Madras HC orders Fresh Assessment Over Insufficient details on employee’s Cash Transactions [Read Order]
The bench observed that the final assessment order should have given the particulars of the cash transactions of the account of the said employee, namely Meruva Sanjeeva Kumar.
![Madras HC orders Fresh Assessment Over Insufficient details on employee’s Cash Transactions [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/12/Madras-HC-Madras-HC-orders-Assessment-Over-Insufficient-details-employees-Cash-Transactions-Fresh-Assessment-Over-Insufficient-details-Madras-High-Court-insufficient-details-Taxscaan-3.jpg "Madras HC orders Fresh Assessment Over Insufficient details on employee’s Cash Transactions [Read Order]")
In a recent ruling, the Madras High Court ruled in favour of the assessee and ordered fresh assessment due to insufficient details in the assessment order on employee’s cash transactions. Particulars of the cash transactions of the account of the said employee, namely Meruva Sanjeeva Kumar. Become a PF & ESIC expert with our comprehensive course - Enroll Now The petitioner,...
In a recent ruling, the Madras High Court ruled in favour of the assessee and ordered fresh assessment due to insufficient details in the assessment order on employee’s cash transactions.
Particulars of the cash transactions of the account of the said employee, namely Meruva Sanjeeva Kumar.
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The petitioner, E2E Supply Chain Solutions Ltd., had challenged the Income Tax Department’s notices for reopening assessments for the assessment years 2014-15 and 2015-16. The notices were issued on March 31, 2021, invoking provisions of Section 148 of the Income Tax Act, as applicable before April 1, 2021.
The assessee contended that, in accordance with the Supreme Court's ruling in Union of India v. Ashish Agarwal (2022), these procedures should have followed the revised laws that went into effect after April 1, 2021.
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The problem in this case began with a reported cash credit of Rs. 30,32,416 in the bank account of an employee, Meruva Sanjeeva Kumar, which was linked to the petitioner company.
These transactions, according to the Income Tax Department, violated Section 40A(3) of the Act and had to be included in the company's taxable income.
It was contended by the petitioner that the details of these cash transactions were not adequately furnished, denying them a fair opportunity to respond.
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The bench observed that although the assessment was reopened based on information gathered from the Investigating Wing of the Income Tax Department, the final assessment order should have given the particulars of the cash transactions of the account of the said employee, namely Meruva Sanjeeva Kumar.
Justice C. Saravanan remitted the case back to the Deputy Commissioner of Income Tax.
The bench set aside the impugned orders and directed the department to issue fresh orders by giving particulars of the date of cash transactions made into the account of the said employee, MeruvaSanjeeva Kumar.
To Read the full text of the Order CLICK HERE
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