Hubtown Limited vs Assistant Commissioner of Income Tax Central Circle 2(4)

Parties Involved

Facts Summary

The assessee, Hubtown Limited, filed a return declaring a total income of Rs.10,42,73,090/-. Following a search action on 30.07.2019, the case was centralized, and the assessment was completed. The Assessing Officer (AO) made an addition of Rs.64,75,370/- as unexplained money under section 69A of the Income-tax Act, 1961. This addition was based on WhatsApp messages, statements from an employee, and statements from third parties. Specifically, Rs.59,75,370/- was added based on WhatsApp messages from the Sales Manager’s mobile phone, and Rs.5,00,000/- was added based on cash seized from the broker, Shri Bhavesh Sanghvi. The assessee filed an appeal against this order, which was upheld by the Commissioner of Income-tax (Appeals). The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the addition of Rs.64,75,370/- as unexplained money under section 69A of the Act is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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