ITO vs M/s Ranyal Traders Pvt. Ltd.

Parties Involved

Facts Summary

The assessee company, incorporated on 06.11.1991, is engaged in trade of import-export and supply of clothing, hosiery, readymade garments, fabrics, textiles, trading and allied activities under the trade name of 'Ranyal Impex International'. It filed its ITR u/s 139(1) for A.Y 2017-18 dt 05.07.2017 declaring a taxable income of Rs 20,40,800/-. The assessee, during the year under consideration, made total sales of Rs. 11,85,46,713/- which included Rs 10,28,58,072/-on credits and Rs 1,56,88,641/- in cash and out of such sales proceeds Rs 1,37,00,000/- was deposited into its regular bank. The AO held this cash deposit of Rs 1,37,00,000/- as unexplained cash credit during the demonetization period and added the same u/s 68 of the Act. On appeal the CIT(A) deleted the said addition.…

Legal Issues

• 1. Addition of unexplained cash deposits of Rs 1,37,00,000/- during demonetization period.
• 2. Applicability of section 115BBE on cash deposits treated as unexplained.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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