Income Tax Officer, C.R. Building, I.P. Estate, New Delhi-110002 Vs Mishka Exim limited, Flat No.-102, Plot no-10, First Floor, Chetan Complex, Central Market, Surajmal Vihar, Delhi 110092, PAN-AAJCM3435F

Parties Involved

Facts Summary

The assessee company engaged in the business of trading of fabrics, ornaments, and equity shares had deposited a large amount of cash in its bank account during the demonetization period. The assessing officer noted an increase in cash sales during the demonetization period and rejected the assessee’s explanation for the rise, observing no history of such unprecedented cash sales in earlier years. The assessing officer concluded that the cash sales invoices were self-generated, self-serving invoices with various discrepancies and made an addition of Rs.1,45,00,000/- under section 68 r.w.s. 115BBE of the Income Tax Act, 1961.…

Legal Issues

• 1. Deletion of addition amounting to Rs. 1,45,00,000/- made u/s 68 r.w.s 115BBE of the Act
• 2. Deletion of addition amounting to Rs. 1,45,00,000/- made u/s 68 r.w.s 11SBBE of the Act
• 3. Deletion of addition amounting to Rs. 1,45,00,000/- made u/s 68 r.w.s 115BBE of the Act on the basis of cash receipts representing sales
• 4. Deletion of addition amounting to Rs. 1,45,00,000/- made u/s 68 r.w.s 111BBE of the Act on the basis of sufficient stock to effect sales

Judgment Outcome

Decided in favour of Assessee.

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