Bhumika Transport JV BNRA v/s. ACIT, Circle 19(1)

Parties Involved

Facts Summary

The assessee, Bhumika Transport JV BNRA, a joint venture formed in 2011 for municipal solid waste management, did not file its income return for the Assessment Year 2017-18 due to disputes among its members. The assessee had made significant cash transactions during the demonetization period, leading to a notice under section 141(1) of the Income-tax Act, 1961. The assessment was finalized with additions of Rs. 22,90,000/- in cash deposits and Rs. 3,60,158/- at 8% of credit entries of Rs. 45,01,980/-. The assessee argued that the credit entries represented amounts recovered from debtors on the sale of plant & machinery. The Commissioner of Income-tax (Appeals) deleted the cash deposit additions but estimated income at 8% of the total cash and credit entries. The assessee appealed against this estimation.…

Legal Issues

• 1. Estimation of income @8% of Rs. 67,91,980/-

Judgment Outcome

Decided in favour of Assessee.

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