Suwalka and Suwalka Properties and Builders Pvt. Ltd. vs. ACIT

Parties Involved

Facts Summary

Suwalka and Suwalka Properties and Builders Pvt. Ltd. is a corporate entity engaged in the business of real estate. The company filed its income return for the assessment year 2017-18, declaring a total income of Rs. 3,67,82,720/-. The case was selected for scrutiny, and the Assessing Officer (AO) issued notices under sections 143(2) and 142(1) of the Income Tax Act, 1961. The AO made a lump sum addition of Rs. 15,00,000/- in the total income of the assessee for the year under consideration. The assessee deposited Rs. 2,79,00,000/- in its various bank accounts during the demonetization period, which the AO treated as unexplained cash credit under section 69A of the Act and taxed it at a higher rate under section 115BBE. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who partly allowed the appeal. The assessee further appealed to the Income Tax Appellate Tribunal (ITAT), challenging the rejection of its books of account by the CIT(A) and the addition made by the AO.…

Legal Issues

• 1. Rejection of books of account by CIT(A) under section 145(3) of the Income Tax Act, 1961.
• 2. Addition of Rs. 2,64,00,000/- by AO under section 68 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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