M/s. Appa Trading Company Vs. The Income Tax Officer, Ward-1(1), Salem

Parties Involved

Facts Summary

The assessee, M/s. Appa Trading Company, is a dealer in Kerosene oil with HPCL. During the demonetization period, the assessee deposited cash of Rs. 22,95,617/- in the Salem District Co-operative Bank Ltd., Salem. The assessee did not file any return of income. The Assessing Officer (A.O) reopened the assessment and made an addition of cash deposits of Rs. 22,95,617/- during the demonetization period and also made an addition @8% of credit in the bank, treating them as business receipts. The Commissioner of Income Tax (Appeals) (CIT(A)) confirmed both the additions. The assessee argued that the cash deposit was a business receipt and only Rs. 8,90,000/- of the cash deposit was in the form of SBN notes during the demonetization period. The assessee also argued that the profit margin adopted by the A.O was excessive.…

Legal Issues

• 1. Confirmation of addition of cash deposit during demonetization period
• 2. Estimation of net profit @ 8%

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Javed Munir Khan Vs. ITO 26(1)(4)

  Mumbai Bench benchAY 2017-18Dismissed

• Purnima Priyadarshi Vs. ITO, Ward-2(3), Biharsharif

  Patna Bench at Kolkata benchAY 2017-18Allowed

• Suman Lata Lamba Vs Income Tax Officer, Ward-4, Hisar, Haryana-125001

• Mangat Ram vs ITO

  Delhi bench

• Dhaval Dinesh Shah vs Income Tax Officer Ward 42(1)(2), Mumbai

• PR & Co. vs. The Income Tax Officer, Ward-2(1), Erode