Dhirajlal Bhagwanbhai Talaviya vs The ITO

Parties Involved

Facts Summary

Dhirajlal Bhagwanbhai Talaviya, an individual, filed his return of income for AY 2017-18, declaring a total income of Rs.5,40,630/-. The case was selected for scrutiny due to a cash deposit made during the demonetization period. The Assessing Officer issued a show cause notice to substantiate the source of the cash deposit of Rs.10,50,000/-. The assessee submitted that the cash deposit was from past savings and income earned during the year under consideration. The Assessing Officer treated the entire cash deposit as unexplained money and taxed it under section 115BBE of the Income Tax Act. The assessee filed an appeal before the Commissioner of Income Tax (Appeals), which was confirmed by the Commissioner. The assessee then filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the addition of Rs.10,50,000/- as unexplained money u/s 69A of the I.T. Act, 1961 was justified?
• 2. Whether the taxing of the addition at 60 percentage and levying surcharge at 25 percentage under section 115BBE of the Act was justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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