Sudha Agarwal vs. Asst. CIT

Parties Involved

Facts Summary

The assessee, Sudha Agarwal, is an individual and proprietor of M/s Shreeji Diamond World, engaged in the business of trading diamond jewellery on a retail basis. The return of income for the year under appeal was filed on 19/06/2017 declaring total income at Rs. 28,35,570/-. The case was selected under CASS and the assessment was completed u/s 143(3) of the Act assessing the income of the assessee at Rs. 2,54,66,307/- by making addition of Rs. 1,27,15,000/- u/s 68 of the Act on account of cash deposit during demonetization as undisclosed income and further made addition of Rs. 99,15,777/- on account of under valuation of stock. Against such order, the assessee preferred an appeal before the ld. CIT(A) who partly allowed the appeal by reducing the addition on account of cash deposited during demonetization and under valuation of stock. Aggrieved by this order, the assessee is in appeal before the Tribunal.…

Legal Issues

• 1. Whether the addition of Rs. 85,00,000/- on account of unexplained credit under section 68 of the Income Tax Act, 1961 is justified.
• 2. Whether the addition of Rs. 23,99,550/- on account of under valuation of stock is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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