Manik Asri vs ITO Ward-49(1) Delhi

Parties Involved

Facts Summary

The assessee, Manik Asri, filed his return of income declaring a total income of INR 6,90,980/-. The case was selected for complete scrutiny, and a notice under section 143(2) was issued. The Assessing Officer (AO) found that the assessee had deposited INR 55,00,000/- in old currency notes during the demonetization period. After detailed scrutiny of the assessee's submissions, the AO passed an order under section 143(3) assessing the total income at INR 74,72,980/-. The assessee appealed this order before the Commissioner of Income Tax (Appeals) (CIT(A)), who partly allowed the appeal. Aggrieved by the CIT(A)'s order, the assessee appealed to the Tribunal.…

Legal Issues

• 1. Whether the addition of INR 55,00,000/- under Section 68 of the Income Tax Act is valid.
• 2. Whether the CIT(A) erred in confirming the addition without considering the assessee's documentary evidence.
• 3. Whether the cash deposits were properly recorded in the books of account.
• 4. Whether the impugned addition resulted in double taxation.
• 5. Whether the CIT(A) ignored settled law regarding high cash sales during demonetization.
• 6. Whether the addition under Section 68 is valid given similar profit margins in preceding years.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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