The case involves Rajesh Ruhil, a resident of Rohtak, Haryana, against the Income Tax Officer, Ward-5, Rohtak. This appeal for the assessment year 2013-14 challenges the tax assessment based on cash deposits of Rs. 39 lakhs which were purportedly from the sale of two JCB machines.
The appeal was filed in response to the order dated December 16, 2019, by the CIT(A), Rohtak. The core issue revolves around whether the cash deposits made by the assessee were from the sale of machinery he allegedly owned and sold in cash to different parties in 2012.
The tribunal reviewed the evidence and heard arguments from both sides. The primary matter to determine was the existence and ownership of the JCB machines JS140TE and JS200 before they were sold. The Income Tax Officer was directed to verify the existence of these machines and the assessee was ordered to provide details supporting the purchase and existence of the machinery at the relevant times.
This case highlights the complexities of substantiating cash transactions in tax assessments. The tribunal’s decision reflects the need for clear documentation and evidence when claiming income from the sale of assets. The outcome not only upheld the scrutiny by tax authorities but also set a precedent for similar cases involving the sale of high-value assets in cash.
Order pronounced in the open court on January 24, 2023.
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