Javed Munir Khan Vs. ITO 26(1)(4)

Parties Involved

Facts Summary

The case involves Javed Munir Khan, who deposited aggregate cash amounting to ₹1,13,28,200 during the demonetization period and ₹92,64,140 during the post-demonetization period. The Assessing Officer treated the deposits as unexplained money under section 69A of the Income-tax Act, 1961 and made an addition of ₹9,26,414 (10% of post-demonetization deposits). On appeal, the Learned Commissioner of Income-tax (Appeals) granted partial relief, restricting the addition under section 69A to ₹52,52,400 and considering ₹60,75,800 for computing business income. The Learned CIT(A) also applied the presumptive provisions of section 44AD and computed business income at 8% of the aggregate cash deposits, determining the taxable business income at ₹12,27,195.…

Legal Issues

• 1. Whether the Learned CIT(A) erred in granting relief of Rs.60,75,800 of cash deposits against total cash deposits of Rs.1,13,28,200 during the period of demonetization.
• 2. Whether the Learned CIT(A) erred in making addition of Rs. 12,27,195 by treating the total cash deposits as the turnover of the appellant.
• 3. Whether the Learned CIT(A) erred in levying tax on the addition under section 115BBE of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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