Shyamkumar Chanduulal Sugandh v/s Asstt. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Shyamkumar Chanduulal Sugandh, is engaged in the business of brokerage and commission business of Betel Nuts (supari) as a commission agent under the name and style of 'M/s. Shyamkumar Sugandh'. The assessee filed its return of income on 26/11/2020, declaring net taxable income at ` 42,50,705, which includes income from house property, income from business, and income from other sources. A search and seizure action was conducted at the residential and business premises of the Kamnani Group, Nagpur, on 16/01/2020, and it was concluded on 28/01/2020. During the search, some rough noting documents were found. The Department contended that the assessee had made cash transactions with the Kamnani Group, while the assessee denied any such transactions. The Assessing Officer treated the transactions as unaccounted cash transactions and made an addition of ` 2,03,318, @ 8% of the transaction of ` 25,41,479. The assessee appealed to the Commissioner of Income Tax (Appeals)-3, Nagpur, which was confirmed. The assessee further appealed to the Tribunal.…

Legal Issues

• 1. Illegality of the order passed under section 143(3)
• 2. Unjustified addition of Rs.1,27,074
• 3. Illegal addition under the head income from business
• 4. Unaccounted cash transaction with Kamnani Group
• 5. Unjustified addition based on rough noting and jotting
• 6. Charging of interest under sections 234A, 234B, and 234C

Judgment Outcome

Decided in favour of Assessee.

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