M/s. Starburst Motors Pvt. Ltd. Vs. D.C.I.T., Circle-14(2), Kolkata

Parties Involved

Facts Summary

The assessee, M/s. Starburst Motors Pvt. Ltd., filed its return of income showing a total income of ₹46,83,010/-. The company is a dealer of Maruti Suzuki and earns revenue from operations and sale of motor cars, lubricants, and service charges. During the demonetisation period up to 30.12.2016, a sum of ₹1,05,52,000/- was deposited in the bank account. The Assessing Officer added this sum to the total income under section 68 of the Income Tax Act, 1961, as the explanation provided by the assessee was not accepted. The assessee then filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, who dismissed the appeal due to the assessee's failure to explain the nature and source of the cash deposits and lack of written submissions. Aggrieved by this order, the assessee filed an appeal before the Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A) was wrong in confirming the addition made by the Ld. AO without providing adequate opportunity of being heard.
• 2. Whether section 68 of the Income Tax Act, 1961, is applicable in the present case.
• 3. Whether the addition of ₹1,05,52,000/- as income leads to double taxation.
• 4. Whether the Ld. CIT(A) was wrong in confirming the addition without proper enquiry and without finding any infirmity in the documentary evidences.

Judgment Outcome

Decided in favour of Assessee.

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