Case Law Details
Vaishnavi Bullion Private Limited Vs ACIT (ITAT Hyderabad)
ITAT Hyderabad held that no legal sale of gold can be made with the use of either prohibited currency or prohibited Specified Bank Notes (SBNs)
Facts- Assessee is a Private Limited Company engaged in the business of trading in gold, diamond jewellery and bullion. In this case, a search and survey action u/s 133A of the Act was carried out in the business premises of the assessee on 01.12.2016 by the Investigating Wing. During the survey, it was noticed that assessee had deposited Rs.39,64,98,000/- in its Axis Bank account and Rs.50,00,000/- in Bank of Baroda, Hyderabad and thus, the total deposit after demonetization made by the assessee company was Rs.40,14,98,000/-. Later, the MD of the assessee filed a declaration of Rs.40 crore under Pradhana Mantri Garib Kalyan Yojana, 2016 (PMGKY) on 30.12.2016 and paid tax of Rs.1 crore on 13.01.2017. Thereafter, the M.D. filed an affidavit withdrawing the declaration on 16.01.2017 filed under PMGKY.
The assessee submitted that the assessee had agreed to cover under the Pradhana Mantri Garib Kalyan Yojana, 2016 as the assessee was given the assurance, no criminal prosecution / PMLA inquiry / investigation would not be done.
Later on ED started investigation and the income tax department made an addition against the assessee based on the confession made by the Director of the assessee before the ED.
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