ASHWINI ASHOK PAWAR,MUMBAI vs. INCOME TAX OFFICER, VASHI, NAVI MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H(SMC)” MUMBAI

BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI KAVITHA RAJAGOPAL (JUDICIAL MEMBER)

ITA No. 1168/MUM/2026 Assessment Year: 2017-18

Ashwini Ashok Pawar, Income Tax Officer, IT Office, 118, Acharya Shopping Vashi Railway Building, Navi Vs. Complex, Dr. CG Gidwani Mumbai, Mumbai – 400703, Road, Chembur, Mumbai – Maharashtra. 400074, Maharashtra. PAN NO. APBPP 7409 J Appellant Respondent

Assessee by : Shri Abhishek Avhad Revenue by : Shri Pravin Salumkhe (Sr. DR)

Date of Hearing : 13/05/2026 : 22/05/2026 Date of pronouncement ORDER PER OM PRAKASH KANT, AM

The present appeal by the assessee is directed against order dated 20.11.2025 passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“Ld. CIT(A)”] for Assessment Year 2017–18, whereby the addition of ₹4,95,276/- made under Section 68 of the Income-tax Act, 1961 (“the Act”) has

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been sustained. The grounds raised by the assessee are reproduced been sustained. The grounds raised by the assessee are reproduced been sustained. The grounds raised by the assessee are reproduced as under:

“1. The learned Commissioner of Income 1. The learned Commissioner of Income-tax (Appeals) erred in law and on facts tax (Appeals) erred in law and on facts in confirming the addition of in confirming the addition of ₹4,95,276/-under section 68 of the Income under section 68 of the Income-tax Act, 1961, treating the difference between sales and cash deposits as unexplained 1961, treating the difference between sales and cash deposits as unexplained 1961, treating the difference between sales and cash deposits as unexplained cash credit. 2. The authorities below failed to appreciate that the appellant is engaged in a 2. The authorities below failed to appreciate that the appellant is engaged in a 2. The authorities below failed to appreciate that the appellant is engaged in a cash-intensive business of petrol and intensive business of petrol and diesel retailing and that cash deposits in diesel retailing and that cash deposits in the bank were made out of regular business receipts, available cash balance, and the bank were made out of regular business receipts, available cash balance, and the bank were made out of regular business receipts, available cash balance, and withdrawals, and not from any unexplained source. withdrawals, and not from any unexplained source. 3. The addition has been made merely on the basis of a month-wise comparison 3. The addition has been made merely on the basis of a month 3. The addition has been made merely on the basis of a month of sales and cash deposits for two isolated months, ignoring the concept of cash ales and cash deposits for two isolated months, ignoring the concept of cash ales and cash deposits for two isolated months, ignoring the concept of cash flow, opening cash balance, cumulative cash availability, and the overall turnover flow, opening cash balance, cumulative cash availability, and the overall turnover flow, opening cash balance, cumulative cash availability, and the overall turnover of the business, which approach is arbitrary and unsustainable in law. of the business, which approach is arbitrary and unsustainable in law. of the business, which approach is arbitrary and unsustainable in law. 4. The learned CIT(A) err 4. The learned CIT(A) erred in confirming the addition under section 68 without ed in confirming the addition under section 68 without establishing that the cash deposits represented any income from an undisclosed establishing that the cash deposits represented any income from an undisclosed establishing that the cash deposits represented any income from an undisclosed or non-business source, especially when the business receipts themselves were business source, especially when the business receipts themselves were business source, especially when the business receipts themselves were not rejected.”

