M/s. Swastik Constructions v/s Income Tax Officer, Ward-4(4), Thane

Parties Involved

Facts Summary

The assessee, M/s. Swastik Constructions, a partnership firm deriving income from construction activities, filed its return of income for the year 2010-11 declaring a total income of ₹ 31,516. During a search action under section 132 of the Income Tax Act, 1961, incriminating material was found and seized indicating that the assessee had paid ₹ 21,65,000 to M/s Vrushi Enterprises in cash. The assessee claimed these transactions were related to a loan repayment. However, the Assessing Officer added this amount to the assessee's income under section 69A of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals) who upheld the addition. The assessee further appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Re-opening of assessment under section 147
• 2. Addition on account of unexplained money under section 69A

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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