ITA No. 277/CTK/2024

Parties Involved

Facts Summary

The assessee, Malay Kumar Patra, is an individual who is doing business in dealing with biscuits and Nestle food products. During the period of demonetization between 8.11.2016 to 11.11.2016, the assessee deposited SBN currency to an extent of Rs.4,65,000/-. The Assessing Officer treated the deposits made on 8.11.2016 to an extent of Rs.1,32,673/- as out of cash availability and treated the balance of Rs.3,32,327/-, which was deposited on 11.11.2016 as the unexplained income of the assessee. The assessee argued that the balance monies were out of sales, which had already been made on credit and that the demonetization had taken place on 8.11.2016 and 9.11.2016 was holiday and the money had been deposited on 11.11.2016. The assessee further argued that no addition on account of the demonetization currency was liable to be made in the hands of the assessee.…

Legal Issues

• 1. Whether the deposits made by the assessee during the period of demonetization should be treated as unexplained income.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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