VED PRAKASH VS. ITO, WARD 3, REWARI HARYANA

Parties Involved

Facts Summary

The assessee, Ved Prakash, deposited cash of Rs. 18,85,500/- in his bank accounts with Oriental Bank of Commerce during the demonetization period. The Assessing Officer (AO) found that no return of income was filed by the assessee for the assessment year 2017-18 and issued a notice under section 142(1) of the Income Tax Act on 25/01/2018 requiring the assessee to file his return of income. In response to the show cause notice, the assessee explained the cash deposits as made out of the cash in hand, bank withdrawals, and sales made. The AO accepted the source of Rs. 10,67,500/- and added the remaining amount of Rs. 8,18,000/- to the total income of the assessee by treating this amount as unexplained income under section 69A of the Income Tax Act, 1961. The assessee appealed before the Commissioner of Income Tax (Appeals) who dismissed the appeal. Against this order, the assessee is in appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the order of the Ld. CIT(A) is against law and facts.
• 2. Whether the Ld. CIT(A) erred in dismissing the appeal of the appellant and thereby confirming the addition of Rs. 8,18,000/- made by the AO to the total income of the appellant by not accepting the source of cash deposit in the bank account during demonetization period.
• 3. Whether the Ld. CIT(A) erred in confirming the action of the AO in invoking Sec. 69A while making an addition of Rs 8,18,000/-, although the same doesn’t fall within the purview of Sec. 69A.
• 4. Whether the Ld. CIT(A) erred in confirming the action of the AO in invoking section 115BBE of the Act while making addition to the total income of the appellant, although the addition made does not fall within the purview of section 115BBE.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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