Moral Alloys Pvt. Ltd. Vs Income Tax Officer, Ward-17(3), New Delhi

Parties Involved

Facts Summary

The case involves Moral Alloys Pvt. Ltd., a company engaged in Metal Trading business, which is aggrieved against the findings of the lower authorities treating its cash deposits and credit entries in M/s Axis Bank amounting to Rs.1,82,90,000/- and Rs.8,86,03,551/- respectively as unexplained money under sections 69A and 115BBE of the Income Tax Act, 1961. The Revenue argues that it was the assessee’s duty to plead and prove the source of the cash credits and deposits. The assessee contends that the cash credits and deposits are regular business sales and should not have been treated as unexplained. The lower authorities had previously treated the assessee as an accommodation entry provider in the assessment year 2012-13.…

Legal Issues

• 1. Whether the cash deposits and credit entries should be treated as unexplained money under sections 69A and 115BBE of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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