V R Auto Services Vs ACIT (ITAT Pune)
Summary: The Pune Bench of the Income Tax Appellate Tribunal allowed the appeal filed by V R Auto Services for Assessment Year 2017-18 against the order dated 26.12.2024 passed by the National Faceless Appeal Centre, Delhi under section 250 of the Income-tax Act, 1961, arising from the assessment order dated 27.12.2019 passed under section 143(3) of the Act.
The assessee was a partnership firm engaged in running a petrol pump and was an Authorised Dealer of Reliance Industries Limited. It had declared income of Rs.17,69,830/- in its return filed on 30.10.2017. During assessment, the Assessing Officer noted total cash deposits of Rs.4,01,16,000/- during the demonetisation period, including Specified Bank Notes (SBNs) amounting to Rs.2,65,51,000/-. Relying upon Gazette Notification Nos.3408(E) and 3447(e) dated 08.11.2016 and 13.11.2016, the AO observed that SBNs were permitted to be accepted for purchase of Petrol, Diesel and Gas at stations operating under the authorisation of Public Sector Oil and Gas Marketing companies, and that the notification was not applicable to authorised dealers of private companies.
After excluding the closing cash balance of Rs.28,17,815/- as on 08.11.2016, the AO treated the remaining amount of Rs.2,38,22,185/- as unexplained money under section 69A of the Act and also invoked section 115BBE. The assessee’s appeal before the CIT(A) was unsuccessful.
