ACIT, CIRCLE-3, LUCKNOW, LUCKNOW vs. PREM KUMAR KANDHARI, LUCKNOW

ITA 374/LKW/2024Status: DisposedITAT Lucknow29 June 2026AY 2017-189 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that rejecting the entire cash book based on a few entries out of the entire year's transactions is not legally tenable. The Tribunal further noted that the cash deposits pertained to business sales, which were not disputed by the AO, and taxing them again as unexplained credit would amount to double taxation.

What were the facts?

The Assessing Officer (AO) treated cash deposits of Rs. 4,02,37,560/- as unexplained money and added it to the assessee's income under Section 68. The AO rejected the assessee's cash book based on four entries not supported by cash bills, despite the deposits relating to business sales.

What were the issues?

Whether cash deposits from recorded business sales can be treated as unexplained cash credits under Section 68 solely due to minor discrepancies in cash book documentation. Whether rejecting the entire cash book based on a small sample size is justified.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 145(3),Section 44AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI NIKHIL CHOUDHARY

For Appellant: Shri Shaurya Shashwat Shukla, CIT

PER SUDHANSHU SRIVASTAVA, J.M.:

This appeal has been preferred by the Assessee against the order dated 14.05.2024, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2017-18. 2.0 The brief facts of the case are that the assessee was a Kachha Arathiya (Commission Agent) of fresh perishable fruits, etc. The assessee e-filed his return of income for the year under consideration on 06.11.2017, declaring a total income of Rs.36,32,390/-. The case of the assessee was selected for Limited Scrutiny under Computer-Assisted Scrutiny Selection (CASS) for the reason of “cash deposit during the year”. The ITA No.374/LKW/2024 Assessing Officer (AO) issued statutory Notices to the assessee. In response, the assessee through Income

The order continues below.

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