SIKHA DATTA,KOLKATA vs. ITO, WARD 44(1), , KOLKATA

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ITA 1107/KOL/2025Status: DisposedITAT Kolkata19 December 2025AY 2015-2016Bench: SHRI RAJESH KUMAR (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, after examining the records, found that the assessee had provided sufficient evidence, including cash withdrawals over three years and previous balance sheets, to substantiate the availability of the cash. Consequently, the Tribunal concluded that the addition made by the AO and confirmed by the CIT(A) was incorrect and directed its deletion.

What were the facts?

The assessee's return of income for AY 2015-16 was selected for scrutiny. The Assessing Officer (AO) made an addition of Rs. 10,20,000/- under Section 69A of the Income Tax Act for unexplained cash deposited in the Canara Bank account. This addition was subsequently confirmed by the Ld. CIT(A).

What were the issues?

Whether the addition of Rs. 10,20,000/- under Section 69A for unexplained cash deposit in the bank account was sustainable, given the assessee's demonstration of sufficient cash availability.

Which sections of the Income-tax Act were involved?

Section 250,Section 69A,Section 143(1),Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH,KOLKATA

Appearances by: Assessee represented by : S. Chatterjee, FCA Department represented by : Monalisa Pal Mukherjee, Sr. DR Date of concluding the hearing : 17.12.2025 Date of pronouncing the order : 19.12.2025 O R D E R The present appeal filed by the assessee arises from order dated 23.11.2023 passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)].

2.

The only issue is raised by the assessee in the various grounds of appeal is against the confirmation of addition of Rs. 10,20,000/- by the Ld. CIT(A) as made by the AO u/s 69A of the Act in respect of unexplained money qua the cash deposited in the bank account of the assessee.

3.

The facts in brief are that the assessee filed its return of income on 01.01.2016 declaring total income of Rs. 2,42,020/- which was processed Sikha Datta u/s 143(1) of the Act. The case of the assessee was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act along with questionnaire were duly issued and served upon the assessee which were also replied by the assessee. The AO found during the year the assessee deposited cash into the bank account with Canara Bank. Accordingly, the assessee is asked to explain the same. The assessee replied the same by submitting the copy of ITRs for FY 2014-15, balance sheet of the earlier year showing cash in hand . The assessee is a partner in a firm from where who was used to withdraw money in cash as well as by cheque. The AO did not accept the contention of the assessee and the cash deposited of Rs. 10,20,000/- was added to the income of the assessee u/s 69A of the Act as unexplained money. In the appellate proceedings, the Ld. CIT(A) confirmed the addition.

4.

After hearing the rival contention and perusing the material available on record including the balance sheet of the firm in which the assessee is a partner as well as the assessee’s balance sheet in respect of earlier assessment years, we find that the assessee has proven with the help of evidences that the money was available with the assessee. The assessee has furnished the statement showing cash withdrawals during three years and sufficient availability of cash for deposit into the bank. Therefore, we find merit in the contention of the assessee that the addition as made by the AO and confirmed by the CIT(A) is incorrect against the facts on record. Accordingly, we set aside the order of CIT(A) and direct the AO to delete the addition.

5.

In result, appeal of the assessee is allowed.

Order pronounced on 19.12.2025

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