Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


ITO v. AMS Trading & Investment (Mum) (Trib) (UR)

S. 68 : Cash credits-Share premium-Share application-Statement recorded by the investigation wing is retracted-The assessee prima-facie has complied with the ingredients required u/s 68 of the Act of genuineness, identity and creditworthiness-The A.O has failed to make further enquiries and relied only on statement of the key person, which was retracted subsequently-Addition is deleted. [S. 132]

ACIT v. Ramlal Jewellers Pvt. Ltd (2023) 154 taxmann.com 584 (Mum) (Trib)

S. 68 : Cash credits-Cash deposits-Demonetization-Stock register-Tallied with quantity item of sales-Addition is deleted.[S. 133(6)] Tribunal held that addition u/s.68 on account of cash deposits cannot be made simply on the reason that during the demonetization period, cash deposits vis-a-vis cash sales ratio is higher. If the parties during the period of demonetization has purchased huge quantity of jewellery on cash which has been duly recorded in the books of accounts of the assessee and also tallying with the quantity of stock, then simply because there was a huge cash sales in that particular month cannot be the reason for treating it as undisclosed income from undisclosed sources. The parties to whom notices u/s. 133(6) were issued have confirmed the purchases but also filed the purchase bills. The ld. AO cannot disbelieve the purchases made from the assessee simply on the ground that those parties could not submit the source of their funds which is not the requirement of the assessee to prove specifically when assessee is a retail seller of jewellery and even law does not prohibit any cash sales or there is any requirement to seek any further detail. For this compliance assessee has also filed Form 61A before the ld. AO. Once, it has been established that sales representing outflow of stocks is duly accounted in the books of accounts and there are no abnormal profits during the year, then there is no justification why AO should treat the deposits made in the bank account out of cash sales to be income from undisclosed sources..[ITA. 1600/M/2023 & CO. 63/M/2023 Dated 26/07/2023.)(AY. 2017-18)

DCIT v.Mangal Bullion Pvt. Ltd (Mum.) (Trib.) (UR)

S. 68 : Cash credits-Cash deposits-Demonetization-Cash sales-Jewellery-Provided PAN and complete address of buyers-Stock register is maintained-Failure to enquire by the Assessing Officer under section 131 or 133(6)) of the Act-Addition is deleted.[S. 131, 133(6)]

Emgee Integrated Logistics Private Limited v. ACIT (Chennai)(Trib)

S. 68 : Cash credits-Cash deposits-Demonetization-Burden is on the AO to prove.

Abhishek Bipinbhai Naik v. ITO (Surat) 201 ITD 858(Surat)(Trib)

S. 68 : Cash credits-Unexplained money-Demonetization-Cash deposits in the bank accounts were not abnormal as compared to the transaction in the earlier period-Appeal is allowed.[S. 69. 69A]

Abdul Razak v. ITO (IT) (Chennai) 202 ITD 161 (SMC) (Chennai)(Trib)

S. 68: Cash credits Demonetization-Withdrwals of family members-Addition is deleted.[S. 69,115BBE]

Rahul Gupta (HUF) v. ACIT [2023] 201 ITD 302 (SMC) (Raipur)(Trib)

S. 68 : Cash credits Unexplained money-Shares-Accommodation entries-Penny stock-Bogus entries of long term capital gains-Tax on specified income-Determination of tax in certain cases-Addition is affirmed under section. 115BBE of the Act. [S. 45, 69, 69A ,115BBE, 133(6)]

Moss Hospitality (P.) Ltd. v. ITO (2023) 201 ITD 726 (Mum (Trib.)

S. 68: Cash credits-Unexplained money-Demonetisation-Books of account is audited-Matter remanded. [S. 69]

Shail Jayesh Shah v .ITO (2023)101 ITR 38 (SN.) (Mum) (Trib)

S. 68 : Cash credits-Unexplained money-Demonetisation-Cash available in old demonetised currency-Withdrawal from bank upto November 8, 2016-Disallowance to that extent not sustainable-Balance disallowance of cash is proper.[S. 69]

Movefast Automobiles (P.) Ltd. v. Income-tax Officer (2023) 201 ITD 766 (Delhi) (Trib.)

S. 68 : Cash credits-Share capital-Share premium-Discharged the burden by filing copy of ITR,balance sheet of invvestors,PAN address,confirmation of account ,bank statement and valuation report-DCF method-Addition is deleted .[S. 56(2)(viib),133(6) R.11UA]