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M/s. Sumukha Holdings Vs. The Assistant Commissioner of Income Tax

Case No: ITA No. 797/Bang/2024
Court: INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE
Date: 1/6/2025

Parties Involved

appellantM/s. Sumukha Holdings
respondentThe Assistant Commissioner of Income Tax

Facts Summary

The assessee, M/s. Sumukha Holdings, filed a return of income claiming a loss of Rs. 9,40,050/-. The case was selected for scrutiny, and the Assessing Officer (AO) found that the assessee had purportedly invested Rs. 4,42,71,506/- in a property. The AO issued a show cause notice, and the assessee replied, explaining that the property was government land and the sale deed was void ab initio. The assessee argued that no actual payment was made, and the cheques issued were not encashed. The AO, how

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the addition of Rs. 4,42,71,506/- as unexplained investment under section 69 of the Act is justified.
  • 2. Whether the provisions of section 69 of the Act are applicable in the instant case.

1 more legal issue analysed in this judgement.

Precedents Relied Upon

3 precedents cited in this judgement.

Judgment Outcome

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