Aahan Trading Company v. ITO

Parties Involved

Facts Summary

The assessee, Aahan Trading Company, is engaged in the business of transportation and commission income. The assessment was reopened under section 147 of the Income-tax Act, 1961 after expiry of four years from the end of the relevant assessment year. The assessee filed the return of income declaring total income of Rs.6,912/-. The reopening was based on information received from the ADIT (Investigation), indicating that the assessee had deposited cash of Rs.16,82,880/- in various bank accounts. The assessee explained that the cash deposits were duly recorded in the books of account and the source was fully explainable. However, the Assessing Officer did not accept the explanation and made an addition under section 69A of the Act. The assessee appealed to the Ld. CIT(A), but the appeal was dismissed and the addition was sustained. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Validity of the reopening of assessment under section 147 of the Income-tax Act, 1961

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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