Chintan Enterprises (P) Ltd. vs. The ITO

Parties Involved

Facts Summary

The assessee, Chintan Enterprises (P) Ltd., did not file its return of income for the assessment year (AY) 2012-13. The Assessing Officer (AO) noticed that the assessee had deposited cash of Rs.16,02,000/- in its bank account with Bank of Baroda. The case was reopened under section 147 of the Income-tax Act, 1961. The assessee filed a return of income declaring total income of Rs. Nil. The AO issued a show cause notice asking the assessee to explain the source of the cash deposit. The assessee submitted that the cash was from its closing cash on hand as on 31.03.2019, which was Rs.29,73,731/-. The AO did not accept this explanation as the assessee had not filed returns of income for AY.2010-11 and 2011-12. The assessee appealed to the Commissioner of Income-tax (Appeals) (CIT(A)), who confirmed the addition made by the AO. The assessee further appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the addition of Rs.20,30,498/- made by the AO is justified?
• 2. Whether the addition of creditworthiness of Rs.3,00,598/- in the bank account of assessee is justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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