Nikunjkumar Narbheram Thakkar Vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Nikunjkumar Narbheram Thakkar, is engaged in the wholesale and retail trading business of Charcoal at Radhanpur. He filed his return of income for the year under consideration on 28.10.2017, declaring total income at Rs. 2,96,940/-. The case was selected under CASS as Limited Scrutiny to verify cash deposits during the year. Upon verification of the bank book, the Assessing Officer noticed a discrepancy of Rs. 1,54,57,359/- between the assessee's bank credit and sales/turnover. The Assessing Officer treated this amount as undisclosed turnover and computed income at 8%, resulting in an addition of Rs. 12,52,589/-. The assessee filed an appeal against this order, which was upheld by the Ld. CIT(A) in an ex-parte order. The assessee then appealed to the Tribunal.…

Legal Issues

• 1. Whether the Ld. AO erred in making addition of Rs 12,52,589/- determining income @ 8% of Rs. 1,56,57,359/- considering it as Undisclosed sales/receipt of Appellant.
• 2. Whether the Ld. CIT(A) erred in confirming addition of Rs 12,52,589/-.
• 3. Whether the lower authorities erred in considering Rs. 1,56,57,359/- as Undisclosed sales/receipt of Appellant.
• 4. Whether the Ld. Assessing Officer erred in charging interest u/s 234A/234B/234C of the I.T. Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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