Vellaisamy Sekar vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Vellaisamy Sekar, is engaged in the business of trading in paddy. He filed his return of income for the Assessment Year 2017-18 on 10.06.2017, reporting an income of Rs.3,34,430/-. The case was selected for scrutiny due to large agricultural income, large cash deposits during the demonetisation period, and abnormal increase in sales and decrease in profitability. The Income Tax Officer (AO) made an addition of Rs.43,55,000/- under section 69A of the Income-tax Act, 1961, as the source of the cash deposits was unexplained. The assessee appealed against this order, which was rejected by the Commissioner of Income Tax (Appeals). The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the authorities below were justified in treating the cash deposits aggregating to Rs.43,55,000/- made by the assessee during the demonetisation period as unexplained money u/s.69A of the Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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