Alfa Modern Mobiles Pvt. Ltd. vs ITO

Parties Involved

Facts Summary

The assessee company is engaged in the trading of mobile phones and filed its return of income for the A.Y. 2017-18 on 08.11.2017, declaring total income at INR 8,38,870/-. The case was selected for scrutiny through CASS on the issue of abnormal increase in cash deposits during demonetization period as compared to pre-demonetization period. Notice u/s 143(2) was issued on 24.09.2018. Thereafter, notices u/s 142(1) and show cause notice were issued with detailed questionnaire from time to time. In response, the assessee company filed its replies alongwith part details. Thereafter, the AO assessed the income of the assessee at INR 1,25,60,336/- vide assessment order dated 22.12.2019 passed u/s 143(3) of the Act.…

Legal Issues

• 1. Addition of 280,55,000/- under Section 69A
• 2. Cash deposits disclosed in books of accounts
• 3. Explanation for sundry creditors amounting to 29,81,925/-
• 4. Disallowance of 50% of business promotion expenses
• 5. Addition of ₹5,00,000/- related to Keyman Insurance
• 6. Disallowance under Section 40(a)(ia) for non-deduction of TDS

Judgment Outcome

Decided in favour of Assessee.

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