TARUN MITTAL,FAIZABAD vs. DCIT, FAIZABAD

ITA 715/LKW/2026Status: DisposedITAT Lucknow31 August 2026AY 2023-249 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the Section 68 issue to the AO for fresh consideration, directing the assessee to produce detailed evidence of accounting for cash deposits against sales. The disallowance under Section 40A(3) was confirmed due to lack of submissions from the assessee.

What were the facts?

The assessee deposited cash in bank accounts, claiming it was from sales of motorcycles. The Assessing Officer (AO) treated these deposits as unexplained credits under Section 68 due to lack of supporting vouchers and consolidated receipts. The AO also disallowed expenses under Section 40A(3).

What were the issues?

Whether cash deposits are sufficiently explained by sales of motorcycles without proper vouchers, and whether expenses exceeding Rs. 10,000 paid in cash are disallowable under Section 40A(3).

Which sections of the Income-tax Act were involved?

Section 68,Section 40A(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘B’ BENCH, LUCKNOW

Hearing: 27.07.2026Pronounced: 31.08.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC dated 5.06.2026, wherein the ld. CIT(A) has dismissed the appeal of the assessee against the order of the ld. Assessing Officer passed under section 143(3) for the assessment year 2023-24 dated 21.03.2025. The assessee has also filed a Stay Application bearing S.A. No.8/LKW/2026 for the stay of demand amounting to Rs. 3,25,22,608/-. The grounds of appeal in ITA No. 715/LKW/2026 are as under:- “01. Because the CIT(A) has erred on facts and in law in dismissing the appeal ex-parte upholding the addition of Rs.3,25,51,111/- made under section 68 of the Act, without appreciating the facts that the assessee be

The order continues below.

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