ITA NO. 2771/Del/2024

Parties Involved

Facts Summary

The Assessee has filed the instant Appeal against the Order of the Ld. CIT(Appeal)/NFAC, Delhi dated 15.09.2023, relating to assessment year 2017-18 on the following grounds:- 1. That the assessment order passed u/s. 144 of the Income Tax Act, 1961 is illegal and unjustified and, therefore, ought to be quashed. 2. That the addition of Rs. 13,14,000/- made in the assessment order passed under section 144 of the Income Tax Act, 1961 is illegal and unjustified and, therefore, ought to be deleted. 3. That on the facts and circumstances of the case and in law, the addition of Rs. 13,14,000/- u/s. 69A of the Income Tax Act, 1961 as unexplained money on account of cash deposit in bank is illegal and unjustified and, therefore, ought to be deleted. 4. That on the facts and circumstances of the case and in law, the addition of Rs. 13,14,000/- u/s. 69A of the Income Tax Act, 1961 as unexplained money on account of cash deposit in bank is illegal and unjustified because the cash was deposited in bank is out of prior cash withdrawal from bank during the same year and had to be deposited due to demonetization of currency made by Government, therefore, the addition ought to be deleted. 5. That the penalty proceedings initiated u/s. 271AAC(1) of the Income Tax Act, 1961 is illegal and unjustified and, therefore, ought to be quashed. Brief facts of the case are that Assessee filed e-return of income on 1.11.2017 for the AY 2017-18 declaring total income of Rs. 3,15,480/- after claiming deduc…

Legal Issues

• 1. Illegality of the assessment order passed u/s. 144 of the Income Tax Act, 1961
• 2. Illegality of the addition of Rs. 13,14,000/- made in the assessment order passed under section 144 of the Income Tax Act, 1961
• 3. Illegality of the addition of Rs. 13,14,000/- u/s. 69A of the Income Tax Act, 1961 as unexplained money on account of cash deposit in bank
• 4. Illegality of the addition of Rs. 13,14,000/- u/s. 69A of the Income Tax Act, 1961 as unexplained money on account of cash deposit in bank due to demonetization
• 5. Illegality of the penalty proceedings initiated u/s. 271AAC(1) of the Income Tax Act, 1961

Judgment Outcome

Decided in favour of Assessee.

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