ADITYA ORNAMENTS,RAJKOT vs. THE ITO, WARD-2(1)(1), RAJKOT, RAJKOT

ITA 599/RJT/2026Status: DisposedITAT Rajkot31 August 2026AY 2017-1813 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition of Rs. 2,65,59,500/- was unsustainable. The cash deposits were explained as proceeds from genuine cash sales recorded in audited books, corroborated by stock and sales registers and VAT returns, and taxing the same receipt again would amount to double taxation.

What were the facts?

The assessee, Aditya Ornaments, deposited a significant amount of cash during the demonetization period. The Assessing Officer treated a portion of these deposits as unexplained income under Section 69A, citing insufficient explanation from the assessee.

What were the issues?

Whether cash deposits made during demonetization, explained as cash sales recorded in audited books, can be treated as unexplained income under Section 69A. Whether such an addition would lead to double taxation.

Which sections of the Income-tax Act were involved?

Section 69A,Section 143(3),Section 145(3),Section 44AB,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Mehul Ranpura, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 25/08/2026Pronounced: 31/08/2026

Per, Bench: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2017-18, is directed against the order under section 250 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre (NAC) Delhi/Commissioner of Income-tax (Appeals) [in short ‘NFAC/Ld.CIT(A)’], dated 27.02.2026, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Act, dated 24.

The order continues below.

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