Manjot Singh vs. ITO-Ward 2, Moga

Parties Involved

Facts Summary

The assessee, Manjot Singh, is engaged in the business of clothing resale and was assessed to tax for the Assessment Year 2017-18. The total income declared in the return was Rs. 17,19,190/-, but it was assessed at Rs. 49,19,190/- by making an addition of Rs. 32,00,000/- under section 68 of the Act, 1961 due to an unexplained cash deposit made during the demonetization period. The assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals), which was dismissed by the Commissioner of Income Tax (Appeals) in the absence of any response from the assessee. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in passing the ex-parte order and confirming the addition of Rs. 32 lacs in respect of cash sale made by the assessee.
• 2. Whether the Ld. CIT(A) failed to appreciate that the cash has been deposited out of the sales made by the assessee which have been recorded in the regular books of accounts.
• 3. Whether the Ld. CIT(A) erred in confirming the applicability of section 115BBE r.w.s 69 of the Income Tax Act on account of the cash deposited in the regular bank account of the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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