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2.1 During the reassessment proceedings, the Assessing Officer During the reassessment proceedings, the Assessing Officer During the reassessment proceedings, the Assessing Officer issued notices under Section 142(1) on multiple occasions dated issued notices under Section 142(1) on multiple occasions dated issued notices under Section 142(1) on multiple occasions dated 12.01.2023, 07.03.2023 and 16.03.2023, calling upon the assessee 12.01.2023, 07.03.2023 and 16.03.2023, calling upon the assessee 12.01.2023, 07.03.2023 and 16.03.2023, calling upon the assessee to furnish, inter alia, books of account, cash book, ledger, vouchers, , books of account, cash book, ledger, vouchers, , books of account, cash book, ledger, vouchers, bank statements, purchase register and sales register and bank statements, purchase register and sales register and bank statements, purchase register and sales register and explanation for the demonetisation explanation for the demonetisation-period cash deposits. Though period cash deposits. Though certain details such as computation of income, bank statements certain details such as computation of income, bank statements certain details such as computation of income, bank statements and month-wise sales and deposit summaries were furnished, the wise sales and deposit summaries were furnished, the wise sales and deposit summaries were furnished, the assessee admittedly failed to produce the primary books of account, assessee admittedly failed to produce the primary books of account, assessee admittedly failed to produce the primary books of account, particularly the cash book, despite having disclosed maintenance of particularly the cash book, despite having disclosed maintenance particularly the cash book, despite having disclosed maintenance those books of account those books of account in the audit report. The Assessing Officer The Assessing Officer, while examining the source of the cash deposit of Rs. 61,59,645/-, while examining the source of the cash deposit of Rs. 61,59,645/ while examining the source of the cash deposit of Rs. 61,59,645/ which was the basis of the reopening of the assessment on the which was the basis of the reopening of the assessment on the which was the basis of the reopening of the assessment on the basis of the information received from Insight Portal, observed that basis of the information received from Insight Portal, observed that basis of the information received from Insight Portal, observed that cash deposits in the month of August 2016 and November 2016 cash deposits in the month of August 2016 and November 2 cash deposits in the month of August 2016 and November 2 was more than actual sales. The details of which are reproduced as was more than actual sales. The details of which are reproduced as was more than actual sales. The details of which are reproduced as under: Month Month Sales Cash Deposits Differences Differences August – 2016 2016 17,24,594 18,32,990 1,08,396 November - 2016 2016 37,64,240 41,51,120 3,86,880 Total 4,95,376

2.2 In view of cash deposits in the months of August 2016 and cash deposits in the months of August 2016 and cash deposits in the months of August 2016 and November 2016 exceeded the corresponding sales disclosed for November 2016 exceeded the corresponding sales disclosed for November 2016 exceeded the corresponding sales disclosed for gate difference of ₹4,95,276/-, a those months, resulting in an aggre those months, resulting in an aggregate difference of final show-cause notice was issued on 13.04.2023 seeking cause notice was issued on 13.04.2023 seeking cause notice was issued on 13.04.2023 seeking

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clarification on the excess deposits. However, the assessee did not excess deposits. However, the assessee did not excess deposits. However, the assessee did not respond. In the absence of a satisfactory explanation and respond. In the absence of a satisfactory explanation and respond. In the absence of a satisfactory explanation and supporting documentary evidence, the AO treated the excess cash supporting documentary evidence, the AO treated the excess cash supporting documentary evidence, the AO treated the excess cash deposits of Rs. 4,95,276/ deposits of Rs. 4,95,276/- as unexplained cash credit u/s 68, and as unexplained cash credit u/s 68, and concluded the reasses concluded the reassessment u/s 143(3) r.w.s. 147 vide order dated sment u/s 143(3) r.w.s. 147 vide order dated 28.04.2023, determining the total income at Rs. 14,64,050/-. 28.04.2023, determining the total income at Rs. 14,64,050/ 28.04.2023, determining the total income at Rs. 14,64,050/

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during appellate proceedings. The Ld. CIT(A) further noticed during appellate proceedings. The Ld. CIT(A) further noticed during appellate proceedings. The Ld. CIT(A) further noticed inconsistencies between the cash balances claimed by the assessee inconsistencies between the cash balances claimed by the assessee inconsistencies between the cash balances claimed by the assessee and the figures reflected in the audited balanc and the figures reflected in the audited balance sheet, thereby e sheet, thereby casting serious doubt on the credibility of the reconciliation casting serious doubt on the credibility of the reconciliation casting serious doubt on the credibility of the reconciliation statement furnished by the assessee. statement furnished by the assessee. The relevant finding of relevant finding of learned CIT(A), is reproduced is reproduced as under:

