Sukir Ladaku Naik Vs ITO, 28(3)(1), Mumbai

Parties Involved

Facts Summary

The assessee, Sukir Ladaku Naik, is an individual and proprietor of Sanjay Country Bar, engaged in the business of selling Indian-made liquor. All sales during the relevant financial year were in cash, which were deposited in bank accounts daily. During the financial year, the assessee made purchases of Rs.1.12 Crore and showed sales of Rs.1.33 Crore. The total cash deposited was Rs.1.11 Crore, including Rs.3,97,000/- in the form of Specified Bank Notes (SBN) during the demonetisation period. The Assessing Officer added Rs.3,97,000/- and taxed it under Section 115BBE. The assessee argued that the addition should be deleted or at least a concession of Rs.2.50 Lakhs as per CBDT Circular No.3/2017 should be allowed.…

Legal Issues

• 1. Whether the addition of Rs.3,97,000/- on account of cash deposit under section 68 of the Income Tax Act is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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