Manmohan Pravinchandra Madani vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Manmohan Pravinchandra Madani, is an individual engaged in the jewellery trading business under the name 'M/s. Om Gold & Silver Company'. The assessee filed his return of income for the Assessment Year 2017-18 on 18.09.2017, declaring a total income of ₹5,16,510/-. The Assessing Officer observed that the assessee had deposited substantial amounts of cash into various bank accounts during FY 2016-17. A show cause notice under section 144 of the Act was issued, but the assessee failed to provide a satisfactory explanation or supporting documentary evidence to substantiate the source of cash deposits. The Assessing Officer treated the excess cash deposits during the demonetization period as unaccounted income under section 69A of the Act and added them to the total income of the assessee.…

Legal Issues

• 1. The Ld. CIT(A), NFAC, Delhi has erred in confirming the addition of Rs.28,91,220/- made by the Assessing officer for the cash deposits in Axis Bank, Kalupur Commercial Co. Op. Bank Ltd. and Bank of Baroda as alleged unaccounted income from undisclosed sources and treating it as deemed income u/s. 69A of the I.T. Act,1961 which in fact is the part of business turnover of the appellant.
• 2. The Ld. CIT(A), NFAC, Delhi has erred in confirming the action of the Assessing Officer in taxing the addition made by him applying the provisions of Sec. 115BBE which are for admitted business transactions.
• 3. The Ld. CIT(A), NFAC, Delhi has erred in confirming disallowance of Rs.6,22,253/- made by the Assessing Officer u/s.40A(3) of the I. T. Act, 1961 in respect of payments made for purchase of goods and labour charges.
• 4. The Appellant craves leave to add, alter, amend or modify any of the grounds of appeal on or before the date of hearing of appeal.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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