Tabrez Iqbal Sayed v/s. ITO, Ward 12(3)(1)

Parties Involved

Facts Summary

The assessee filed his return of income on 07.07.2017 declaring total income of Rs. 6,72,730/-. The case was selected for limited scrutiny for verification of cash of Rs. 33,50,000/- deposited in his bank account during the demonetization period. Before the Assessing Officer, the assessee contended that he was receiving his salary in cash as a director of M/s. Jharokha Hotels & Properties Pvt. Ltd. Further, the said cash was the closing cash balance of the previous year. However, the Assessing Officer added the entire amount u/s 69A of the Act on the ground that the salary being more than 20,000/- could not have been received in cash and the amount deposited in cash in the bank account was also not be commensurate with his salary of merely Rs. 7,80,000/- during the year. The Commissioner of Income-tax (Appeals) upheld the order of the Assessing Officer. Aggrieved the assessee is in appeal before the Tribunal. The Tribunal found that the assessee had shown receipt of salary income in cash during this year as well as in the preceding years. The Tribunal also found that the facts of the present case are nearly identical with the above cited case and thus, deleted the addition made by the lower authorities.…

Legal Issues

• 1. Whether the National Faceless Appeal Centre, Delhi is justified in confirming the addition of Rs.33,50,000/- under section 69A of the Act?
• 2. Whether the National Faceless Appeal Centre, Delhi is justified in confirming the actions of the Assessing Officer in treating the cash deposits amounting to Rs.33,50,000/- as unexplained money as per section 69A of the Act?
• 3. Whether the National Faceless Appeal Centre, Delhi is justified in confirming the actions of the Assessing Officer in invoking the provisions of section 115BBE of the Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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