Kameswara Rao Potluri vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Kameswara Rao Potluri, made cash deposits of Rs. 11,19,000/- in his bank account during the demonetization period. The Income Tax Officer issued a notice under section 142(1) of the Income Tax Act, 1961, seeking an explanation for the cash deposits and the non-filing of the income return for the Assessment Year 2017-18. The assessee explained that the deposits were from fish sales, but the Officer found that the assessee's business was not allowed to accept cash in old demonetized currency notes. Consequently, the Officer added Rs. 11,19,000/- as unexplained income under section 69A of the Act and taxed it under section 115BBE. The assessee appealed to the Commissioner of Income Tax (Appeals), who dismissed the appeal ex-parte. The assessee further appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the order of the Commissioner of Income Tax (Appeals) is erroneous in law.
• 2. Whether the Commissioner of Income Tax (Appeals) erred in not considering the submissions of the appellant.
• 3. Whether the Commissioner of Income Tax (Appeals) erroneously upheld the addition made by the Assessing Officer.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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