Case Law Details
Mohammad Ibraheem Khatri Vs ITO (ITAT Indore)
Introduction: The case of Mohammad Ibraheem Khatri vs ITO (ITAT Indore) sheds light on the repercussions of cash deposits made after the declaration of demonetization. The Indore Income Tax Appellate Tribunal’s (ITAT) ruling emphasizes that such deposits do not necessarily indicate suspicious cash sales. This article provides a comprehensive analysis of the case, including the grounds of appeal, arguments presented, and the tribunal’s decision.
Detailed Analysis:
1. Grounds of Appeal: The appellant, Mohammad Ibraheem Khatri, contested the Commissioner of Income Tax (Appeals)’s order regarding the addition of Rs. 5,00,000 to his total income. The key grounds of appeal included challenging the ex-parte decision, disputing the addition under section 68 of the Income Tax Act, and contesting the application of amended provisions of section 115BBE.
2. Assessee’s Position: The appellant, engaged in the textile business, asserted that the cash deposits during demonetization were from legitimate cash sales. The appellant provided evidence such as cash books, comparative financial statements, and monthly cash sales details to support this claim.
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