8.5.1 Vide this ground of appeal, the appellant has challenged the addition Vide this ground of appeal, the appellant has challenged the addition of Rs. Vide this ground of appeal, the appellant has challenged the addition 4,95,276/- made by the AO u/s 68 of the Act. The appellant contends that the AO made by the AO u/s 68 of the Act. The appellant contends that the AO made by the AO u/s 68 of the Act. The appellant contends that the AO compared cash deposits with fuel sales for only two months August 2016 and compared cash deposits with fuel sales for only two months August 2016 and compared cash deposits with fuel sales for only two months August 2016 and November 2016 while ignoring indirect cash income of Rs. 4,02,255/-, monthly November 2016 while ignoring indirect cash income of Rs. 4,02,255/ November 2016 while ignoring indirect cash income of Rs. 4,02,255/ opening cash balances, and cash withdrawals of Rs. 80,000/ ances, and cash withdrawals of Rs. 80,000/- and Rs. 50,000/- ances, and cash withdrawals of Rs. 80,000/ made in August 2016. It is the appellant's submission that the AO considered made in August 2016. It is the appellant's submission that the AO considered made in August 2016. It is the appellant's submission that the AO considered only fuel sales and not total receipts of the business, which include ancillary cash only fuel sales and not total receipts of the business, which include ancillary cash only fuel sales and not total receipts of the business, which include ancillary cash income from puncture repair, air income from puncture repair, air refill charges, and sale of spares. The appellant refill charges, and sale of spares. The appellant has also submitted month has also submitted month-wise summaries to show that in several months, sales wise summaries to show that in several months, sales exceeded cash deposits, resulting in cumulative cash availability which explains exceeded cash deposits, resulting in cumulative cash availability which explains exceeded cash deposits, resulting in cumulative cash availability which explains the deposits made during November 2016. the deposits made during November 2016.

8.5.2 On perusal of the assessment order, it is seen that the AO has recorded On perusal of the assessment order, it is seen that the AO has recorded On perusal of the assessment order, it is seen that the AO has recorded that the assessee claimed to maintain a cash book, ledger, vouchers, purchase that the assessee claimed to maintain a cash book, ledger, vouchers, purchase that the assessee claimed to maintain a cash book, ledger, vouchers, purchase register and sales register, but none of these primary books of account were register and sales register, but none of these primary books of account were register and sales register, but none of these primary books of account were produced during assessment. T produced during assessment. The AO repeatedly requested for details vide he AO repeatedly requested for details vide notices u/s 142(1) dated 12.01.2023, 07.03.2023 and 16.03.2023, and the notices u/s 142(1) dated 12.01.2023, 07.03.2023 and 16.03.2023, and the notices u/s 142(1) dated 12.01.2023, 07.03.2023 and 16.03.2023, and the assessee furnished only partial details. The AO requested that the assessee assessee furnished only partial details. The AO requested that the assessee assessee furnished only partial details. The AO requested that the assessee furnish complete cash book and explain the source of deposits in all bank furnish complete cash book and explain the source of deposits in furnish complete cash book and explain the source of deposits in accounts but the same was not submitted. The AO has noted that in August accounts but the same was not submitted. The AO has noted that in August accounts but the same was not submitted. The AO has noted that in August 2016, cash deposits of Rs. 18,32,990/ 2016, cash deposits of Rs. 18,32,990/- exceeded the declared fuel sales of Rs. exceeded the declared fuel sales of Rs. 17,24,594/-, resulting in a difference of Rs. 1,08,396/ , resulting in a difference of Rs. 1,08,396/-. Similarly, in November . Similarly, in November 2016, cash deposits of Rs. 41,51,120/ posits of Rs. 41,51,120/- exceeded the fuel sales of Rs. exceeded the fuel sales of Rs. 37,64,240/-, resulting in a difference of Rs. 3,86,880/ , resulting in a difference of Rs. 3,86,880/-. The aggregate difference . The aggregate difference of Rs. 4,95,276/- was treated as unexplained. During assessment, the assessee was treated as unexplained. During assessment, the assessee was treated as unexplained. During assessment, the assessee did not file any documentary evidence did not file any documentary evidence to reconcile these specific differences, nor to reconcile these specific differences, nor was any cash book produced to show the availability of opening cash balance, was any cash book produced to show the availability of opening cash balance, was any cash book produced to show the availability of opening cash balance, cumulative cash surplus, or month wise generation of other income or utilisation cumulative cash surplus, or month wise generation of other income or utilisation cumulative cash surplus, or month wise generation of other income or utilisation of indirect income.

