DCIT Vs EKO India Financial Services Pvt. Ltd.

Parties Involved

Facts Summary

The assessee company, EKO India Financial Services Pvt. Ltd., provides banking services to underserved segments and is approved by the RBI under the Business Correspondent regime. The company operates a technology platform that enables banks to connect customers through intermediaries who collect cash from customers and deposit it into the assessee's settlement account. The assessee generates revenue through transaction fees charged to the intermediaries. During the demonetization period, a sum of Rs. 14,02,64,100/- was deposited in the assessee's bank account in old currency notes. The Assessing Officer (AO) made an addition of Rs. 9,73,66,450/- under section 68 of the Income Tax Act, 1961, which was later deleted by the Commissioner of Income Tax (Appeals). The Revenue has appealed against this deletion.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) was justified in deleting the addition of Rs. 9,73,66,450/- made by the Assessing Officer under section 68 of the Income Tax Act, 1961?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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