SHREE TRADING COMPANY ,NAGPUR vs. ITO WARD 4(5), NAGPUR

ITA 437/NAG/2025Status: DisposedITAT Nagpur31 August 2026AY 2017-1813 pages
AI SummaryDismissed

What were the facts?

The assessee, a Kirana store, deposited Rs. 98,07,500/- in old currency notes during demonetisation. The AO accepted Rs. 17,80,000/- as explained and added the balance Rs. 80,27,500/- under Section 69A as unexplained. The CIT(A) confirmed an addition of Rs. 76,78,441/-.

What did the Tribunal hold?

The Tribunal held that mere recording of cash sales in books is not conclusive proof of genuineness. The assessee failed to produce primary evidence like stock registers or VAT assessment orders to substantiate the cash sales, making the explanation for deposits tenuous.

What were the issues?

Whether cash deposits made during demonetisation, claimed as business receipts, are unexplained money under Section 69A when the assessee fails to provide adequate supporting evidence for the genuineness of sales.

Which sections of the Income-tax Act were involved?

Section 69A,Section 44AB,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Shri Kapil Hirani, Advocate
For Respondent: Shri Surjit Kumar Saha, Sr.DR
Hearing: 10.06.2026Pronounced: 31.08.2026

PER KHETTRA MOHAN ROY, AM:

This appeal filed by the assessee is directed against the order of National Faceless Appeal Centre, Delhi, (for short, “CIT(A)”), dated 07/07/2025 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”) which is emanating from the assessment order dated 28.12.2019 passed u/s. 143(3) of the Act by the ITO, Ward-4(5), Nagpur, for the Assessment Year (AY) 2017-18. 2. Assessee has raised the following grounds of appeal:

“1. On the facts and circumstances of the case and in law, the AO grossly erred in making and the CIT(A) grossly erred in confirming the addition of Rs. 76,78,441 under section 69A of the Income Tax Act, 1961 (hereinafter referred to as "Act") ignoring the fact t

The order continues below.

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