8.5.3 During the appeal proceedi During the appeal proceedings, the appellant argued that cash ngs, the appellant argued that cash withdrawals of Rs. 1,30,000/ withdrawals of Rs. 1,30,000/- in August 2016 should be reduced while in August 2016 should be reduced while computing net deposit, and that indirect income of Rs. 4,02,255/- should have computing net deposit, and that indirect income of Rs. 4,02,255/ computing net deposit, and that indirect income of Rs. 4,02,255/

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been considered in determining available cash. However, these contentions could been considered in determining available cash. However, these contentions been considered in determining available cash. However, these contentions not be verified in absence of the cash book, daily cash register duly supported by not be verified in absence of the cash book, daily cash register duly supported by not be verified in absence of the cash book, daily cash register duly supported by evidence. The appellant submitted only summary statements prepared later and evidence. The appellant submitted only summary statements prepared later and evidence. The appellant submitted only summary statements prepared later and did not produce contemporaneous records maintained during the year. The AO did not produce contemporaneous records maintained during the year. The AO did not produce contemporaneous records maintained during the year. The AO requested the primary books but these were never furnished. primary books but these were never furnished.

8.5.4 Further, it is verified from the Bank of India A/c No. 120320100000097 (in Further, it is verified from the Bank of India A/c No. 120320100000097 (in Further, it is verified from the Bank of India A/c No. 120320100000097 (in the name of Ashwini Automobile) that there are credits of Rs. 22,52,424/- the name of Ashwini Automobile) that there are credits of Rs. 22,52,424/ the name of Ashwini Automobile) that there are credits of Rs. 22,52,424/ through bank transfers during the year. Further, it is through bank transfers during the year. Further, it is seen from the Central Bank seen from the Central Bank of India A/c No. 3355160389 that there are bank transfers amounting to Rs. of India A/c No. 3355160389 that there are bank transfers amounting to Rs. of India A/c No. 3355160389 that there are bank transfers amounting to Rs. 46,228/- during the year under consideration. However, as per the assessee's during the year under consideration. However, as per the assessee's during the year under consideration. However, as per the assessee's own books and audit report, the total turnover is Rs. 4,32,30,422/- and other own books and audit report, the total turnover is Rs. 4,32,30,422/ own books and audit report, the total turnover is Rs. 4,32,30,422/ income of Rs. 4,02,255 totaling to Rs. 4,36,32,677/ income of Rs. 4,02,255 totaling to Rs. 4,36,32,677/-, out of which Rs. , out of which Rs. 4,12,24,474/- has been shown as cash sales of fuel and other income of Rs. has been shown as cash sales of fuel and other income of Rs. has been shown as cash sales of fuel and other income of Rs. 2,34,956 (upto October, 2016). This implies that the balance Rs. 21,73,247/- 2,34,956 (upto October, 2016). This implies that the balance Rs. 21,73,247/ 2,34,956 (upto October, 2016). This implies that the balance Rs. 21,73,247/ should relate to bank transfer should relate to bank transfer receipts in books of appellant. Against this, the receipts in books of appellant. Against this, the bank statements reflects bank transfer credits of Rs. 22,98,652/-, indicating a bank statements reflects bank transfer credits of Rs. 22,98,652/ bank statements reflects bank transfer credits of Rs. 22,98,652/ mismatch to the extent of Rs. 1,25,405/ mismatch to the extent of Rs. 1,25,405/- between books and bank statements. between books and bank statements. The appellant has not produced the cash book to re The appellant has not produced the cash book to reconcile this difference or to concile this difference or to establish month-wise cash balances and availability of cash on the dates of wise cash balances and availability of cash on the dates of wise cash balances and availability of cash on the dates of deposits. The difference in bank transfer credits (Rs. 22,98,652 vs Rs. 21,73,247) deposits. The difference in bank transfer credits (Rs. 22,98,652 vs Rs. 21,73,247) deposits. The difference in bank transfer credits (Rs. 22,98,652 vs Rs. 21,73,247) further weakens the reliability of the appellant's books and demonstrates that further weakens the reliability of the appellant's books and demons further weakens the reliability of the appellant's books and demons reconciliation is incomplete. The appellant's claim that "overall sales exceed reconciliation is incomplete. The appellant's claim that "overall sales exceed reconciliation is incomplete. The appellant's claim that "overall sales exceed deposits for most months" cannot be accepted unless supported by the cash book deposits for most months" cannot be accepted unless supported by the cash book deposits for most months" cannot be accepted unless supported by the cash book showing daily opening and closing cash balance. No such evidence has been showing daily opening and closing cash balance. No such evidence has been showing daily opening and closing cash balance. No such evidence has been furnished. Assertions of cumulative cash surplus are unsubstantiated in the ssertions of cumulative cash surplus are unsubstantiated in the ssertions of cumulative cash surplus are unsubstantiated in the absence of primary books, which the AO repeatedly sought. absence of primary books, which the AO repeatedly sought.

