SUMIT WADHWA,AMBALA vs. INCOME TAX OFFICER(WARD-4,AMABALA), AMBALA

ITA 1742/CHANDI/2025Status: DisposedITAT Chandigarh25 August 2026AY 2017-184 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had provided sufficient documentation like cash books and bank statements to substantiate the cash deposits from business activities. Since the AO did not find fault with the books of account or trading results, the addition could not be sustained.

What were the facts?

The assessee deposited Rs. 13.34 Lacs in their bank account during the demonetization period, claiming it was from cash sales and debtor realizations. The AO added this amount, partially accepting Rs. 4 Lacs, alleging data manipulation.

What were the issues?

Whether the cash deposits made during demonetization were sufficiently explained by the assessee from their business income, and if the AO was justified in making an addition without rejecting the books of account.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE BEFORE: SHRI MANOJ KUMAR AGGARWAL, AM & SH. RAJESH DAMODARLAL SHARMA, JM आयकर अपील सं./ ITA No. 1742/Chd/2025 "नधा"रण वष" / Assessment Year : 2017-18 Sumit Wadhwa बनाम ITO, H.No. 26, Housing Board Colony Ward-4, Commissioner Court, Ambala SO Ambala, Ambala-133001 "ायी लेखा सं./PAN NO: AAXPW2350A अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Sh. Ajay Jain, CA – Ld. AR राज" की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 24.08.2026 उदघोषणा की तारीख/Date of Pronouncement : 25.08.2026

आदेश/Order PER RAJESH DAMODARLAL SHARMA, J.M: The present appeal by the assessee is directed against the order passed u/s 250 of the Income Tax Act by Ld. Addl. /JCIT (A)-2, Jaipur in the matter of an assessment as framed by Ld. AO u/s on 26.12.2019. The sole grievance of the assessee is confirmation of addition of cash deposit for Rs.13.34 Lacs u/s 68 r.w.s. 115BBE. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. The assessee being resident

2 1742/Chd/2025 individual is stated to be

The order continues below.

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