Vasanth & Co v. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Vasanth & Co, engaged in selling fast-moving consumer goods, was selected for scrutiny under the Centralised Audit Scheme (CASS) to verify large cash deposits made during the demonetization period in Specified Bank Notes (SBNs). The Assessing Officer made additions of cash deposits of Rs.70,68,500/- as unexplained money under section 69A of the Income Tax Act, 1961. The assessee explained that the cash deposits were made out of sale proceeds and realization of debtors during the demonetization period. The Commissioner of Income Tax (Appeals) confirmed the action of the Assessing Officer. The assessee appealed to the Income Tax Appellate Tribunal, which allowed the appeal and deleted the addition made by the lower authorities.…

Legal Issues

• 1. Whether the addition of cash deposits made in Specified Bank Notes (SBNs) during the demonetization period can be made under section 69A of the Income Tax Act, 1961?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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