8.5.5 The appellant claimed that cash withdrawals of Rs. 1,30,000/ The appellant claimed that cash withdrawals of Rs. 1,30,000/ The appellant claimed that cash withdrawals of Rs. 1,30,000/- made during August 2016 were available as cash during August 2016 were available as cash-in-hand for explai hand for explaining the cash deposits. However, it is seen from the Central Bank of India A/c No. 3355160389 deposits. However, it is seen from the Central Bank of India A/c No. 3355160389 deposits. However, it is seen from the Central Bank of India A/c No. 3355160389 statement that the appellant has paid Rs. 80,000/ statement that the appellant has paid Rs. 80,000/- on 16.08.2016 to "VIJAY S on 16.08.2016 to "VIJAY S SAKP" and Rs. 50,000/ SAKP" and Rs. 50,000/- on 19.08.2016 to "VIJAY SHANTA" through cheque on 19.08.2016 to "VIJAY SHANTA" through cheque withdrawals. The narration in the bank statement clearly establishes that these e narration in the bank statement clearly establishes that these e narration in the bank statement clearly establishes that these amounts were paid to identified parties and do not represent cash withdrawn amounts were paid to identified parties and do not represent cash withdrawn amounts were paid to identified parties and do not represent cash withdrawn and available for business purposes. Accordingly, the appellant's contention that and available for business purposes. Accordingly, the appellant's contention that and available for business purposes. Accordingly, the appellant's contention that the said withdrawals contributed the said withdrawals contributed to the cash balance is not supported by the to the cash balance is not supported by the bank records.

8.5.6 In a cash-intensive business such as petrol retail, the cash book is the most intensive business such as petrol retail, the cash book is the most intensive business such as petrol retail, the cash book is the most crucial record to substantiate that the cash deposited represents accumulated crucial record to substantiate that the cash deposited represents accumulated crucial record to substantiate that the cash deposited represents accumulated business receipts and not unexplained money. Since the appellant has not business receipts and not unexplained money. Since the appellant has not business receipts and not unexplained money. Since the appellant has not produced the cash book, vou produced the cash book, vouchers, or any primary record of cash movement, the chers, or any primary record of cash movement, the source of excess cash deposits in August 2016 and November 2016 remains source of excess cash deposits in August 2016 and November 2016 remains source of excess cash deposits in August 2016 and November 2016 remains

