Pipasa Enterprise Bandar C.S. Shop

Parties Involved

Facts Summary

The assessee, Pipasa Enterprise Bandar C.S. Shop, a firm, was selected for scrutiny assessment. During the scrutiny, the Assessing Officer found a cash deposit of Rs. 21,10,000/- in the bank account during the demonetization period. The assessee claimed that due to internal disturbances with other partners, the firm could not open a bank account using the firm’s PAN, and all transactions were made through a partner’s personal account. The Assessing Officer initiated proceedings under section 147 of the Act in the case of the assessee-firm and issued a notice under section 148. Despite various notices, the assessee-firm did not file a return of income. The Assessing Officer issued a notice under section 142(1) asking for details, to which the assessee responded partially. A show-cause notice was issued, but the Assessing Officer did not accept the submissions, making an addition of Rs. 21,10,000/- to the total income under section 69A read with section 115BB of the Income Tax Act.…

Legal Issues

• 1. Whether the cash deposit of Rs. 21,10,000/- should be added to the total income of the assessee-firm under section 69A read with section 115BB of the Income Tax Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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