Case Law Details
Anaveer Proprietor Vs ITO (ITAT Bangalore)
In Anaveer Proprietor Vs ITO, the Income Tax Appellate Tribunal (ITAT) in Bangalore has restored the matter to reconsider the source of the cash deposits made during the demonetization period, in relation to the sales proceeds from LPG cylinders.
This case presents an intriguing scenario where demonetization and tax laws intersect. The appellant, Anaveer, a gas agency proprietor, had deposited a significant sum in the bank during the demonetization period in India. However, they failed to explain the source of the cash, leading to the assumption that it was an unexplained deposit under Section 69A of the Act.
The main point of contention revolves around the failure to link the sales of LPG cylinders with the cash deposits made during the demonetization period. Despite RBI notifications allowing the acceptance of demonetized notes for such transactions, the appellant has not been able to prove this linkage, leading to the restoration of the matter for reexamination.
Interestingly, an additional argument was raised about the non-inclusion of a Document Identification Number (DIN) in the original assessment order, aligning with CBDT Circular No. 19/2019. This argument, however, was left open as the case has been restored based on its merits.
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