Case Law Details
Janatha Fish Meal & Oil Products Vs PCIT (ITAT Bangalore)
ITAT Bangalore held that assessee has paid money for the purpose of investment which is not disputed and therefore the provisions of Section 269ST of the Act is not applicable.
Facts-
Post search operations and proceedings, AO concluded the assessment by accepting the return of income filed by the assessee.
However, the PCIT stated that unexplained stock is offered under the head “income from other source” and not routing it through profit and loss account and therefore should be categorised as unexplained investment u/s.69C to be taxed at special rate of tax u/s. 11 5BBE. The PCIT further stated that the investment made in cash is in violation of Section 269ST of the Act and therefore to be assessed accordingly, which the AO failed to do. The PCIT therefore issued a show cause notice to the assessee in this regard. After considering the submissions made by the assessee the PCIT passed an order under Section 263 of the Act.
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