2026 (6) TMI 664

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.... the Appeal filed by the Assessee against the Assessment Order passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) dated 19.11.2019 passed by the Assistant Commissioner of Income Tax, Circle - 1, Udupi (the Ld. Assessing Officer) was dismissed. 2. The Assessee is aggrieved and is in Appeal before us. The only dispute in this Appeal is addition of Rs. 27,00,000/- to the total income of the Assessee on account of deposit of the above sum in the bank account of the Assessee added by the Ld. Assessing Officer u/s. 68 of the Act. 3. The brief facts of the case show that Assessee is a partnership firm engaged in the business of civil construction etc., filed its return of income on 28.10.2017 at a total income of Rs. 1,08,09,310/-. The....

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....Assessing Officer disbelieved the explanation of the Assessee and held that Rs. 27,00,000/- deposited by the Assessee on 3 occasions in tranches of Rs. 9,00,000/- which is unexplained sum and therefore the addition was made u/s. 68 of the Act. 5. The Assessee approached the Ld. CIT(A) wherein the same explanation was given. The Assessee also produced the details produced before the Ld. Assessing Officer. The Ld. CIT(A) noted that the currency deposited in the bank account was demonetized currency and the pattern of booking of the labor expenses show that there is a meagre booking of such expenses and therefore there is no justification of withdrawal and redeposit into the bank account. Accordingly, the Appeal of the Assessee was dismisse....