SANJAY AGGARWAL,AMBALA vs. DCIT/ACIT CENT-2, CHANDIGARH, CHANDIGARH

ITA 793/CHANDI/2026Status: DisposedITAT Chandigarh01 October 2026AY 2017-185 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the first appeal before the CIT(A) was dismissed without considering the assessee's submissions and explanations. Citing the principle of natural justice and considering the facts and circumstances, the Tribunal set aside the impugned order of the CIT(A). The appeal was restored to the file of the CIT(A) for de novo adjudication. The assessee was directed to plead and prove its case forthwith. The Tribunal did not decide the substantive issues regarding the addition of cash deposits or the estimation of business income, as the matter was remanded for fresh consideration. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Shri Sanjay Aggarwal, proprietor of M/s S.K. Jewellers, engaged in trading gold bullion and jewellery, is in appeal against the order of the CIT(A) dated 20.01.2026, which upheld an assessment framed by the AO u/s 143 r.w.s. 153B(1)(b) on 23.12.2018 for AY 2017-18. The assessment followed a search action on the assessee group on 21.03.2017. The primary issue was the assessment of estimated business income and addition of cash deposits amounting to Rs. 835.06 Lacs, which the AO held to be from unaccounted sources. The assessee claimed these deposits were from earlier withdrawals, cash sales, and advances. The AO rejected the assessee's explanations due to discrepancies, unverified parties, and lack of books of accounts, leading to the rejection of books u/s 145(3).

What were the issues?

1. Whether the addition of Rs. 835.06 Lacs as unexplained cash deposits, to be taxed at 60% u/s 115BBE, is justified? (Question of law and fact) 2. Whether the estimation of business income by rejecting the assessee's books of accounts u/s 145(3) and applying specific GP rates is correct? (Question of law and fact) Assessee's Contentions: - Sufficient details and explanations were furnished by the assessee for AYs 2011-12 and 2017-18, including a reply to the CIT(A) on 21.04.2021. Revenue's Contentions: - Despite various notices, the assessee did not furnish any details to the CIT(A).

Which sections of the Income-tax Act were involved?

Section 143,Section 153B,Section 145(3),Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 20.01.2026 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143 r.w.s. 153B (1)(b) of the Act on 23.12.2018. The issues that fall for our consideration are assessment of estimated business income and addition o

The order continues below.

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