M/S. Satyam Minerals Pvt. Ltd. vs. ITO, Ward 5(2), Jaipur

Parties Involved

Facts Summary

The assessee, M/S. Satyam Minerals Pvt. Ltd., is a private limited company engaged in the business of manufacturing and trading of mineral products. During the demonetization period, the assessee deposited cash in bank account in old currency notes amounting to Rs.55.40 lacs. The assessee submitted cash book, bank statements of Punjab National Bank and Standard Chartered Bank and other documents during the assessment proceedings in which cash balance was duly reflected in the cash book pre demonetization before cash deposit in bank account. However, the Assessing Officer (AO) made the impugned addition of Rs.55,40,000/- by treating the cash deposits as unexplained. The assessee appealed against the order of the lower authorities, arguing that the addition was arbitrary and not supported by any material on record.…

Legal Issues

• 1. Whether the lower authorities grossly erred in sustaining an addition of Rs.55.40 lacs u/s 68 of the Act by treating the cash deposits in bank account during demonetization period as unexplained.
• 2. Whether the lower authorities grossly erred in not giving sufficient opportunity of being heard to the appellant.

Judgment Outcome

Decided in favour of Assessee.

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