Income Tax Appellate Tribunal, Rajkot Bench

Parties Involved

Facts Summary

The assessee, Jyoti CNC Automation Limited, filed its return of income for assessment years 2019-20, 2020-21, and 2022-23. The assessing officer issued a show cause notice to the assessee for unexplained cash credits and expenditure. The assessee submitted that all transactions were carried out through banking channels and there was no payment of cash. The assessing officer rejected the assessee's reply and made additions to the assessee's income. The assessee appealed to the Commissioner of Income-tax (Appeals), who deleted the additions. The revenue appealed to the Income Tax Appellate Tribunal. The Tribunal dismissed the revenue's appeal and upheld the Commissioner's order.…

Legal Issues

• 1. The Ld. CIT(A) erred in deleting the addition of Rs. 76,57,520/- u/s 68 of the Act on account of unexplained cash credits, and the consequential addition of Rs. 1,76,889/- u/s 69C of the Act on account of unexplained expenditure.
• 2. The Ld. CIT(A) erred in allowing the deduction of Rs. 4,22,30,996/- u/s 35(2AB) of the Act without appreciating that the quantification of eligible expenditure must be certified by the Prescribed Authority in Form 3CL.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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