Vikas Sabharwal (HUF) vs. The ITO

Parties Involved

Facts Summary

During the assessment year 2017-18, the assessee filed an income return declaring a total income of Rs. 2,18,980/-. The case was selected for complete scrutiny under CASS due to cash deposits during the demonetization period and gross total income including exempt income and agricultural income. The assessee was asked to explain a cash deposit of Rs. 30,00,000/- made on 22.12.2016. The assessee claimed that the cash deposit was part of income declared under the Income Declaration Scheme (IDS) 2016 and the applicable taxes were paid. However, Form 4 of the IDS was not issued by the department. The Income Tax Officer confirmed the bank deposits and tax payments but treated the cash deposit as unexplained. The assessee appealed against the order of the Commissioner of Income Tax (Appeals) which sustained the order of the Assessing Officer.…

Legal Issues

• 1. Whether the addition of Rs. 30,00,000/- made by the Assessing Officer is justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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