Cumin Infotech Private Limited Vs ITO (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi Bench, has deleted an addition of Rs. 24,06,635/- made by the Assessing Officer (AO) to the income of Cumin Infotech Private Limited for the Assessment Year 2017-18. The addition, initially sustained by the Commissioner of Income Tax (Appeals) [CIT(A)], was related to cash deposits treated as unexplained money.
The case involved Cumin Infotech Private Limited, which had filed its return of income for AY 2017-18 declaring Nil income. During the assessment proceedings under section 143(3) of the Income Tax Act, 1961, the AO identified cash deposits totaling Rs. 33 lakhs in the company’s bank account. The assessee explained that these deposits, amounting to Rs. 24,06,635/-, were sourced from sale proceeds generated between October 1, 2016, and March 5, 2016.
However, the AO did not accept this explanation and treated the sum of Rs. 24,06,635/- as unexplained money, adding it to the assessee’s income under section 68 of the Act. The assessee contested this addition before the CIT(A). The CIT(A) upheld the addition but notably changed the section under which the addition was made, reclassifying it under section 69A of the Act, which deals with unexplained money.
