MANISH KUMAR GOLECHHA,BARMER vs. ITO, BALOTRA

ITA 1025/JODH/2025Status: DisposedITAT Jodhpur22 September 2026AY 2018-198 pages
AI SummaryAllowed

What were the facts?

The assessee's case was selected for scrutiny, leading to additions under Section 44AD for cash deposits and unsecured loans, and additions for interest income, unexplained sundry creditors under Section 68, and related interest disallowance under Section 69C. The first appellate authority confirmed these additions.

What did the Tribunal hold?

The Tribunal deleted the Section 44AD additions, finding the cash deposits explained and unsecured loans to be opening balances from prior years. It also deleted the interest income addition, noting the nexus with interest expenditure, and the Section 68 addition for sundry creditors as they were opening balances, consequently deleting the Section 69C disallowance.

What were the issues?

The key issues were the applicability of Section 44AD to cash deposits and unsecured loans, the taxability of gross interest income, and the validity of additions under Section 68 for opening balances of sundry creditors and related interest disallowance under Section 69C.

Which sections of the Income-tax Act were involved?

Section 44AD,Section 68,Section 41,Section 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI MAKARAND VASANT MAHADEOKAR, HON’BLE

Pronounced: 22.09.2026

PER: SHRI SAKTIJIT DEY; V.P. :

This is an appeal by the assessee against order dated 28-10-2025 passed by National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2018-19. 2

2.

Ground No. 1, is general in nature hence, not pressed.

3.

In Ground No. 2, assessee has challenged addition of Rs.2,36,560/- under Section 44AD of the Income Tax Act, 1961 [in short, “the Act”].

4.

Briefly the facts are, the assessee is a resident individual. For

The order continues below.

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