Sajid Abani Vs. ITO-2(1), Bilaspur

Parties Involved

Facts Summary

Sajid Abani, engaged in the business of providing crane service facilities, filed his return of income for the assessment years 2013-14, 2014-15, and 2016-17, declaring income of Rs.3,30,790/-, Rs.24,00,000/-, and Rs.24,00,000/- respectively. The Income Tax Officer (A.O) observed that there was a huge variation between the turnover declared in the return of income and cash deposits made in his bank account. The A.O initiated proceedings under Section 147 of the Income-tax Act, 1961, and issued a Show Cause Notice (SCN) to the assessee. The assessee filed an explanation as regards the source of the subject cash deposits and produced supporting documentary evidence. However, the A.O found that the amount of cash deposits of Rs.13,72,200/- remained unexplained by the assessee and made an addition of the same under Section 69A of the Act. The assessee carried the matter in appeal before the Commissioner of Income-Tax (Appeals) but without success. The assessee then carried the matter in appeal before the tribunal.…

Legal Issues

• 1. Whether the initiation of proceedings by the A.O was illegal and without jurisdiction?
• 2. Whether the assessment order passed u/s.143(3) r.w.s.147 and sec.144B of the Income-tax Act, 1961 without issuing notice u/s.143(2) of the Act is illegal and void ab initio?
• 3. Whether the learned Commissioner of Income-tax (Appeals) has erred in dismissing appellant's appeal assailing addition of Rs.13,72,200/- made u/s.68 of the Income-tax Act, 1961 treating it as made u/s.69A of the Act without considering facts of the case in their entirety?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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