SHREY ASSOCIATES,JAIPUR vs. ACIT, CIRCLE-3, JAIPUR, JAIPUR

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ITA 127/JPR/2024Status: DisposedITAT Jaipur24 June 2024AY 2017-18Bench: DR. M.L. MEENA, AM, SHRI NARINDER KUMAR (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the Assessing Officer had not conducted a detailed inquiry and erred in applying the Human Probability Test for the remaining amount after accepting a portion of the deposit. Therefore, the addition of Rs. 11,50,000 was deleted.

What were the facts?

The assessee, a partnership firm, deposited old currency notes amounting to Rs. 49,24,000 during the demonetization period. The Assessing Officer treated Rs. 11,50,000 of this deposit as unexplained cash credit under Section 68, which was upheld by the CIT(A).

What were the issues?

Whether the addition of Rs. 11,50,000 as unexplained cash credit under Section 68 was justified, considering the assessee's explanation and the AO's inquiry.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 145(3)

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Income Tax Appellate Tribunal, JAIPUR BENCHES, “B-Bench” JAIPUR

Before: DR. M.L. MEENA, AM, & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 127/JPR/2024

Hearing: 21/05/2024Pronounced: 24/06/2024
26.

For the foregoing reasons and discussion, finding merit in the contentions raised on behalf of the assessee as regards the only challenge to the addition of Rs.11,50,000/- on account of unexplained cash credits, we deem it a fit case where said addition deserves to be deleted. We order accordingly.

27.

Consequently, this appeal is allowed to this extent and the impugned order by Learned CIT(A) and the impugned assessment framed by Learned Assessing Officer is set aside as regards the said addition of Rs.11,50,000/-.

Shrey Associates vs. ACIT Learned Assessing Officer to give effect to this decision in accordance with law.

Order pronounced under Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 by placing the details on the notice board.

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