What did the Tribunal hold?

The Tribunal acknowledged the assessee's reconciliation statement and directed the Assessing Officer to verify it. If found correct, the addition should be reduced to Rs. 1,54,965/-.

The assessee, a grocery dealer, faced an addition of Rs. 14,74,483/- by the Assessing Officer due to discrepancies in sales, VAT, and GST. The assessee claimed that after considering cash-in-hand differences and bank redeposits, the addition should be reduced to Rs. 1,54,965/-.

What were the issues?

The primary issue was the correctness of the addition made by the Assessing Officer on account of sales, VAT, and GST, and whether the assessee's reconciliation provided sufficient grounds for reduction.

Uday Chand Jain, Saintala vs ITO | ITAT Cuttack 2026

Income Tax Appellate Tribunal, “HYBRID COURT AT CUTTACK”

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

For Appellant: Shri Manoj Kumar Sultania, AR

For Respondent: Shri Vijay Singh, Sr. DR

Hearing: 25.05.2026Pronounced: 25.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “HYBRID COURT AT CUTTACK” BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA No.482/CTK/2025 Assessment Year: 2018-19 Uday Chand Jain ITO, Balangir

C/o Fashion House, Shankar Vs Chowk, Saintala, Balangir, Odisha-767013. (PAN: ADWPJ5016G) (Appellant) (Respondent)

Assessee by : Shri Manoj Kumar Sultania, AR Revenue by : Shri Vijay Singh, Sr. DR Date of Hearing : 25.05.2026 Date of Pronouncement : 25.05.2026

ORDER PER BENCH: This is an appeal filed by the assessee against the order of the NFAC, Delhi [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2017- 18/10229227 dated 15.06.2025.

Shri Manoj Kumar Sultania, AR represented on behalf of the assessee and Shri Vijay Singh, Sr. DR represented on behalf of the revenue.

ITA No.482/CTK/2025 3. It was submitted by the ld. AR that the assessee is a dealer of grocery items. It was the submission that certain discrepancies had been pointed out by the Assessing Officer in the course of assessment and an addition to an extent of Rs.14,74,483/- had been made. It was the submission that this addition was made on account of non-consideration of VAT and GST in respect of sales. It was the submission that the total deposits in the bank account of the assessee were Rs.92,43,670/- and the sales were shown at Rs.77,69,187/-. It was the submission that sales did not include VAT and GST which was to the extent of Rs.9,46,341/-. It was further submitted that the Assessing Officer while considering the addition did not consider the difference between opening and closing cash- in-hand of Rs.2,26,676/-. It was further submitted that the Assessing Officer did not consider the redeposits of the cash withdrawals from the bank account to the extent of Rs.1,46,500/-. It was the submission that if these adjustments are done then the addition would reduce to Rs.1,54,965/-. The ld. AR has filed a reconciliation statement which reads as follows:

ITA No.482/CTK/2025

3.1 It was prayed that the addition as made by the Assessing Officer and confirmed by the ld. CIT(A) may be reduced to Rs.1,54,965/-.

In reply, the ld. Sr. DR submitted that the assessee has filed the reconciliation statement and the same may be sent to the Assessing Officer for verification.

We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessee has filed reconciliation statement in respect of total credits in the bank account and total sales

ITA No.482/CTK/2025 considering the VAT and GST and also the difference between opening and closing cash in hand and redeposits of cash withdrawn from bank. This clearly gives picture that the addition is liable to be made only to an extent of Rs.1,54,965/-. However, as the reconciliation statement has now been produced before the Tribunal and in the interest of justice, this reconciliation statement is restored to the file of the Assessing Officer for verification. If after the verification, the reconciliation is found to be correct then the addition as made by the Assessing Officer be reduced to Rs.1,54,965/-. With the above direction, the issues in this appeal are restored to the file of the Assessing Officer for reverification.

In the result, the appeal of the assessee is partly allowed for statistical purposes.

Cuttack, the 25th May, 2026.

Sd/- Sd/- [Rajesh Kumar] [George Mathan] लेखा सदस्य/Accountant Member न्याययक सदस्य/Judicial Member

Dated: 25.05.2026. RS

Copy of the order forwarded to: 1. Appellant - 2. Respondent – 3. CIT(A)- 4. CIT- , 5. CIT(DR),

ITA No.482/CTK/2025

//True copy// By order Assistant Registrar

UDAY CHAND JAIN,SAINTALA vs. INCOME TAX OFFICER, BOLANGIR

What did the Tribunal hold?

What were the facts?

What were the issues?

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