Surajmal Garg Metals Pvt. Ltd. Vs. Income Tax Officer, Ward-24(4), Delhi

Parties Involved

Facts Summary

The assessee, Surajmal Garg Metals Pvt. Ltd., is engaged in the metal trading of copper, aluminum, brass-sheets, and scraps. It has obtained VAT registration and is recognized as a wholesaler and retailer. The case pertains to the assessment year 2017-18, where the assessee challenged the findings of the lower authorities treating its cash deposits made during demonetization amounting to Rs.52,49,500/- as unexplained under section 68 r.w.s. 115BBE of the Income-tax Act, 1961. The assessee produced its sales register, but the lower authorities were not satisfied. The assessee argued that its business activities were regular and should not be denied entirely.…

Legal Issues

• 1. Whether the cash deposits made by the assessee during demonetization amounting to Rs.52,49,500/- should be treated as unexplained income under section 68 r.w.s. 115BBE of the Income-tax Act, 1961.
• 2. Whether the assessee should be assessed under section 115BBE of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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