Assessment Year: 2017-18
Case Filed On: 2021-09-15
Order Type: Final Tribunal Order
Date of Order: 2023-04-13
Result: Appeal allowed in favor of the assessee
Case Conclusion: The Income Tax Appellate Tribunal, Delhi Bench, upheld the deletion of Rs.2,39,00,000/- addition made by the Assessing Officer under section 68 of the Income Tax Act, 1961. The Tribunal found that the assessee, Patent Tea Company Pvt. Ltd., adequately substantiated the cash deposits during the demonetization period through audited accounts and bank statements, showing proper recording and verification of sales and deposits. The appeal of the Revenue was dismissed, affirming the order of the CIT(A) Delhi-7.
Judgment Summary: The Tribunal, comprising of Shri G. S. Pannu, President, and Shri Challa Nagendra Prasad, Judicial Member, considered the submissions of both parties. The Revenue’s appeal challenged the CIT(A)’s decision to delete the addition of Rs.2,39,00,000/- made by the AO. The AO had alleged unexplained cash deposits during the demonetization period in the assessee’s bank account. However, the CIT(A) found in favor of the assessee, accepting the evidence provided of regular business operations and audited accounts. The Tribunal upheld the CIT(A)’s decision, dismissing the Revenue’s appeal.
Income Tax Appeal No. 1130/DEL/2021 – Patent Tea Company Pvt. Ltd. vs. ITO, Ward-19(3), New Delhi
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