LALAN KUMAR SHAW,BARDHAMAN vs. ITO, WARD 2(1),, BURDWAN

1 Subsequently, a paper book dated 20.03.2026 was filed by the assessee and the grounds of appeal have been revised and the revised grounds of appeal are as under: “REVISED GROUNDS OF APPEAL 1 For that confirmation of the entire cash deposits addition by the Ld. CIT(A) is bad in law and unjust. 2 For that purported appellate order highly vitiated with gross illegality with sheer recitals of the Ld. A.O observation in the entire appellate order without any independent finding about the veracity of every relevant documents and explanation furnished by the appellant both in assessment and appellate stage. 3 For that purported addition of differential cash deposits of Rs. 32,09,38,466 as alleged unexplained cash credits u/s 68 is based on non consideration of the cash sales made by the appellant to the regular customers despite furnishing before the both Ld. Lower authorities all clinching evidences including the complete cash book (recorded by the Ld. A.O. in assessment order and not disputed by the Ld. Appellate authority), sales, purchase ledgers and other documents including the audit report. 4 For that Ld. A.O. observation of non furnishing of regular customers name, address in the complete cash book furnished in assessment is fallacious being such inputs impermissible per accounting norms.

Brief facts of the case are that the assessee is an individual and had filed his return of income for AY 2022-23 showing total income of ₹7,30,340/-. The Assessing Officer (hereinafter referred to as Ld. 'AO') assessed the total income of the assessee at ₹30,71,81,134/- u/s 143(3) r.w.s. 144B of the Act after making addition of ₹30,64,50,794/- u/s 68 r.w.s. 115BBE of the Act. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A), who called for the remand report from the Ld. AO on 19.08.2025 as mentioned in para 4 of his order on page 2 but the same was not received and yet the appeal was decided in the absence of the remand report on the basis of the assessment order. The written submission filed by the assessee was considered and the appeal was dismissed by the Ld. CIT(A) by giving his finding as under: “6.3 Decision: I have carefully examined the assessment order and the written submissions filed by the assessee, it is noticed that the AO has clearly mentioned in the assessment order as follows:

Nevertheless, the assessee remained reluctant and did not respond to it by the stipulated time i.e. 20.03.2024. He filed reply on 25.03.2024 stating, "Please see the attached cash ledger for the period under consideration for your kind perusal. I apologize for the delay in submission of the required documents. Please let me know if any other document is needed. Cash book itself explains the source of cash deposit. Therefore, there is no reason to believe that source of cash deposit remained unexplained." alongwith cash book ledger mentioning therein Sr. No., Name of the party (without complete address, PAN, e-mail ID), Amount of Debit and Credit only. He has not mentioned any purpose of cash receipt, alongwith supporting documents i.e. confirmation from the concerned parties, copies of their ledger accounts, Bank Account Statements, ITRs and justification of transactions made with them for which cash has been received from them. As such, he has failed to explain the source of cash credits od Rs. 30,64,50, 794/-," In view of the above, the addition amounting to Rs.30,64,50,794/- made by the A.O. is being upheld. Hence, ground nos. 1 to 5 of appeal are dismissed.

In the result, the appeal is dismissed.”

Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal.

None appeared on behalf of the assessee and the appeal was heard with the assistance of the Ld. DR. The Ld. DR drew our attention to page 11 of the appeal order and stated that the assessee did not provide the details before the Ld. AO. However, the assessee had made written submission before the Ld. CIT(A) along with extracts of cash book and sales register/sales ledger in support of the claim that the cash sales had been made and the sale proceeds collected from the customers were deposited in the bank account of the assessee periodically a paper book has also been filed before us which was sent by post. The Bench was of the view that since proper representation could not be made before the Ld. CIT(A) nor apparently even in the course of the remand proceedings and the appeal was decided in the ITA No(s). 2677/KOL/2025 Assessment Year(s) 2022-23 Lalan Kumar Shaw. absence of the remand report, the assessee may be given one more opportunity to explain the source of cash deposit in the bank account by furnishing the required details before the Ld. AO as proper representation could not be made despite the sales register, purchase register, party-wise purchase register, and also the audit report, balance sheet, the profit and loss account before the Ld. AO and only a sum of ₹2,70,01,284/- was allowed on account of cash sales out of total sales of ₹33,34,52,078/- and the amount of ₹30,64,50,794/- was added even though the balance cash deposit was ₹32,09,38,466/- after excluding the cash sales. Thus, the order of the Ld. CIT(A) is hereby set aside and the issue is remanded to the Ld. AO to grant one more opportunity of being heard to the assessee and to consider the evidence filed before the Ld. CIT(A) as well as before him. The assessee shall furnish the required evidence in support of the claim that the cash deposited was out of the declared source/transactions of sales on the basis of which the income was declared. In case the assessee fails to furnish any satisfactory evidence, the Ld. AO shall be at liberty to draw adverse inference. Hence, the grounds of appeal are partly allowed for statistical purposes.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 20th May, 2026. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 20.05.2026 Bidhan (Sr. P.S.)

CIT(A)-NFAC, Delhi.

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order