ITA No.1499/Chny/2024 (AY 2017-18) Jayalakshmi Fireworks

Parties Involved

Facts Summary

The case involves an appeal by Jayalakshmi Fireworks against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2017-18. The assessee challenged the addition of Rs.28,12,500/- as unexplained cash credit under section 68 of the Income Tax Act, the addition of Rs.2,44,877/- received as deposits from relatives, the disallowance of Provident Fund (PF) and Employee State Insurance (ESI) remitted, and the tax rate applied to these additions. The assessee argued that the assessment was framed without giving proper opportunity and that the due date for ESI remittance was incorrectly applied by the Assessing Officer. The Tribunal set aside the order and restored the issues back to the file of the Assessing Officer for fresh assessment.…

Legal Issues

• 1. The order of the CIT(A) is erroneous as the same is opposed to law and facts and thus liable to be set aside.
• 2. The CIT(A) erred in upholding the addition of Rs.28,12,500/- as unexplained cash credit u/s. 68 of the Act.
• 3. The CIT(A) erred in failing to note that the addition of cash deposits of Rs.28,12,500/- made by the AO is illegal, incorrect and the same is liable to be deleted in full.
• 4. The CIT(A) failed to notice that fresh deposits of Rs.2,44,877/- were received from relatives. The CIT(A) erred in upholding the addition of Rs.2,44,877/- made by the AO and the same is liable to be deleted in toto.
• 5. The CIT(A) erred in upholding the disallowance of PF and ESI remitted invoking the provisions of Sec. 36(1)(va) of the Act.
• 6. The AO erred in taxing the additions of Rs.28,12,500/- and Rs.2,44,877/- at 60% u/s. 155BBE of the Act.

Judgment Outcome

Decided in favour of Assessee.

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