Chetak Enterprises Ltd. vs. ACIT

Parties Involved

Facts Summary

Chetak Enterprises Ltd. is appealing against an order by the Commissioner of Income Tax (Appeals) for the Assessment Year 2021-22. The Assessing Officer added Rs.2,77,79,000/- as unexplained money under Section 69A of the Income Tax Act, 1961, based on a loose sheet found during a search and seizure operation of another company, Brij Gopal Construction Company Pvt. Limited. The loose sheet indicated a cash payment by Brij Gopal Construction Company Pvt. Limited to Chetak Enterprises Ltd. However, Chetak Enterprises Ltd. denied receiving any cash and provided documentation to support their claim. The Tribunal found that the loose sheet was a dumb document and could not be used as a basis for making the addition.…

Legal Issues

• 1. Whether the addition of Rs.2,77,79,000/- as unexplained money under Section 69A of the Income Tax Act, 1961, is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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