MAISIL MERCANTILE PRIVATE LIMITED,HYDERABAD vs. COMMISSIONER OF INCOME TAX, HYDERABAD

This appeal of the assessee for the assessment year 2017-18 is directed against the order dated 08.12.2023 passed by the ld. Commissioner of Income-tax (Appeal), NFAC, Delhi.

Fact in brief is that assessment in the case of the assesse was finalized u/s 144 of the Act on 25.09.2019. During the course of assessment, the assessing officer issued notice u/s 142(1) of the Act asking the assessee to furnish the true and correct return of income in respect of which it is assessable under the Income Tax Act, 1961 for the previous year relevant to A.Y. 2017-18. However, the assessee has failed to furnish the return of income for A.Y. Maisil Mercantile Private Limited A.Y. 2017-18 2017-18 either u/s 139 (on or before 31.03.2018) and also failed to furnish Income Tax Return in response to notice issued u/s 142(1) of the Act.

On the basis of data analytics and information gathered during the phase of online verification under ‘Operation Clean Money’, the Income Tax Department gathered a list of assessee who had deposited substantial cash in bank account during the demonetization. As per such information the assessee had deposited cash of Rs. 87,00,000/- in its bank account during the demonetization period 09.11.2016 to 30.12.2016 in old currency and assessee failed to response to the notices issued u/s 142(1) requiring the assessee to explain the source of cash deposit made in the bank account during the demonetization period. Therefore, the AO has completed the assessment u/s 144 of the Act and treated the amount of Rs. 87,00,000/- cash deposited in the bank account maintained in the State Bank of India and Corporation Bank in the F.Y. 2016-17 as unexplained u/s 69A of the Act and added to the total income of the assessee.