Akheto Yepthomi Vs. Income Tax Officer, Ward 1, Dimpaur

Parties Involved

Facts Summary

The assessee, Akheto Yepthomi, filed a return of income declaring a total income of Rs. 60,880/- and claimed exemption u/s 10(26) of the Income Tax Act, 1961 for Rs. 34,40,680/-. During the scrutiny of the return, it was noticed that the assessee had deposited a large amount of cash in his bank accounts. The case was selected for complete scrutiny, and statutory notices were issued. Despite multiple opportunities, the assessee provided a delayed response only after receiving a show cause notice. The assessee claimed that the cash deposits were from sales receipts, service receipts, and past savings. He also claimed exemption under section 10(26) as he belongs to a Scheduled Tribe and is engaged in business activities. However, he failed to maintain proper books of accounts as required under section 44AA and did not obtain an audit report as per section 44AB. The Assessing Officer treated the cash deposits as unexplained money u/s 69A and initiated penalty proceedings u/s 271B.…

Legal Issues

• 1. Whether the addition of Rs. 87,05,746/- u/s 69A is justified.
• 2. Whether the penalty u/s 271B is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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