BHUPENDRA MEENA,JAIPUR vs. ITO, WARD-1(1), JAIPUR, JAIPUR

ITA 918/JPR/2026Status: DisposedITAT Jaipur10 September 2026AY 2016-177 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's explanation for the cash deposits being out of earlier cash withdrawals was plausible and sufficiently explained. The Tribunal found no falsity in the assessee's reason for rotating funds to show bank transaction volume for finance purposes.

What were the facts?

The assessee deposited a significant amount of cash in his bank account. The Assessing Officer (AO) treated a portion of these deposits as unexplained income after considering business receipts and cash withdrawals from another account. The assessee argued that the deposits were out of earlier cash withdrawals, intended to show regular bank transactions for finance facility.

What were the issues?

Whether cash deposits in a bank account are sufficiently explained by prior cash withdrawals, especially when the assessee claims the purpose was to show regular transactions for bank finance.

Which sections of the Income-tax Act were involved?

Section 44AD,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “SMC” BENCH, JAIPUR

Hearing: 07.09.2026Pronounced: 10.09.2026

Per Annapurna Gupta, AM:- The present appeal has been filed by the assessee against the order passed by the National Faceless Appeal Centre, Delhi (hereinafter referred to as “Ld. CIT(A)”), dated 06.02.2026 under Section 250of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 Bhupendra Meena

2.

The grounds raised read as under:-

1.

The Ld. CIT(A), NFAC has erred on facts and in law in confirming the addition of Rs.40,99,325/- by treating the cash deposit in the bank account to this extent as unexplained income of assessee.

2.

The lower authorities have erred on facts and in law in computing the total income at Rs.47,71,135/- as against Rs.45,24,665/- by incorrectly taking the return

The order continues below.

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