BHUPEN BHARALI,GUWAHATI vs. DCIT/ACIT, CIR-3, GUWAHATI, GUWAHATI

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ITA 344/GTY/2025Status: DisposedITAT Guwahati13 March 2026AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the issue of cash deposits into the bank account needed to be examined at the level of the Assessing Officer. The Tribunal noted the details of withdrawals and deposits provided by the assessee. Consequently, the matter was restored to the file of the AO with a direction to examine the evidence filed by the assessee and decide the issue denovo. The Tribunal did not make a finding on the merits of the addition but remanded the case for fresh consideration. No specific issue was left undecided, as the entire issue was remitted.

What were the facts?

The assessee, Bhupen Bharali, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2017-18. The appeal challenged the confirmation of an addition of ₹23,00,000 by the Assessing Officer (AO). This addition was made under Section 68 of the Income Tax Act, 1961, concerning cash deposited by the assessee into their bank account. The assessee contended that the cash deposits were explained by prior cash withdrawals. The revenue relied on the orders of the lower authorities. The Tribunal noted the need for examination at the AO's level and restored the issue to the AO for a fresh decision.

What were the issues?

1. Whether the addition of ₹23,00,000 made by the AO and confirmed by the CIT(A) in respect of cash deposits into the bank account is justified, turning on the provisions of Section 68 of the Income Tax Act, 1961. Assessee's contention: The cash deposited into the bank account was out of prior cash withdrawals made by the assessee, thus fully explaining the source of the funds. Revenue's contention: The Revenue heavily relied on the orders of the lower authorities.

Which sections of the Income-tax Act were involved?

Section 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

For Appellant: Shri Uttam Kumar Borthakur, AR
For Respondent: Shri Dipak Singh, DR
Hearing: 10.03.2026Pronounced: 13.03.2026

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.

2.

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.

3.

At the outset, the ld. Counsel for the assessee took us through the page no.124 of the Paper Book, which is extracted below:-

4.

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.

5.

The ld. DR on the other hand heavily relied on the orders of the ld. lower authorities.

7.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced on 13.03.2026.

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