SMT. SUDESH KUMARI SHARMA,JAMMU vs. INCOME TAX OFFICER WARD-6, KATHUA

ITA 557/ASR/2025Status: DisposedITAT Amritsar23 July 2026AY 2017-183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the cash deposit of Rs. 4 lakhs was covered by the disclosed gross sales under Section 44AD. Since no addition was made regarding the original reasons for reopening, the standalone addition was deleted.

What were the facts?

The assessee's income was reassessed after information arose from a survey on a third party, indicating an investment in land. The assessment resulted in an addition of Rs. 4 lakhs for cash deposited in the bank.

What were the issues?

Whether the cash deposit in the bank can be considered as unexplained income when it is covered by the disclosed gross turnover under Section 44AD, and if additions can be made on issues unrelated to the original reasons for reopening.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 148,Section 142(1),Section 44AD,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. S. RIFAUR RAHMAN & SH. UDAYAN DAS GUPTA

For Appellant: CA (Virtual)
Hearing: 20.07.2026Pronounced: 23.07.2026

Per: Udayan Dasgupta, JM: This appeal is filed by the assessee against the order of ld. CIT(A), NFAC, Delhi, passed u/s 250 of the IT Act, 1961, dated 19.06.2025, which has emanated from the order of the AO, passed u/s 147 r.w.s.144B of the Act, dated 30.03.2022. 2. Brief facts of this case are that the assessee has filed her return of income disclosing an income of Rs. 6,12,147/- which consists of business profits of Rs. 1.32 lakhs, arising out of “Kirana Business” on a disclosed turnover of Rs. 16.50 lakhs (which works out to 8% of gross u/s 44AD of the Act), apart from interest income from bank.

3.

The assessment was reopened vide notice u/s 148 dated 31/03/2021, on the basis of information

The order continues below.

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