AMBASSADOR HOUSE,KOLKATA vs. I.T.O., WARD - 40(3), KOLKATA

ITA 1785/KOL/2025Status: DisposedITAT Kolkata21 September 2026AY 2017-20186 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had established the availability of cash in hand, and the Assessing Officer did not provide contrary evidence to show how the cash was spent. Therefore, the addition made by the Assessing Officer was deleted.

What were the facts?

The assessee deposited Rs. 35,67,000/- in specified bank notes during demonetisation, claiming it was from cash in hand. The Assessing Officer found this unbelievable given the business turnover and cash withdrawals, treating it as unexplained cash credit.

What were the issues?

Whether the cash deposited during demonetisation, claimed to be from opening cash balance, constitutes unexplained cash credit under Section 68 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH,

Before: SHRI YOGESH KUMAR U.S. & SHRI RAKESH MISHRA

For Appellant: Shri Miraj D. Shah, AR
For Respondent: Shri Sumit Purkaystha, Sr. DR
Hearing: 13.08.2026Pronounced: 21.09.2026

PER YOGESH KUMAR U.S., JUDICIAL MEMBER:

This Appeal is filed by the Assessee against the order of the NFAC, Delhi (‘Ld. CIT(A)’ for short) dated 17.07.2025, passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the Assessment Year 2017-18. 2. Brief facts of the case are that, Assessee filed return of income declaring NIL income for Assessment Year 2017-18. The case of the Assessee was selected for scrutiny under CASS highlighting the issue of cash deposited in the bank account during the period of demonetisation. The Assessing Officer found that Assessee deposited cash amounting to Rs.35,67,000/- in specified bank notes during the Ambassador House; A.Y: 2017-18 period of demonetisation. It is the case of the Assessee

The order continues below.

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