Ashoka Enterprises vs. Asst. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Ashoka Enterprises, a firm engaged in the business as a distributor in consumer products, filed its return of income for the Assessment Year 2017-18 admitting a total income of Rs. 18,45,310/-. The case was selected for complete scrutiny, and notices were issued to the assessee under sections 143(2), 142(1), and 142(1) r.w.s 129 of the Income Tax Act, 1961. During the scrutiny proceedings, the Assessing Officer observed certain cash deposits in the assessee's bank accounts and issued a show cause notice. The assessee did not respond, leading the Assessing Officer to treat the cash deposits of Rs. 7,99,698/- as unexplained money under section 69A r.w.s 115BBE of the Act and added the same to the total income. The Assessing Officer also initiated penalty proceedings under section 270A of the Act for underreporting of income. The assessee appealed against this order to the Commissioner of Income Tax (Appeals), who dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the cash deposits made by the assessee during the demonetization period are satisfactorily explained.
• 2. Whether the addition made by the Assessing Officer under section 69A of the Act is correct.

Judgment Outcome

Decided in favour of Assessee.

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