Amit Dokwal Vs ITO (ITAT Hyderabad)
Material Facts
The assessee, an individual engaged in the business of trading in agricultural produce, challenged the order of the Commissioner of Income Tax (Appeals), NFAC, dated 08.12.2025 for Assessment Year 2013-14. The Assessing Officer initiated reassessment proceedings under Sections 147 and 148 after receiving information regarding cash deposits in the assessee’s bank account. During reassessment, the Assessing Officer treated cash deposits of ₹42,40,000 as unexplained money under Section 69A and completed the assessment under Sections 147 read with 144B, determining the total income at ₹54,78,270. The CIT(A) confirmed the addition.
Procedural History
The assessee appealed against the assessment order before the CIT(A), who upheld the addition of ₹42,40,000 under Section 69A. Aggrieved by that decision, the assessee filed an appeal before the ITAT Hyderabad.
Legal Issues
- Whether the addition of ₹42,40,000 under Section 69A was sustainable when the same amount had already been disclosed as business turnover and offered to tax under Section 44AD.
- Whether the cash deposits could be separately taxed as unexplained money after acceptance of the returned business turnover.
Relevant Statutory Provisions
- Section 44AD
- Section 69A
- Sections 147, 148 and 144B
- Section 115BBE
- Sections 234A, 234B and 234C
- Sections 271(1)(c) and 271F
Assessee’s Submissions
