Srigadhi Ashvanth Kumar vs. ITO

Parties Involved

Facts Summary

The assessee, Shri Srigadhi Ashvanth Kumar, filed his return of income for the assessment year 2017-18 on 19.01.2018, declaring total income of Rs. 3,51,840/-. The case was selected for complete scrutiny, and notice under section 143(2) of the Income Tax Act, 1961 was issued on 04.09.2018. During the year under consideration, the assessee deposited cash aggregating to Rs. 42,75,000/- in his bank account. The Assessing Officer treated the entire amount as unexplained money under section 69A of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals), who sustained the addition. The assessee then appealed to the Income Tax Appellate Tribunal. The assessee argued that the cash deposits were part of his business receipts and past savings, which were already disclosed and taxed under section 44AD of the Act.…

Legal Issues

• 1. Whether the cash deposits aggregating to Rs. 42,75,000/- made by the assessee during the demonetization period are liable to be treated as unexplained money under section 69A of the Act.
• 2. Whether the assessee has reasonably explained the nature and source of the cash deposits.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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