AKHILESH MISHRA,NANAKMATTA vs. INCOME TAX OFFICER, KHATIMA
Facts
The assessee, a 70-year-old teacher with agricultural income, filed a return declaring INR 3,60,140. The AO made an addition of INR 29,15,000 as unexplained cash deposit. The assessee claimed the cash was withdrawn from savings and prior deposits.
Held
The Tribunal held that the assessee was able to explain the source of cash deposits from prior withdrawals and past savings. The accumulation of cash was also evident in the capital account.
Key Issues
Whether cash deposits in the bank account are unexplained income or adequately explained by prior withdrawals and savings.
Sections Cited
250, 144, 148
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Income Tax Appellate Tribunal, DEHRADUN “SMC” BENCH: DEHRADUN
Before: SHRI YOGESH KUMAR U.S. & SHRI MANISH AGARWAL
IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN “SMC” BENCH: DEHRADUN BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 31/DDN/2026 [Assessment Year : 2014-15] Akhilesh Mishra vs ITO Sitarganj Road, Near Balaji Mandi Samiti Mandir, Nanakmatta Campus, Khatima, Sahib, SItarganj, Udham Singh Uttarakhand -262311 Nagar, PAN-AWKPM6776B Uttarakhand APPELLANT RESPONDENT Appellant by Shri Amit Kumar Mishra, CA Respondent by Shri Amar Pal Singh, Sr.DR Date of Hearing 11.03.2026 Date of Pronouncement 13.03.2026 ORDER PER BENCH: The present appeal is filed by assessee against the order dated 19.09.2025 passed by Ld. Commissioner of Income Tax (A), NFAC, Delhi [“Ld.CIT(A)”] u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 28.11.2019 passed u/s 144 r.w.s. 148 of the Act pertaining to Assessment Year 2014-15.
Brief facts of the case are that the assessee is a teacher and having source of income from private teaching/tuition. The return of income was filed declaring total income at INR 3,60,140/-. The case of the assessee was selected for scrutiny and order was passed u/s 148 r.w.s.144 of the Act dated 28.11.2019 by making addition of INR
ITA No. 31/DDN/2026
29,15,000/- towards the cash deposit as unexplained income of the assessee.
Before us, Ld.AR for the assessee submits that assessee is presently aged at 70 years and is having regular source of income from tuition etc. Ld. AR submits that the immediate source of cash deposit was withdrawn from time to time prior to the deposits and, therefore, the same is duly explained out of the withdrawals so made. Ld. AR thus, requested to delete the addition so made and uphold by Ld.CIT(A).
On the other hand, ld. Sr. DR for the Revenue supported the orders of the lower authorities and requested for the confirmation of the same.
Heard the contentions of both the parties at length and perused the material available on record. It is an admitted fact that assessee is a well-qualified teacher of Hindi and Sanskrit subjects and besides this is having agricultural income from agricultural land which was regularly declared in the return of income filed for several years. Assessee also filed copies of capital account for various years where the accumulation of cash is evident which is in conformity with the income declared for the respective assessment years. AO has not doubted the source of the income of the assessee. Apart from this, from the perusal of the bank statement, it is observed that there were cash withdrawal immediately before the deposits made of same amounts in cash in the bank account. Since no material is brought Page | 2
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on record by AO to show that this withdrawal was utilized elsewhere and therefore, credit of the same should be given against the deposit to the bank in cash.
In the light of the above discussion, we are of the considered view that the assessee has been able to explain the immediate source of cash deposited in bank on various dates out of the cash withdrawals and past savings. Thus, the addition made is hereby, deleted.
In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 13.03.2026.
Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) JUDICIAL MEMBER ACCOUNTANT MEMBER Date- 13.03.2026 *Amit Kumar, Sr.P.S*