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unverified. Though appellant has furnished month wise break up other income unverified. Though appellant has furnished month wise break up other income unverified. Though appellant has furnished month wise break up other income Rs. 4,02,255/- to close the gap between cash deposits vis to close the gap between cash deposits vis a vis cash sale, to close the gap between cash deposits vis evidence for such break up of 'other income' in the form of either cash book or evidence for such break up of 'other income' in the form of either cash book or evidence for such break up of 'other income' in the form of either cash book or invoices raised to support such income has not been furnished to rely on invoices raised to support such income has not been furnished to rely on invoices raised to support such income has not been furnished to rely on correctness of break up given. Break up of cash sales, other income given by correctness of break up given. Break up of cash sales, other income given by correctness of break up given. Break up of cash sales, other income given by appellant is as under: t is as under: M/s Ashwini Automobiles Monthly sales, indirect income and net cash deposits Monthly sales, indirect income and net cash deposits Monthly sales, indirect income and net cash deposits Month Sales Amount Indirect Net Cash Monthly Monthly Cummulativ Income deposited in Cash Cash e Cash BOI and CBI Balance Balance Balance 4 = (1+2-3) Apr-16 4,404,550.32 29,898.00 3,919,760.00 514,688 514,688 514,688 May-16 5,924,000.36 36,322.00 5,627,864.00 332,458 332,458 847,147 Jun-16 4,040,539.51 32,017.00 3,619,080.00 453,477 453,477 1,300,623 Jul-16 2,077,100.27 33,384.00 1,884,140.00 226,344 226,344 1,526,967 Aug-16 1,724,594.28 32,949.00 1,702,990.00 54,553 54,553 1,581,521 Sep-16 2,503,921.12 34,944.00 2,382,620.00 156,245 156,245 1,737,766 Oct-16 2,630,649.89 35,442.00 2,448,135.00 217,957 217,957 1,955,723 Nov-16 3,764,240.72 32,055.00 4,151,120.00 -354,824 354,824 1,600,898 Dec-16 3,803,989.97 34,735.00 3,237,225.00 601,500 601,500 2,202,398 Jan-17 4,056,316.50 35,247.00 3,690,540.00 401,024 401,024 2,603,422 Feb-17 4,114,943.46 30,919.00 3,711,960.00 433,902 433,902 3,037,324 Mar-17 4,185,575.18 34,343.00 4,374,040.00 -154,122 154,122 2,883,203 Total 43,230,421.58 402,255.00 40,749,474.00 2,883,203 2,883,203 Note : The cash 8.5.7 As per above table month end cash balance in books of appellant for As per above table month end cash balance in books of appellant for As per above table month end cash balance in books of appellant for March, 2017 is Rs 28,83,203/ Rs 28,83,203/- whereas in audited Balance sheet as on 31 whereas in audited Balance sheet as on 31-03- 2017 shows cash in hand of Rs 11,801/- only. The Appellant has not offered any 2017 shows cash in hand of only. The Appellant has not offered any explanation for discrepancy between cash balance arrived as above and cash in for discrepancy between cash balance arrived as above and cash in for discrepancy between cash balance arrived as above and cash in hand admitted in audited balance sheet. It appears that it is the contention of hand admitted in audited balance sheet. It appears that it is the contention of hand admitted in audited balance sheet. It appears that it is the contention of appellant that absolutely no cash expenditure has been incurred during the year appellant that absolutely no cash expenditure has been incurred during the year appellant that absolutely no cash expenditure has been incurred during the year as cash balance at the end of as cash balance at the end of month is taken as opening cash balance for next month is taken as opening cash balance for next month. In the absence of reconciliation between cash balance as per above table month. In the absence of reconciliation between cash balance as per above table month. In the absence of reconciliation between cash balance as per above table vis a vis cash in hand as per Balance sheet, above table can't be treated as vis a vis cash in hand as per Balance sheet, above table can't be treated as vis a vis cash in hand as per Balance sheet, above table can't be treated as

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credible to explain cash deposits. The mismatch bet credible to explain cash deposits. The mismatch between bank transfer credits ween bank transfer credits recorded in books and those reflected in the bank statement further raises doubts recorded in books and those reflected in the bank statement further raises doubts recorded in books and those reflected in the bank statement further raises doubts about the completeness and correctness of the accounting records. The about the completeness and correctness of the accounting records. The about the completeness and correctness of the accounting records. The appellant's explanations based on later appellant's explanations based on later-prepared summaries do not discharge t prepared summaries do not discharge the onus cast under section 68 to prove the nature and source of the credited onus cast under section 68 to prove the nature and source of the credited onus cast under section 68 to prove the nature and source of the credited amounts. 8.5.8 In view of the above facts and in the absence of contemporaneous books of In view of the above facts and in the absence of contemporaneous books of In view of the above facts and in the absence of contemporaneous books of account and proper reconciliation of bank deposits vis account and proper reconciliation of bank deposits vis-à-vis books, I find that the vis books, I find that the assessee has failed to substantiate the source of excess cash deposits of Rs. ee has failed to substantiate the source of excess cash deposits of Rs. ee has failed to substantiate the source of excess cash deposits of Rs. 4,95,276/-. The AO's action in treating the difference as unexplained cash credit . The AO's action in treating the difference as unexplained cash credit . The AO's action in treating the difference as unexplained cash credit u/s 68 is justified. Accordingly, the addition of Rs. 4,95,276/- made u/s 68 is u/s 68 is justified. Accordingly, the addition of Rs. 4,95,276/ u/s 68 is justified. Accordingly, the addition of Rs. 4,95,276/ confirmed. Ground of Appeal No. 2 is dismissed.” confirmed. Ground of A

