Hindustan Trust Pvt. Ltd. vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Hindustan Trust Pvt. Ltd., is a private limited company engaged in the wholesale trading of drugs and medicines. The return of income for the assessment year 2017-18 was filed on 02.10.2017 declaring a total income of Rs. 26,10,940/-. The assessment was taken up for scrutiny under section 143(2) of the Income Tax Act, 1961, and was completed on 30.12.2019 with a total income of Rs. 56,10,940/- by making additions of Rs. 30,00,000/- on account of cash deposits in the bank during the demonetization period. In the first appeal, the Commissioner of Income Tax (Appeal) partly allowed the appeal, upholding an addition of Rs. 24.00 lacs out of the total addition of Rs. 30.00 lacs. Aggrieved by this order, the assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the addition of Rs. 24 lacs out of the total addition of Rs. 30 lacs made by the assessing officer under section 68 of the Act on account of allegedly unexplained cash credited in the books of the appellant is justified.
• 2. Whether the application of provisions of section 115BBE and the consequent tax at the rate of 60 percent, surcharge at the rate of 25% of the tax, and interest under section 234B is correct.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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