Shokat Ali Vs. Assessing Officer, Ward-60(7)

Parties Involved

Facts Summary

The assessee, Shokat Ali, filed his return of income for A.Y. 2017-18 declaring a total income of Rs.5,70,680/-. The case was selected for limited scrutiny under CASS on the issue of cash deposits during the demonetization period. The Assessing Officer noted that the assessee had deposited cash amounting to Rs.30,01,000/- during the demonetization period in his bank account. Despite various notices issued under sections 143(2) and 142(1) of the Act, the assessee failed to provide any explanation or supporting documentary evidence regarding the source of such cash deposits. Consequently, the AO treated the cash deposits as unexplained money under section 69A of the Act and added the same to the total income of the assessee, also invoking the provisions of section 115BBE of the Act. Aggrieved by this, the assessee filed an appeal before the CIT(A), contending that the cash deposits were made out of cash sales. However, the CIT(A) confirmed the addition after examining the submissions, cash book, and sales details, observing that the cash sales were unverifiable and showed an irregular pattern.…

Legal Issues

• 1. Addition on account of cash deposits aggregating to Rs.30,01,000/- during the period of demonetization.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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