ITA No.2665/Del/2022

Parties Involved

Facts Summary

The assessee, M/s Shiv Naresh Sports Pvt. Ltd., engaged in manufacturing and trading of sportswear and sports goods, filed its return of income for Assessment Year 2017-18 declaring a total income of Rs.2,90,49,410/-. The case was selected for scrutiny assessment, and a notice was issued to the assessee to explain the source of cash deposits of Rs.2,22,94,000/- made during the demonetization period. The assessee claimed that the deposits were from cash sales. However, the Assessing Officer (AO) treated the amount as unexplained credit and added it to the total income. Additionally, the AO disallowed a deduction of Rs.18,57,092/- claimed under Section 80JJAA due to incorrect filing of Form 10DA. Both additions were deleted by the Commissioner of Income Tax (Appeals) (CIT(A)).…

Legal Issues

• 1. Whether the cash deposit of Rs.2,22,94,000/- made during demonetization should be treated as unexplained credit under Section 68 of the Income Tax Act, 1961.
• 2. Whether the disallowance of deduction under Section 80JJAA to the tune of Rs.18,57,092/- was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Aakash Bhardwaj vs AO Circle-1

  Delhi Bench 'G', New Delhi benchAY 2024-25Allowed

• PR & Co. vs. The Income Tax Officer, Ward-2(1), Erode

• Satya Pal Shiv Kumar Vs ACIT, Circle-47(1), New Delhi

  Delhi Bench benchAY 2017-18Allowed

• Mayank Jain Vs Income-tax Officer, Ward-1(4), Meerut

  Delhi Bench benchAY 2017-18Allowed

• Capital City Hospitality Pvt. Ltd. Vs Income Tax Officer, Ward-5(1), New Delhi

• Global Educom Pvt. Ltd. vs. Income Tax Officer

  Ahmedabad bench