Sre Thanigai Agencies vs. The Income Tax Officer, Ward-2, Namakkal

Parties Involved

Facts Summary

The assessee, Sre Thanigai Agencies, a partnership firm engaged in the wholesale trade of poultry table eggs, filed its return of income for A.Y. 2017-18 declaring a total income of Rs.97,510/-. The case was selected for 'Complete Scrutiny' under CASS. The Assessing Officer found that the assessee made cash deposits totaling Rs.24,63,000/- during the assessment year, including Rs.14,13,000/- in SBNs during the demonetization period. The AO concluded that the assessee did not fall under the exempted category to accept SBNs and made an addition of Rs.14,13,000/- as unexplained cash deposits under section 69A of the Act. Aggrieved by this order, the assessee appealed to the ld.CIT(A), Agra, which confirmed the AO's order due to the assessee's failure to provide evidence.…

Legal Issues

• 1. Whether the assessee provided sufficient evidence to explain the source of cash deposits, particularly the SBNs deposited during the demonetization period.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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