Arpan Ashokkumar Jhunjhunwala vs. ITO, Ward 1(5), Aurangabad

Parties Involved

Facts Summary

The assessee, Arpan Ashokkumar Jhunjhunwala, filed his return of income for various assessment years declaring total income. However, during a search and seizure action in the case of M/s. Shri Renuka Mata Multi State Urban Cooperative Credit Society Ltd., it was observed that the assessee had an account with the society and the total unexplained cash credit/investment in the said account for the financial year 2014-15 i.e. assessment year 2015-16 was Rs.2,66,56,731/-. Accordingly, the case of the assessee was reopened under section 147 of the Income Tax Act, 1961 and a notice under section 148 of the Act was issued to the assessee. The assessee filed his return of income on 27.08.2022 declaring total income of Rs.11,14,670/- which was treated as invalid by the CPC. The Assessing Officer determined the total income of the assessee at Rs.2,77,71,401/- by making addition of Rs.2,66,56,731/- treating the same as unexplained cash credit under section 68 r.w.s. 115BBE of the Act.…

Legal Issues

• 1. Validity of reassessment proceedings initiated under section 147 of the Act.
• 2. Addition of unexplained cash credit in the bank account.
• 3. Levy of penalty under section 271B of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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