN).

Detailed Analysis:

1. Jurisdictional Validity of the Assessment Order under Section 153A:

The assessee contended that the assessment order under Section 153A read with Section 143(3) was illegal due to lack of valid jurisdiction. However, during the hearing, the assessee did not press this issue, and it was not adjudicated upon by the Tribunal.

2. Legality of the Search and Seizure Operation:

The assessee argued that the search operation conducted was unlawful and invalid. The search was carried out under Section 132 of the Income-tax Act, 1961, at premises associated with the Bajaj Group, including the assessee's premises. The Tribunal did not specifically address this issue as it was not pressed during the hearing.

3. Addition of Cash Found During Search as Unaccounted Income:

The primary issue addressed by the Tribunal was the addition of cash found during the search operation. Cash amounting to Rs. 63,00,000 was found in lockers jointly held by the assessee and others. The assessee claimed that the cash belonged to RNB Temple Trust and Ram Bajaj Foundation. The CIT (A) partially accepted the assessee's explanation, attributing Rs. 1,75,00,000 to RNB Temple Trust based on audited financial statements. However, Rs. 18,00,000 was added as unaccounted income of the assessee under Section 69A for lack of satisfactory evidence. The Tribunal found that the cash found was consistent with the amounts recorded in the financial statements of the Trust and Foundation, and there was no evidence to suggest the cash belonged to the assessee personally. Thus, the Tribunal deleted the addition of Rs. 18,00,000, accepting the assessee's explanation.

4. Interest Charged under Sections 234B and 234C:

The issue of interest charged under Sections 234B and 234C was consequential and not specifically addressed, as the primary addition was deleted.

5. Validity of Proceedings without Document Identification Number (DIN):

The assessee raised the issue of the assessment order being invalid due to the absence of a Document Identification Number (DIN) as mandated by CBDT Circular No. 19/2019. However, this issue was not pressed during the hearing and was not adjudicated by the Tribunal.

Conclusion:

The Tribunal allowed the appeal, holding that the cash found during the search was explained satisfactorily as belonging to RNB Temple Trust and Ram Bajaj Foundation. The addition of Rs. 18,00,000 as unaccounted income was deleted, and the appeal was decided in favor of the assessee.

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