Spectra Equipment Private Limited Vs ITO (ITAT Hyderabad)
The assessee, Spectra Equipment Private Limited, appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi dated 22.08.2023 for Assessment Year 2017-18.
The assessee had filed its return on 31.10.2017 declaring a loss of Rs.1,07,26,510. The return was initially processed under Section 143(1), after which the case was selected for scrutiny and notices under Sections 143(2) and 142(1) were issued.
During the demonetisation period, the assessee deposited Rs.50,000 on 23.12.2016 and Rs.1.50 crore on 30.12.2016 in Rs.500 and Rs.1,000 notes. During assessment proceedings, the assessee was asked to explain the source of the deposits. The Assessing Officer issued summons under Section 131 and letters under Section 133(6) to various parties.
Two parties, Sunil Forging & Steel Industries and Diamond Steel and Engineering Company, denied having given cash to the assessee. Sree Spectra Media stated that it had provided cash but did not furnish complete information. Other parties did not respond.
The Assessing Officer treated Rs.1,30,50,000 as unexplained cash deposits under Section 68 and added the amount to the assessee’s income. Tax was imposed at 60% under Section 115BBE. The assessment was completed under Section 143(3) on 23.12.2019.