5.1 The learned counsel further submitted that the cash deposits The learned counsel further submitted that the cash deposits The learned counsel further submitted that the cash deposits during the relevant period were sourced not merely from the current during the relevant period were sourced not merely from the current during the relevant period were sourced not merely from the current month’s collections but also from opening cash balances carried month’s collections but also from opening cash balances carried month’s collections but also from opening cash balances carried

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forward from preceding months, all of which were duly recorded in eding months, all of which were duly recorded in eding months, all of which were duly recorded in the regularly maintained cash book. However, it was fairly conceded the regularly maintained cash book. However, it was fairly conceded the regularly maintained cash book. However, it was fairly conceded that the said cash book could not be produced before the lower that the said cash book could not be produced before the lower that the said cash book could not be produced before the lower authorities. The learned counsel nevertheless undertook before the authorities. The learned counsel nevertheless undertook before the authorities. The learned counsel nevertheless undertook before the Bench that the assessee is ready and willing to produce the t the assessee is ready and willing to produce the t the assessee is ready and willing to produce the complete cash book for the entire financial year, along with complete cash book for the entire financial year, along with complete cash book for the entire financial year, along with supporting vouchers and records, so as to demonstrate the supporting vouchers and records, so as to demonstrate the supporting vouchers and records, so as to demonstrate the availability of sufficient cash balance corresponding to the deposits availability of sufficient cash balance corresponding to the deposits availability of sufficient cash balance corresponding to the deposits made during August 2016 and November 2016. st 2016 and November 2016.

6.1 In our considered opini In our considered opinion, the ends of substantial justice would on, the ends of substantial justice would be adequately served if the assessee is afforded one final be adequately served if the assessee is afforded one final be adequately served if the assessee is afforded one final opportunity to substantiate its explanation by producing the opportunity to substantiate its explanation by producing the opportunity to substantiate its explanation by producing the

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original cash book and supporting documentary evidence before the original cash book and supporting documentary evidence before the original cash book and supporting documentary evidence before the AO. The matter, therefore, d . The matter, therefore, deserves to be restored to the file of the eserves to be restored to the file of the Assessing Officer for a limited verification of the assessee’s claim Assessing Officer for a limited verification of the assessee’s claim Assessing Officer for a limited verification of the assessee’s claim regarding availability of cash balance corresponding to the regarding availability of cash balance corresponding to the regarding availability of cash balance corresponding to the impugned deposits. The assessee shall produce the original cash impugned deposits. The assessee shall produce the original cash impugned deposits. The assessee shall produce the original cash book for the entire relevant period together with such vouchers and elevant period together with such vouchers and elevant period together with such vouchers and supporting evidence as may be required by the Assessing Officer. supporting evidence as may be required by the Assessing Officer. supporting evidence as may be required by the Assessing Officer. The Assessing Officer shall thereafter examine the claim in The Assessing Officer shall thereafter examine the claim in The Assessing Officer shall thereafter examine the claim in accordance with law and pass a speaking order after affording accordance with law and pass a speaking order after affording accordance with law and pass a speaking order after affording adequate opportunity o adequate opportunity of hearing to the assessee.

6.2 Accordingly, the impugned order of the Ld. CIT(A) is set aside Accordingly, the impugned order of the Ld. CIT(A) is set aside Accordingly, the impugned order of the Ld. CIT(A) is set aside for the limited purpose indicated hereinabove and the matter is for the limited purpose indicated hereinabove and the matter is for the limited purpose indicated hereinabove and the matter is restored to the file of the Assessing Officer. The grounds raised by restored to the file of the Assessing Officer. The grounds raised by restored to the file of the Assessing Officer. The grounds raised by the assessee are treated as the assessee are treated as allowed for statistical purposes. allowed for statistical purposes.

Sd/- Sd/- (KAVITHA RAJAGOPAL KAVITHA RAJAGOPAL) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 22/05/2026 M. Ranganath Vittal , Sr. P.S. M. Ranganath Vittal , Sr. P.S.

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Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.

BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai