Case Law Details
ITO Vs Parmanand Gupta (ITAT Raipur)
Held that the re-assessment and addition of the duly accounted cash sales of the assessee as unexplained cash credits u/s 68 by the AO without rejection of the books of account of the assessee u/s 145(3) of the Act is unjustified
Facts-
During the course of the re-assessment proceedings, it was observed by the A.O that there were cash deposits amounting to Rs. 5,22,81,663/-. However, as the assessee had failed to substantiate the nature and source of the cash deposits in his bank accounts on the basis of supporting documentary evidence, the A.O after rejecting his explanation held the entire amount of cash deposits of Rs. 5,22,81,663/- as unexplained cash credits u/s.68 of the Act. Accordingly, the A.O vide his order passed u/s.143(3) r.w.s.147, dated 15.03.2016 assessed the income of the assessee at Rs. 5,28,66,726/-.
Aggrieved, the assessee carried the matter in appeal before the CIT(A). CIT(A) deleted the addition. Being aggrieved, revenue has preferred the present appeal.
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