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Facts
The assessee declared an income of Rs. 11,34,16,250/- for AY 2017-18. The Assessing Officer (AO) made additions on account of unexplained money, disallowance of expenditure, and disallowance of sundry creditors, leading to an increased total income. The assessee's appeal to the CIT(A) was unsuccessful.
Held
The Tribunal held that the addition of Rs. 76.50 lacs for unexplained money was not justified as the assessee had provided a plausible explanation supported by cash withdrawals. The disallowance of expenditure of Rs. 17,92,629/- and sundry creditors of Rs. 38,29,272/- were set aside and remanded to the AO for fresh adjudication.
Key Issues
Whether the cash deposits made during demonetization were unexplained money, and if disallowances for expenditure and sundry creditors were justified.
Sections Cited
69A, 143(3), 234B, 37(1)
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Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad
आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-
1. 1. निर्धाररती/The Assessee : Sujatha Kancharla, H.No.6-3-855/10/A/1A, Sampathji Apartment, Opp. Green Park Hotel Lane, Ameerpet, Hyderabad – 500016, Telangana. 2. रधजस्व/ The Revenue : The Deputy Commissioner of Income Tax, Circle 6(1), Hyderabad.