TaxTMI 
TaxTMI 
2026 (9) TMI 506
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.... return of income for the Assessment Year 2018-19 on 31/10/2018, declaring total income of Rs. 5,88,06,210/-. The return of income was summarily processed u/s 143(1) of the Act. The assessee was subjected to search action u/s 132 of the Income-tax Act, 1961 which was conducted on 21/09/2017, at No. 859, 3rd Block, 13th Main, Koramangala, Bengaluru in connection with search proceedings in the group case of Coffee Day Global Limited, Coffee Day Enterprises Limited, Shri. V.G. Siddhartha and others. Consequent to the search action, the PAN of the assessee was centralized vide notification u/s 127 of the Act in F.No. 80/Notifn /PCIT-2/2017-18 dated 02.02.2018. Subsequently, notice u/s 143(2) of the Act dated 12.02.2019 was issued to the assesse....
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....furnish details. The assessee furnished a reply letter dated 06/03/2024. The Ld AO after examining/perusing the submissions of assessee, found that the assessee has reiterated the submission which was made during the original assessment proceedings. The Ld AO therefore considered the foreign currency found at the premise of the assessee valued at Rs. 48.38/- Lakhs as unexplained money u/s 69A r.w.s 115BBE of the Act. 6. In the meantime, the Enforcement Directorate (ED) confiscated the foreign currency u/s 13(2) of FEMA and imposed a penalty of Rs 50,47,008.70 for contravening of Section 9(a) of FEMA r.w. Regulation 3 of Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations 2015 and Regulation 7 of (Foreig....
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....T Rules. 8. That the authorities below erred in making a double addition of Rs. 9,96,545/- overlooking the fact that it was already recorded in the books of accounts and offered for tax. 9. Without prejudice the authorities below erred in not allowing the entire sum as allowable loss since the same was handed over to the Enforcement Directorate and that the assessee has no longer been in possession of the foreign currency. 10. For the above and other grounds and reasons which may be submitted during the course of hearing of this appeal, the assessee requests that the appeal be allowed as prayed and justice be rendered. 9. Ground No 1,2,3 &10 are general in nature and needs no adjudication. Ground No 4 challenge....
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....is applicable for cases otherwise than by making a fresh assessment or reassessment and we are of the opinion that Ld CIT(A) has rightly adjudicated the applicability of 153(3) of the Act. Therefore, ground no 4 is dismissed. 11. The core issue agitated by the assessee emanating from the ground No 5,6,7,8 & 9 are with respect to the addition of Rs. 48,38,000/- u/s 69A r.w.s. 115BBE of the Act. The Ld AR submitted that during the assessment proceedings notice under section 133(6) of the Act was sent to the persons from whom the foreign currencies were received, calling details including their passport copies, identity, capacity and genuineness of the source of foreign currency. However, he submitted that the AO chose to disregard and disb....
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....e's case. The Ld AO therefore proceeded to make an addition u/s 69A for Rs 48,38,000. The contention of the Ld AO is that email correspondence and confirmations dated 17th October 2017, is an afterthought of the assessee, since it is after the date of search. 16. We also find that the assessee stated that the foreign currency was on account of travel/daily allowances given by various companies which had to be refunded to them. During the statement given by the assessee before the ED, his submission was that the foreign currency kept with him was given by sister in law towards charitable purpose and to establish a Trust, which is contradicting the earlier statement offered before the income tax authorities. 17. It was also found that a....