Income Tax Officer Vs. Hema Arora

Parties Involved

Facts Summary

The assessee, Hema Arora, filed her return of income for the assessment year 2017-18 declaring a total income of Rs. 7,81,480. The case was selected for limited scrutiny due to abnormal cash deposits during the demonetization period. The Assessing Officer observed that the assessee made a cash deposit of Rs. 79.85 lakhs during demonetization and issued notices to various banks for details. The assessee submitted that she was a small-time trader dealing in clothes and had made cash deposits from Diwali sales and past savings. The Assessing Officer, however, found the assessee's submissions unconvincing and made an addition of Rs. 79,85,000 under section 69A of the Income Tax Act. Aggrieved by this order, the assessee appealed to the National Faceless Appeal Centre (NFAC), Delhi, which allowed the appeal, finding the assessee's explanations and submissions acceptable.…

Legal Issues

• 1. Whether the addition of Rs. 79,85,000 made by the Assessing Officer under section 69A is sustainable.
• 2. Whether section 69A of the Income Tax Act is applicable in the absence of books of accounts.
• 3. Whether the provisions of section 115BBE are applicable to the assessee's case.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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