TACK EXIM PVT. LTD.,KANPUR vs. ACIT CIRCLE2(3)(1), KANPUR

ITA 324/LKW/2024Status: DisposedITAT Lucknow29 November 2024AY 2017-18Bench: SHRI. SUDHANSHU SRIVASTAVA (Judicial Member), SHRI NIKHIL CHOUDHARY (Accountant Member)42 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO could not make the addition solely on the ground of dealing in SBNs during demonetization. It also found that taxing the cash deposit, which represented sale proceeds already accepted as income, would amount to double taxation.

What were the facts?

The assessee company engaged in leather manufacturing and export declared income of Rs. 30,39,720. During demonetization, it realized Rs. 5,65,74,051 in cash, deposited Rs. 1,25,82,000 in Specified Bank Notes (SBNs), and made cash payments. The AO added the SBN deposit as unexplained income under Section 68.

What were the issues?

Whether cash deposits made in SBNs during demonetization can be added as unexplained income under Section 68, and whether such an addition leads to double taxation.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE,Section 271AAC

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Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI NIKHIL CHOUDHARY

For Appellant: Shri Rakesh Garg, Advocate
For Respondent: Shri Sanjeev Krishna Sharma, D.R

PER SUDHANSHU SRIVASTAVA, J.M.:

This appeal has been preferred by the assessee against the order dated 09.03.2024, passed by the ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi for Assessment Year 2017-18. 2. The brief facts of the case are that the assessee- company is engaged in the business of manufacturing and export of leather and leather products. The assessee filed its return of income for the year under consideration on 07.11.2017, declaring a total income of Rs.30,39,720/-. The case of the assessee was selected for scrutiny under CASS. The Assessing Officer (AO)

ITA No.324/LKW/2024 issued notices under section 143(2)

The order continues below.

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