MIKUL MAHESH SHAH,MUMBAI vs. INCOME TAX OFFICER (ITO), MUMBAI

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ITA 1286/MUM/2025Status: DisposedITAT Mumbai27 November 2025AY 2017-18Bench: SMT. BEENA PILLAI (Judicial Member), SMT. RENU JAUHRI ( (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the authorities below had not considered relevant CBDT Circulars. The AO is directed to verify the demonetized cash based on the applicable circular, and the assessee is to furnish details. The appeal is partly allowed for statistical purposes.

What were the facts?

The assessee deposited Rs. 13,44,000/- in cash during the period 09/11/2016 to 31/12/2016. The Assessing Officer (AO) noted that the assessee did not file a return of income and made an addition.

What were the issues?

Whether the AO properly considered CBDT circulars for verification of demonetized cash deposits and if the addition made was justified.

Which sections of the Income-tax Act were involved?

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SMT. RENU JAUHRI

For Appellant: Ms. Tazeen T. Khan, A/R
For Respondent: Shri Annavaran Kosuri, Sr. A/R
Hearing: 19.11.2025Pronounced: 27.11.2025

Heard together (2 matters)

I.T.A. No. 1286/Mum/2025
S.A. No. 49/Mum/2025

Read from the judgment's own cause title. This page is filed under one of them.

Per Bench: The present appeal by the assessee is filed against the order dated 27/05/2024 passed by the NFAC, Delhi [hereinafter ‘the Ld. CIT(A)’] for AY 2017-18.

2.

The Ld. AR submitted that, the assessee maintained his accounts with Bank of Baroda and had deposited Rs. 13,44,000/- in cash during the period 09/11/2016 to 31/12/2016. The Ld. AO noted that the assessee did not file any return of income filed for the year under consideration and, therefore, the addition was made in hands of the assessee.

3.

The Ld. CIT(A) upheld the addition made by the Ld. AO.

1.

We have considered the submissions advanced by both the sides in light of the records placed before us.

4.

It is noted that the authorities below has not considered the following CBDT Circulars/Instructions, to verify the cash deposited by the assessee :-

1.

1. a) Instruction 3/2017, issued on February 21, 2017. b) Instruction No. 4/2017 dated 3rd March, 2017. c) Circular F. No. 225/363/2017 – ITA. II, dated 15/11/2017. d) Circular F.no.225/145/2019-ITA.II dated 09/08/2019.

4.2. The Ld. AO is directed to verify the demonetized cash based on the applicable Circular specific to the assessee. The assessee is directed to furnish PAN and other details of the depositors if circumstances so warrant, in order to assist the Ld. AO to consider the claim in accordance with law. Needless to say that proper opportunity of being heard must be granted to the assessee in accordance with law.

Accordingly, Grounds raised by the assessee stand partly allowed for statistical purposes.

In the result, appeal filed by the assesse stands partly allowed for statistical purposes.

Order pronounced in open court on 27/11/2025

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