Manik Asri vs. ITO, Ward 49 (1)

Parties Involved

Facts Summary

The assessee, Manik Asri, proprietor of A.V. Enterprise, is engaged in the wholesale trading and supply of PU coated fabric. During the assessment year 2017-18, the assessee deposited Rs. 55 lakhs in cash into the current account with Kotak Bank. The Assessing Officer (AO) made an addition of Rs. 55 lakhs under Section 68 of the Income Tax Act, 1961, without considering the detailed submissions and documentary evidence provided by the assessee. The assessee submitted various registers, purchase and sales details, cash-in-hand details, and VAT returns to substantiate the source of cash deposits. The AO did not appreciate these submissions and made the addition based on insufficient consideration of the evidence.…

Legal Issues

• 1. Whether the addition of Rs. 55 lakhs under Section 68 is valid.
• 2. Whether the cash deposits were duly recorded and supported by documentary evidence.
• 3. Whether the cash sales resulted in double taxation.
• 4. Whether the addition was made in violation of the principles of natural justice.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• M/s. JMK Jewels Pvt. Ltd. vs. ACIT

• ITO, Ward-43(1), New Delhi vs. Vinod Kumar Kansal

  Delhi Bench benchAY 2017-18Dismissed

• Shokat Ali Vs. Assessing Officer, Ward-60(7)

  Delhi Bench benchAY 2017-18Partly Allowed

• Mrs. Zia Rathi vs. Income Tax Officer

  Delhi Bench ‘E’ benchAY 2017-18Allowed

• Gargi Manchanda vs. Income Tax Officer

  Delhi Bench benchAY 2012-13Allowed

• Income Tax Officer Vs. Hema Arora