Hansraj Vs Income Tax Officer

Parties Involved

Facts Summary

In this case, the assessee, Hansraj, had not filed his return of income for the assessment year 2014-15. The Department found that the assessee had deposited a large sum of cash in his bank account during the financial year 2013-14. The Assessing Officer (AO) had reasons to believe that income to the extent of Rs. 1,08,57,906/- had escaped assessment and re-opened the case for assessment. The assessee claimed that the cash deposits were from his milk trading business, but failed to provide supporting evidences or confirmations. Consequently, the AO treated the cash deposits as unexplained money and added it to the assessee's total income.…

Legal Issues

• 1. Initiating proceedings u/s 147/148 of the Act without valid reason leading to belief of escapement of income.
• 2. Rejecting audited books of account without verifying them.
• 3. Confirming addition of Rs. 38,93,580/- on ad hoc basis being 20% of the gross turnover of Rs. 1,94,67,899/-.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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