JCIT Vs Aries Agro Ltd. (ITAT Mumbai)
Mumbai, India – The Income Tax Appellate Tribunal (ITAT) Mumbai Bench has dismissed an appeal filed by the Joint Commissioner of Income Tax (JCIT) – 14(1)(1) against Aries Agro Ltd., upholding the decision of the National Faceless Appeal Centre, Delhi (NFAC) to delete additions made under Section 68 of the Income Tax Act, 1961. The case pertains to the assessment year 2017-18 and revolves around substantial cash deposits made by Aries Agro Ltd. in Specified Bank Notes (SBNs) during the demonetization period. The revenue had contended that these deposits constituted unexplained cash credits, while the assessee maintained they were legitimate receipts from credit sales.
Background of the Dispute
Aries Agro Ltd., a publicly listed company with significant public interest, operates in the manufacturing of mineral additives for agriculture, micronutrients, and other nutritional products for plants and animals. The company maintains a widespread network, including six factories, 28 sales depots, and over 357 dealers across India. For the assessment year 2017-18, the assessee filed its return of income on November 30, 2017, declaring a total income of ₹18,98,37,210. This return was supported by a computation of income, audited accounts, and a tax audit report.
