Global Educom Pvt. Ltd. vs. Income Tax Officer

Parties Involved

Facts Summary

For the assessment year 2017-18, Global Educom Pvt. Ltd. made cash deposits of ₹39,33,000/- during the demonetization period in its bank account. The assessee claimed these deposits were sourced from regular business sales and withdrawals from bank accounts, and were duly recorded in its books of accounts. However, the Assessing Officer noted significant discrepancies, including a disproportionate increase in cash deposits and cash on hand, absence of credit sales, non-maintenance of day-to-day stock records, and significant fluctuation in gross profit ratios. The Assessing Officer rejected the books of accounts under section 145(3) of the Act and treated the cash deposits as unexplained income under section 68 of the Act. The Commissioner of Income Tax (Appeals) dismissed the assessee's appeal due to non-compliance and failure to respond to notices.…

Legal Issues

• 1. Dismissal of appeal ex-parte in violation of natural justice
• 2. Passing of a non-speaking order in violation of section 250(6) of the Act
• 3. Confirmation of addition under section 68 of the Act
• 4. Rejection of books of accounts under section 145(3) of the Act
• 5. Failure to appreciate facts and documentary evidences
• 6. Confirmation of levy of interest under sections 234A/B/C/D of the Act

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Satya Pal Shiv Kumar Vs ACIT, Circle-47(1), New Delhi

  Delhi Bench benchAY 2017-18Allowed

• Narmada Commodities Trading Pvt. Ltd. vs. ITO, Ward-6(3)

  Kolkata Bench benchAY 2010-11 & 2011-12Partly Allowed

• Anil Bansal vs ITO

  Delhi Bench ‘F’, New Delhi benchAY 2017-18Partly Allowed

• Aditi Enterprises vs ITO

  Delhi Bench benchAY 2017-18Allowed

• Islander Housing Project Pvt. Ltd. vs. ITO, Ward-3(4), Port Blair

  Kolkata Bench benchAY 2020-21Allowed

• Ideacraft Eventures Private Limited vs. ITO, Gurgaon

  Delhi Bench benchAY 2017-18Partly Allowed