Sunil Kumar Gattani vs The Asstt. Commissioner Of Income Tax

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The assessee-appellant challenged the order of the Commissioner of Income Tax (Appeals), Jaipur-4 dated 31/07/2025 for Assessment Year 2019-20, which arose from an assessment order dated 15.04.2021 passed under section 143(3) of the Income Tax Act, 1961 by the ACIT, Central Circle-02, Jaipur. The assessment was made in the backdrop of a search and seizure action under section 132 conducted on 06.09.2018 against members of the Oswal Soap Group, of which the assessee was allegedly a member.

The principal disputes related to additions of Rs. 1,56,15,565/- on account of cash found during search proceedings under section 69A, and Rs. 99,29,064/- on account of jewellery found during search under section 69, both subjected to tax under section 115BBE. The assessee contended that the cash represented accumulated business income from finance brokerage duly admitted in statements recorded under section 132(4), and that the jewellery had been declared under VDIS 1997, with a retraction filed after the search.

Additionally, an addition of Rs. 1,069/- was made on account of alleged undisclosed brokerage income based on documents found at third-party premises, which the assessee contested on grounds of violation of natural justice, absence of cross-examination opportunity, and the principle that only real income can be taxed. The assessee also sought admission of additional grounds challenging the validity of the assessment order on the ground that no notice under section 143(2) was issued, rendering the order void ab initio.

Catchwords: search and seizure section 132 unexplained money section 69A unexplained jewellery section 69 section 115BBE cash found during search finance brokerage VDIS 1997 retraction of surrender undisclosed income notice under section 143(2) jurisdiction natural justice cross-examination real income assessment year 2019-20