Income Tax Officer, Room No.238B, 2nd Floor, C.R. Building, I.P. Estate, Delhi-110002 Vs. Sukam Jewellers Pvt Ltd.

Parties Involved

Facts Summary

The appellant company filed its return of income for the assessment year under reference declaring total income of Rs.15,13,486/-. Subsequently, the case was selected for scrutiny under CASS and statutory notice under section 143(2) of the Income Tax Act, 1961 was issued on 21.09.2018 and duly served upon the assessee through ITBA portal as well as through speed post. Immediately after the announcement of scheme of demonetization on 08.11.2016 at 08:00 PM by the Prime Minister of India, the appellant company had deposited cash amounting to Rs.2,31,00,000/- into its bank account number 35748542648 maintained with State Bank of India. During the assessment proceedings, the Assessing Officer asked the appellant to explain source of cash deposited by the assessee company into its bank account during the period of demonetization along with certain other queries related to the issue of cash deposited by the assessee company in its bank account. In response, the appellant has explained that the source of cash deposited was cash in hand on 09.11.2016. It is the stand of the assessee company that cash, amounting to Rs.2,31,00,000/-, deposited by it into bank account maintained with State Bank of India represents its sale proceeds. It is also explained with the help of cash book for the period 08.11.2016 to 29.12.2016 that the assessee company had made a total cash sales of Rs.2,30,94,761/- on 08.11.2016 itself. The AO did not accept the explanation provided by the appellant holding th…

Legal Issues

• 1. Deletion of addition of Rs. 2,31,00,000/- made u/s 68 of the IT Act.

Judgment Outcome

Decided in favour of Assessee.

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