Sh. Ashok Kumar Verma Vs. ACIT

Parties Involved

Facts Summary

The assessee, Sh. Ashok Kumar Verma, filed an appeal against the order of the Assessing Officer (AO) and Commissioner of Income Tax (Appeals) (CIT(A)) for the assessment year 2017-18. The assessee, engaged in the business of civil construction, deposited cash amounting to Rs. 31,22,500/- in State Bank of India and Rs. 8,90,500/- in ICICI Bank during the demonetization period. The AO treated the deposit as unexplained money under section 69A of the Income Tax Act, 1961. The assessee argued that the deposit was from contractual work and already reflected in the audited books of accounts. The CIT(A) dismissed the appeal, leading to the current appeal before the tribunal.…

Legal Issues

• 1. Whether the addition of Rs. 31,22,500/- as unexplained cash deposits is justified?
• 2. Whether the disallowance of interest on interest-free loan is justified?
• 3. Whether the order of the CIT(A) is sustainable?
• 4. Whether the assessee's contentions are valid?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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