ITO Vs Devesh Pharma (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) partly allowed the Revenue’s appeal for statistical purposes and restored the matter to the Assessing Officer for verification of factual aspects relating to additions made under Section 69A of the Income Tax Act, 1961.
The case arose from an assessment order passed under Section 144 for Assessment Year 2017-18, wherein the Assessing Officer treated deposits and credits appearing in the bank account of M/s Devarshi Pharma as unexplained money under Section 69A. The firm had been selected for scrutiny due to cash deposits of Rs. 12,00,000 made during the demonetisation period from 09.11.2016 to 30.11.2016. Since no return of income had been filed for the relevant assessment year and notices issued under Section 142(1) remained uncomplied with, the Assessing Officer proceeded on the basis of the bank statements.
The Assessing Officer observed that cash deposits of Rs. 27,90,000 and other credits amounting to Rs. 1,27,92,803 had been made in the bank account during the financial year 2016-17. In the absence of any explanation regarding the nature and source of the aggregate amount of Rs. 1,55,82,803, the entire amount was treated as unexplained money under Section 69A and added to the total income of the firm.
