SHAMBHAJI BHAGIRATHI SHUKLA,GORAKHPUR vs. WARD 42(1)(5), MUMBAI, MUMBAI

We heard the rival submissions and considered the documents available on record. The assessee filed the appeal before us by challenging the addition amount of Rs. 10,76,000/- u/s. 68 for deposit of cash in the bank account. The assessee's case was reopened u/s. 147 by issuance notice u/s. 148. The assessee is a non-filer of income tax return. In compliance of notice u/s. 148 the assessee filed the return u/s. 148 of the Act and declared the business turnover amount to Rs. 6,52,000/- and earned commission amount to Rs. 66,559/-. The assessee declared the profit at the rate of 22.04% u/s. 44AD of the Act, amount to Rs. 1,58,400/-. The assessee further submitted that the assessee has withdrawn the cash from bank amount to Rs. 8,18,000/-. So, considering the business turnover and the cash withdrawal from the bank, the total amount is sufficient to deposit cash in the bank accounts. But the Ld. AO, without considering the assessee's plea, had rejected the assessee's submission on the ground that no sufficient evidence was duly brought on record before the Ld. AO. Accordingly, the addition was confirmed, amount to Rs. 10,76,000/- u/s. 68 of the Act. The aggrieved assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) had considered the assessee's submission, but due to lack of evidence, the Ld. CIT(A) had confirmed the addition. Being aggrieved, the assessee filed an appeal before us.

Before the bench, the Ld. AR filed the application for admission of additional evidence & filed the bank statement as evidence that the assessee had withdrawn the cash from bank account in different occasions. The assessee stated that the matter was a very old, so the said bank statement was not available with the assessee during the assessment and the appellate proceedings. The relevant paragraphs of the application of the additional evidence are reproduced as below:

The Ld. DR argued and stands in favor of the order of the revenue authorities.

In our considered view, we find that the assessee is a non-filer of income tax return. The assessee filed the return in compliance of notice u/s. 148 of the Act. The assessee declared the business income alongwith the commission income, and the net profit was declared more than 8% u/s. 44AD of the Act. It is also submitted the assessee had available balance of cash out of his business turnover and also the cash withdrawal from bank account through ATM. So, there is sufficient availability of cash to deposit in bank account. But the assessee was unable to submit the bank statement as evidence as proof that the cash was duly withdrawn from the bank account. Considering this, we admit the application for additional evidence submitted by the assessee before us & the Ld. DR had not made any objection for admission of additional evidence. We restore the appeal to the file of Ld. AO to verify the additional evidence and availability of cash for depositing the cash in bank account. Further, the assessee is directed to submit a cash flow statement to substantiate the sufficient cash was available in hand to deposit in the bank account. Accordingly, the appeal is set aside to the file of Ld. AO with a direction mentioned above. Needless to say, the assessee should get reasonable opportunity of hearing in set aside assessment proceedings. The assessee is directed to cooperate with the proceedings and furnish the requisite documents without seeking unnecessary adjournments. We make it clear that the matter is restored to the Ld. AO for the aforesaid specific and limited purpose only, and the scope of the remand shall not extend to issues which are not the subject matter of this verification.

In the result, the appeal of the assessee bearing ITA No. 3874/Mum/2026 is allowed for statistical purposes. Order pronounced in the open court on 21st day of September 2026. Sd/- Sd/- (RATNA DASGUPTA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, िदनांक/Dated: 21/09/2026 Soumili, PS Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. 3. आयकरआयु� CIT 4. िवभागीय�ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, Mumbai 5. गाड�फाइल/Guard file.