MUKESHBHAI LAVJIBHAI MANGUKIYA,SURAT vs. ACIT CIRCLE 1(3), SURAT

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT “DB” BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 1093/SRT/2025 (Assessment Year:2017-18) Mukeshbhai Javjibhai Assistant Commissioner Mangukiya Vs. of Income Tax 25, Deep Darshan Soc. Opp. Circle-1(3), Surat Pruthvi Raw House, New Rander Road, Surat, Gujarat - 395009 PAN : AGWPM3593L (Appellant) .. (Respondent) Appellant by : Shri P M Jagasheth, CA Respondent by: Shri Ashish KUmar, Sr. D.R. Date of Hearing 21.01.2026 Date of Pronouncement 07.04.2026 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:-

This is an appeal filed by the assessee against the order dated 28-08-2025 passed by National Faceless Appeal Centre (NFAC), Delhi for Assessment Year 2017-18. 2. The assessee has raised following grounds: “1. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in rejecting cash book and books of account u/s. 145 of the Income Tax Act 1961. 2. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs.26,09,499/- on account of cash deposits during demonetization period in bank account treated

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as alleged unexplained money u/s.69A of the Income Tax Act, 1961. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has not offered adequate opportunities to hear the case, hence the case may please be set aside and restored back to the CIT(A) or AO for sake of interest of natural justice. 4. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in initiating penalty proceedings u/s. 271AAC of the Income Tax Act, 1961. 5. It is therefore prayed that the above addition may please be deleted as learned members of the tribunal may deem it proper. 6. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal.” 3. The AO made addition of Rs.26.09 Lakhs being unaccounted cash deposits, the total cash deposits found during the demonetization period was Rs.60.33 Lakhs.

SR. NO. PARTICULARS AMOUNT PARTICULARS 1 RETURN FILED FOR A.Y. 2015-16 10,77,410 RETURNED ON 30.03.2016 INCOME 2 RETURN FILED FOR A.Y. 2016-17 36,75,320 RETURNED ON 27.03.2017 INCOME 3 OPENING CASH AS ON 01.04.2016 40,39,497 ACCEPTED BY AO 4 CASH WITHDRAWAL BETWEEN 30,50,000 01.04.2026 TO 31.10.2016 5 CASH DEPOSITED DURING 60,33,500 DEMONETISATION

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Since, the returned income and the opening cash for the two years and the cash withdrawals had not been disputed, we hold that the cash deposits have been duly explained and no addition is called for.

Order is pronounced in the open Court on 07.04.2026

Sd/- Sd/- (DR. B.R.R. KUMAR) (SUCHITRA KAMBLE) VICE-PRESIDENT JUDICIAL MEMBER Surat; Dated 07/04/2026 SKSinha, Sr.PS True Copy आदेशकी�ितिलिपअ�ेिषत/Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. ��थ�/ The Respondent. 2. 3. संबंिधतआयकरआयु�/ Concerned CIT ( ) 4. आयकरआयु� अपील / The CIT(A)- , , 5. िवभागीय�ितिनिध आयकरअपीलीयअिधकरण /DR,ITAT, Surat, / Guard file. 6. गाड�फाईल आदेशानुसार/ BY ORDER, TRUE COPY सहायकपंजीकार (Asstt. Registrar) आयकरअपीलीयअिधकरण, ITAT, Surat