S. 69C : Unexplained expenditure-Undisclosed income declared during search and seizure-Income credited to books of accounts-Corresponding expenditure to also be included-CIT (A) justified in deleting additions.[S. 132(4)]
ACIT v. Vendhar Movies (2022)97 ITR 17 (SN.) (Chennai)(Trib.)
Digest of case laws
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This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
Click here to download the pdf versions of the Digest of case laws S. 69C : Unexplained expenditure-Unable to identify the purchasers-Sale of finished goods subject to tax-Entire purchases cannot be disallowed-Addition was restricted to 10% of purchases-Income from undisclosed sources-Fixed deposit in bank-Matter remanded. [S. 68, 26AS]
Accra Pac (India) Pvt. Ltd. v. Dy. CIT (2022) 100 ITR 30 (SN) (Ahd)(Trib)S. 69C : Unexplained expenditure-Gifts given to beneficiaries of chit fund scheme-Admitted Rs. 3. 2 crores as undisclosed income-Benefit of telescoping has to be given-WhatsApp messages-WhatsApp message sent from assessee’s mobile phone-WhatsApp messages are a dumb document without any corroborative evidence on record-No addition can be made on the basis of said documents. [S. 153A]
A.Jhonkar v. Dy. CIT v. Johnkumar Trust (2022) 220 TTJ 187 (Chennai) (Trib) Dy. CIT v. Johnkumar Trust (2022) 220 TTJ 187 (Chennai) (Trib)S. 69C : Unexplained expenditure-Bogus purchases-Restricted to 12.5 % of bogus purchases. [S. 133(6), 143(3)]
Macleods Pharmaceuticals Ltd. v. Dy. CIT (2022) 217 TTJ 763/ 214 DTR 105 (Mum)(Trib)S. 69B : Amounts of investments not fully disclosed in books of account-Jangad (memo of NE)-Rough rejections and rough diamonds-Valuation report-Addition was deleted. [S. 131]
Dy. CIT v. Mahendra Brothers Exports Pvt. Ltd. (2022) 99 ITR 537 (Mum)(Trib)S. 69A : Unexplained money-Income from undisclosed sources-Data retrieved from the hard disk revealed undated, unsigned and unexecuted draft deed and draft cash receipt relating to the transaction of sale of property between the assessee and third party-Such draft deed and originally executed deed being exactly similar such material cannot be ignored-Addition was up held-Reassessment was held to be valid. [S. 147, 148]
DCIT v. Shivram Consultants India (P) Ltd. (2022) 220 TTJ 640 / 220 DTR 9 (Delhi) (Trib.)S. 69A : Unexplained money-Deposits of cash in bank account-Cash withdrawals from bank account more than cash deposited-Addition is not justified.
Shanmugam Ethiraj v. ITO (2022) 96 ITR 17 (SN) (Chennai) (Trib)S. 69A : Unexplained money-Cash deposits-Information received from Enforcement Directorate of cash deposits in bank accounts-Rule of consistency-Addition was deleted. [S. 69]
Sarabjit Kaur (Smt.) v. ITO (2022) 96 ITR 440 (Chd.)(Trib.)S. 69A : Unexplained money-Agricultural income-Disallowance at 25 Per Cent of expenses incurred for earning agriculture income is held to be reasonable.
Jigar Ashok Hebra v. ITO (2022) 96 ITR 310 (SMC) (Ahd) (Trib)S. 69A : Unexplained money-Money received from relatives-entries recorded in the books of accounts-Explanation of the purpose of receiving the money given-Identity of persons not in doubt-payments received through banking channel-Addition made not proper.
Jagmohan Kaur Bajwa (Smt.) v. ITO (2022)97 ITR 149 (Chd) (Trib)