DCIT, CIRCLE-2(1)(1), MUMBAI, MUMBAI vs. M/S KUNDAN JEWELLERS PVT LTD, MUMBAI.

ITA 1035/MUM/2022Status: DisposedITAT Mumbai29 May 2023AY 2017-1851 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the cash deposits were substantiated by the assessee's cash sales, which were reflected in the audited books of accounts and offered for taxation. The addition under Section 68 would lead to double taxation.

What were the facts?

The assessee, a jeweler, made significant cash deposits during the demonetization period. The Assessing Officer treated these deposits as unexplained cash credits, leading to an addition to the income.

What were the issues?

Whether cash deposits made during demonetization, supported by cash sales reflected in audited books, can be treated as unexplained cash credits under Section 68. Whether KYC is mandatory for sales below Rs. 2 lakhs.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 250,Section 139A(5)(c)

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Cases cited in this judgment(10)Show list

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Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Hearing: 19.05.2023

PER PAVAN KUMAR GADALE JM: The revenue has filed the appeal against the order of the National Faceless Appeal Centre (NFAC)/CIT(A), Delhi passed u/s 143(3) and 250 of the Act. The revenue has raised the following grounds of appeal:

1.

"Whether on the facts and circumstances of the case and law the Ld. CIT(A) has erred in deleting the addition of Rs. 13,29,50,000/- made on account of cash deposits during the demonetization period in SBNs without appreciating the fact that the assessee could not M/s. Kundan Jewellers Pvt Ltd, Mumbai. substantiate the source being the cash sales with necessary corroborative evidences?" ii) "Whether on the facts and cir

The order continues below.

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