ITO vs. Prakash Agarwal

Parties Involved

Facts Summary

The assessee, Prakash Agarwal, is engaged in trading of FMCG Goods as a retailer and wholesaler. For the assessment year 2017-18, Agarwal filed his return of income on 26.09.2017 with a declared income of Rs. 5,50,970/-. The Assessing Officer (AO) completed the assessment on 26.12.2019, assessing the total income at Rs. 7,33,52,530/-. The AO made an addition of Rs. 79,81,000/- as unexplained cash deposits under section 68 of the Income Tax Act and a disallowance of expenditure under section 40A(3) amounting to Rs. 6,48,20,559/-. Agarwal appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who deleted both the additions. The revenue is dissatisfied with the CIT(A)'s order and has filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Deletion of addition of Rs. 79,81,000/- as unexplained cash deposits under section 68 of the Income Tax Act.
• 2. Deletion of addition of Rs. 6,48,20,559/- as disallowance of cash payments under section 40A(3) of the Income Tax Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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