NAINAR MOHAMED ABUNU MUJAHEER,NAGAPATTINAM vs. ITO, WARD-1,, NAGAPATTINAM

Assessment Years: 2017-18 Nainar Mohamed Abunumujaheer, Income Tax Officer, No.21, Sir Ahamaed Street, Ward-1, Nagapattinam, Nagapattinam. Tamil Nadu-611 001. [PAN: AHSPA3927H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Assessee by : Shri Y.Sridhar,F.C.A, प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुनवाई की तारीख/Date of Hearing : 17.06.2025 घोषणा की तारीख /Date of Pronouncement : 19.06.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :

This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / APL / S / 250 / 2024-25 / 1074694011(1) dated 19.03.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), for the assessment year 2017-18. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. 2.0 At the outset, the Ld.Counsel for the assessee submitted that the Ld.CIT(A) has dismissed its appeal without affording due opportunity of being hard. It was stated that the addition of Rs.1,34,786/- on account of unverified expenses and of Rs.13,93,000/- on account of unexplained cash deposits during the demonetization period was made to the returned income. The Ld.Counsel argued that the Ld.CIT(A) had issued statutory notices but the same could not be complied on account of compelling personal constraints. It is the case of the appellant assessee that the disallowance of business expense is purely imaginary and arbitrary. On the issue of cash deposits, the assessee has argued that the Ld.AO in para 5 of his order himself concluded that the assessee was having sufficient cash balance in its books on the day before announcement of demonetization and therefore the addition per se and its confirmation is erroneous and excessive. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. 4.0 We have heard rival submissions in the light of material available on records. We have noted from para 5 of the order of the Ld.AO as under: “….it is noticed that the sufficient cash balance was available in the assessee’s cash book on the day before the announcement of demonetization. However, considering the assessee’s reply, the time for deposit of specified bank notes in their bank account is considered for ten days i.e upto 21.11.2019….”