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Facts
The assessee appealed against the confirmation of an addition of ₹23,00,000/- by the CIT(A) which was made by the AO as unexplained cash deposit under section 68. The assessee claimed the deposit was out of prior withdrawals.
Held
The Tribunal observed that the details of cash withdrawals and reintroductions needed to be examined at the Assessing Officer's level. Consequently, the matter was restored to the AO for fresh examination of the evidence filed by the assessee.
Key Issues
Whether the cash deposits made by the assessee into the bank account were adequately explained and not liable for addition under Section 68 of the Income Tax Act.
Sections Cited
68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, GAUHATI BENCH, GUWAHATI
Before: SHRIDUVVURU RL REDDY, VP & SHRI RAJESH KUMAR, AM
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 29.09.2025 for the AY 2017-18.
The only issue raised by the assessee is against the confirmation of addition of ₹23,00,000/- by the ld. CIT (A) as made by the ld. AO in respect of cash deposit by the assessee into the bank account, which was added by the ld. AO u/s 68 of the Act.
At the outset, the ld. Counsel for the assessee took us through the page no.124 of the Paper Book, which is extracted below:-
The ld. Counsel for the assessee submitted that the deposit of cash into the bank account was out of withdrawal made by the assessee prior to that and hence, the source of cash deposited into the bank is fully explained.
The ld. DR on the other hand heavily relied on the orders of the ld. lower authorities.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 13.03.2026.