Tamilnadu Tourism Development Corporation Ltd. vs. The Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Tamilnadu Tourism Development Corporation Ltd., is engaged in the business of promoting tourism-related activities. During the assessment proceedings, the Assessing Officer noted that the assessee had made large cash deposits during the demonetization period in Specified Bank Notes (SBNs) to the extent of Rs.2,14,84,000/- in various bank accounts. The assessee explained that the deposits were closing cash balances as on 8.11.2016 as per the cash book duly certified by the Auditor. The Assessing Officer added the excess deposit of SBN notes to the extent of Rs.1,48,32,500/- as unexplained cash deposit under Section 69 of the Income Tax Act, 1961. The assessee appealed to the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), which was confirmed by the CIT(A). The assessee further appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. The addition of cash deposit of Rs.1,48,32,500/- by invoking the provisions of Section 69 of the Act as unexplained cash deposit being demonetized cash in Specified Bank Notes (SBNs).
• 2. The disallowance of employee provident fund of Rs.1,19,40,581/-. The assessee argued that the sum should be allowed as it was paid before the due date for filing return of income under Section 43B of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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