Harjeet Kaur (AY: 2017-18)

Parties Involved

Facts Summary

The assessee, Harjeet Kaur, is carrying on business under the name and style of M/s SAHS Foods, earning income from a poultry farming business. The return of income was filed declaring income of Rs.84,64,380/- on 31.03.2018. The case was selected for scrutiny assessment, but the assessment was completed under section 144 of the Income Tax Act, 1961 by the Assessing Officer (AO) by making an addition of Rs.11,45,56,909/-. This addition included Rs.1,49,37,390/- on account of alleged cash deposits in Canara Bank A/c No. 4803214000021 and Rs.7,27,14,262/- on account of alleged cash deposits in Canara Bank A/c No. 4803214000023. Further, a net profit assessment addition of Rs.1,84,40,877/- was made. The assessee challenged this before the First Appellate Authority (FAA), which set aside the assessment order for fresh assessment. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in setting aside the case under section 68 of the Act.
• 2. Whether the Ld. CIT(A) erred in disregarding the remand report.
• 3. Whether the Ld. CIT(A) and Ld. AO failed to provide a reasonable opportunity to the appellant.
• 4. Whether the Ld. CIT(A) erred in disregarding the remand report of the Ld. AO.
• 5. Whether the addition of Rs. 1,49,37,390/- on account of alleged unexplained cash deposits was justified.
• 6. Whether the addition of Rs. 7,27,14,262/- on account of alleged unexplained cash deposits was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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