Digendrakumar Mohanbhai Patel vs The ITO

Parties Involved

Facts Summary

Digendrakumar Mohanbhai Patel, an authorized dealer of Indian Oil Corporation Limited, filed his return of income for AY 2017-18, declaring total income of Rs. 9.62 lakhs and agricultural income of Rs. 9,230. His case was selected for scrutiny. The Assessing Officer noted a variance in the figure of sales of cash book and the sales data furnished by the assessee and issued a show cause notice. The Assessing Officer added Rs. 14,41,189 as unexplained cash credit under section 68 of the I.T. Act, 1961 and taxed the addition at 60% under section 115BBE of the Act. The assessee appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 11.12.2023. The assessee raised four grounds of appeal, including the addition made by the Income-tax (Appeals) and the taxing of the addition at 60%.…

Legal Issues

• 1. On the facts and circumstances of the case as well as on the subject, the learned CIT(A), NFAC has erred in confirming the action of assessing officer in making addition of Rs.14,41,189/- by treating cash deposit as unexplained cash credit u/s 68 of the I.T. Act, 1961.
• 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals), NFAC has erred in confirming the action of assessing officer in invoking provisions of section 115BBE of the Act and in thereby taxing the addition at 60% & levying surcharge at 25% which is not applicable on above amount.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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