ANANTPUR KALPANA,GANGAVATHI vs. INCOME TAX OFFICER, WARD-1, BANGALORE

ITA 541/BANG/2021Status: DisposedITAT Bangalore13 December 2021AY 2017-188 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the cash deposits represented sale proceeds from the assessee's business, which had already been offered for taxation, adding them again under Section 68 would amount to double taxation. The Tribunal also noted that the assessee had sufficient stock and sales were accounted for in the regular books of accounts.

What were the facts?

The assessee, a proprietrix of a business dealing in beedi, tea powder, and pan masala, deposited old currency notes (declared as not legal tender post-demonetization) into her bank accounts. The Assessing Officer (AO) treated these deposits as unexplained cash credits under Section 68, leading to an addition to her income.

What were the issues?

Whether deposits of demonetized currency notes, representing business sale proceeds already offered for taxation, can be treated as unexplained cash credits under Section 68, leading to double taxation.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

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IN THE INCOME TAX APPELLATE TRIBUNAL “SMC-B” BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT Assessment Year : 2017-18 1/1/1, Mahalaxmi Enterprises, Ward – 1, Hosakeri, Building Bamboo Bazar, Koppal.

Gangavathi – 583 227, Karnataka. PAN : CLEPK 8005 L Assessee by : Shri. Raghavendra Chakravarthy, CA Revenue by : Shri. Ganesh R. Ghale, Standing Counsel for the Department Date of hearing : 09.12.2021 Date of Pronouncement : 13.12.2021 O R D E R er N. V. Vasudevan, Vice President This is an appeal filed by the assessee against order dated 16.08.2021 of CIT(A) National Faceless Appeal Centre (NFAC), Delhi, relating to Assessment Year 2017-18. 2. The assessee is an individual. She is proprietrix of a business in the name and style of Mahalaxmi Enterprises. The business consists of dealing in beedi, tea powder and pan masala. For Assessment Year 2017-18, the assessee filed return of income declaring total income of Rs.4,49,520/-. In the course of assessment proceedings, the AO noticed that there were several cash deposits in the two bank accounts of the assessee. Out of the aforesaid cash deposits, the AO culled out, the deposits that was made of b

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