Unexplained cash found in search sustained where the assessee failed to rebut the statutory presumption of ownership.

Cash found in the assessee's possession during search was treated as unexplained because the assessee failed to rebut the rebuttable presumption under section 132(4A) and produced no material showing that the cash belonged to the Congress (I) party. The statements of party officials and verification of the party's books did not support the explanation, and the Tribunal's factual finding on ownership was not shown to be perverse. The section 69A addition was therefore sustained, and no substantial question of law arose.

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Issues: Whether the addition under section 69A of the Income-tax Act, 1961, based on cash found during search, was sustainable when the assessee failed to rebut the presumption arising under section 132(4A) of the Income-tax Act, 1961.

Analysis: Cash was found in the assessee's possession during search, and his initial denial was not retracted. The statutory presumption arising from possession was rebuttable, but the assessee offered no material to support the claim that the cash belonged to the Congress (I) party. The statements recorded from the party officials and the verification of its books did not support the assessee's explanation. The finding on ownership and unexplained cash was based on appreciation of facts, and no perversity in the Tribunal's order was shown. In such circumstances, no substantial question of law arose.

Conclusion: The addition under section 69A was upheld and the assessee's challenge failed.

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