HEMPCANN SOLUTIONS PRIVATE LIMITED,BHUBANESWAR vs. DEPUTY COMMSSIONER OF INCOME TAX, CENTRAL CIRCLE -1 , BHUBANESWAR, BHUBANESWAR

ITA 77/CTK/2026Status: DisposedITAT Cuttack03 June 2026AY 2023-2411 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the non-availability of cash, when an employee stated it was with the Managing Director who was not questioned, cannot be treated as unexplained expenditure. The addition made by the AO and confirmed by the CIT(A) was deleted.

What were the facts?

During a survey, the assessee's cash book showed a balance of Rs. 3,89,671, but no physical cash was found. An employee stated the Managing Director maintained the cash, but the MD was not questioned. The AO treated the missing cash as unexplained expenditure.

What were the issues?

Whether the non-availability of physical cash, with an explanation that it was with the Managing Director who was not questioned, can be treated as unexplained expenditure under Section 69A of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 133A,Section 142(1),Section 143(3),Section 69C,Section 115BBE,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

Hearing: 03/06/2026Pronounced: 03/06/2026

Per Bench: This is an appeal filed by the assessee against the order of CIT(A), Bhubaneswar-2 in Appeal No.CIT(A),Bhubaneswar-2/10054/2022-23 order dated 28/11/2025 for the assessment year 2023-24. 2. None appeared for the assessee. However, written submission has been filed, which reads as under:

“1. That a survey operation was carried out under section 133A of the Act in the business premises of the Company on 27/07/2022. Notice was issued u/s 142(1) dated 02/11/2024 to which the assesse

The order continues below.

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