Sanjay Audhesh Mishra vs ITO, Ward-3, Amravati

Parties Involved

Facts Summary

The assessee, Sanjay Audhesh Mishra, did not file a return of income for the Assessment Year 2017-18. Based on information about a cash deposit of Rs. 77,70,705/- in the savings bank account and salary income received during the year under consideration to the tune of Rs. 36,890/-, the case was reopened for carrying out re-assessment proceedings. The Assessing Officer observed that there were transactions between the assessee and Mr. Rajesh Shankarlal Rathi, and a transaction of payment received from Mr. R.R. Mundhada at Rs. 9,58,720/- on 20.04.2016. The assessee was asked to explain this transaction, which he did by stating that Mr. R.R. Mundhada is registered under Value Added Tax (VAT) and was required to make a payment of Rs. 9,57,620/- on 20.04.2016 towards outstanding VAT. Due to a paucity of funds, Mr. R.R. Mundhada asked the assessee to pay the challan of Rs. 9,58,720/- (VAT Rs. 9,57,620 + charges Rs. 1,100) which was subsequently repaid to him. The assessee requested Mr. Rajesh Shankarlal Rathi to pay the challan as he did not have sufficient cash in hand. Mr. Rajesh Shankarlal Rathi charged Rs. 1,100/- for e-payment of the challan. Finally, Mr. Rajesh Shankarlal Rathi paid the challan to the government account of Rs. 9,57,620/- and after adding the facilitation charges of Rs. 1,100/-, the assessee paid the same to Mr. Rajesh Shankarlal Rathi. Subsequently, Mr. R.R. Mundhada also repaid the assessee along with VAT payment and cleared the account during the year itsel…

Legal Issues

• 1. Whether the addition of Rs. 9,58,720/- made u/sec. 69A of the Act for unexplained money is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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