SANDEEP LOHAN,MANDLA vs. INCOME TAX OFFICE WARD, MANDLA

ITA 170/JAB/2024Status: DisposedITAT Jabalpur14 May 2026AY 2016-1715 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the lower authorities had not properly verified the assessee's explanation regarding opening cash balance and other explainable sources of expenditure. No categorical finding was made by the Revenue to establish undisclosed income. Therefore, the matter was restored to the Assessing Officer for fresh examination.

What were the facts?

The assessee declared agricultural income and nil total income. The Assessing Officer made an addition of Rs. 37,41,767/- on account of expenses from undisclosed sources, which was upheld by the CIT(A). The assessee appealed to the ITAT, arguing that the expenses were explainable and the lower authorities failed to properly verify the facts.

What were the issues?

Whether expenses claimed by the assessee were from undisclosed sources and if the Assessing Officer exceeded the scope of limited scrutiny without proper conversion.

Which sections of the Income-tax Act were involved?

Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JABALPUR BENCH “SMC”, JABALPUR

Before: SHRI KUL BHARAT

For Appellant: Shri Prashant Nema, Advocate
For Respondent: Shri N. M. Prasad, Sr. DR-1

PER KUL BHARAT, VICE PRESIDENT.:

This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC) dated 29.08.2024 pertaining to the assessment year 2016-17. The assessee has raised the following grounds of appeal: -

“1. That On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in upholding the action of the Ld. AO in making an addition of Rs. 37,41,767/- to the income of assessee on account of expenses from undisclosed sources. The sources of expenditures are fully explainable.

2.

That On the facts and in the circumstances of the case and in law

The order continues below.

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