Income Tax Officer, Civic Centre, New Delhi Vs. Sh. Naveen Arora

Parties Involved

Facts Summary

The assessee, Sh. Naveen Arora, is engaged in the business of console agents for international freight forwarding under the proprietorship concern Pawansoot Freight Solutions. For the Assessment Year 2017-18, an ex-parte assessment order was passed by the Assessing Officer on 17.12.2018, making two additions: one under section 69A for unexplained money deposits of Rs.26,52,500/- during demonetization, and another under section 69C for disallowance of Rs.2,79,47,174/- as unexplained expenditure due to failure to deduct tax at source on remittances made to foreign nationals/entities. The assessee appealed against these additions, arguing that the remittances were on behalf of clients and that the income of the foreign transporters was covered under section 172 of the Act, thus not requiring tax deduction at source under section 195.…

Legal Issues

• 1. Whether the CIT(A) erred in reversing the Assessing Officer’s action treating the assessee’s expenditure of Rs.2,79,47,174/- as unexplained under section 69C of the Act.
• 2. Whether the addition of Rs.26,52,500/- under section 68/69A for unexplained cash deposits during demonetization was justified.
• 3. Whether the assessee should be assessed under section 115BBE.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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