Kiran Kumar Singh vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee filed his return of income for the Assessment Year 2017-18, disclosing a total income of Rs. 7,99,870/-. The case was selected for complete scrutiny under CASS to verify the cash deposit made during the demonetization period, as the assessee deposited Rs. 82,25,500/- in his bank account. The Assessing Officer (AO) gave several opportunities to the assessee to explain the nature and source of such deposits, but the assessee did not provide a satisfactory explanation. Consequently, the assessment was carried out under Section 144 of the Act, and an order was passed on 29.01.2019, adding Rs. 82,25,500/- as unexplained money under Section 69A of the Act. Dissatisfied with this order, the assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who dismissed the appeal by sustaining the AO's order. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the demonetisation of currency was applicable for the business receipts of petrol pumps and dealers of petroleum products.
• 2. Whether the amount of Rs. 82,25,500/- deposited in the bank account was out of the sale proceeds of petroleum products.
• 3. Whether the assessment was bad both on facts and in law and not maintainable.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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