Janakbhai Babubhai Desai Vs. The ITO, Ward -1, Bardoli

Parties Involved

Facts Summary

The assessee filed his return of income for the Assessment Year (AY) 2017-18 on 09.02.2018, declaring a total income of Rs.12,46,991/-. The assessee's case was selected for complete scrutiny. During the assessment proceedings, the Assessing Officer (AO) issued various notices, to which the assessee did not comply. The AO completed the assessment under section 144 of the Income-tax Act, 1961, on 14.12.2019, making four additions: (i) Rs.45,42,593/- under section 68 for unexplained credits, (ii) Rs.15,25,651/- for unexplained cash deposits, (iii) Rs.1,13,392/- for disallowance of expenditure, and (iv) Rs.64,49,950/- for undisclosed income. The AO finalized the total income at Rs.1,38,78,580/-. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), who sustained certain additions and deleted others. Both the revenue and the assessee filed appeals before the Income-Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the CIT(A) erred in restricting the addition of Rs. 45,42,593/- to Rs. 16,18,593/- made on account of unexplained credits under section 68 of the Act.
• 2. Whether the CIT(A) erred in restricting the addition of Rs. 15,25,651/- to Rs. 2,78,660/- made on account of unexplained cash deposits under section 68 of the Act.
• 3. Whether the CIT(A) erred in deleting the additions made by the Assessing Officer without having any documentary evidences or additional evidences submitted by the assessee during the appellate proceedings.
• 4. Whether the CIT(A) erred in deleting the addition of Rs. 64,49,950/- made by the Assessing Officer on account of undisclosed income.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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