SALT LAKE SERVICE STATION,KOLKATA vs. DCIT, 49(1),, KOLKATA

ITA 431/KOL/2025Status: DisposedITAT Kolkata24 July 2025AY 2017-18Bench: SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI (Accountant Member)7 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal deleted the addition under Section 69A, finding that the assessee had adequately demonstrated the source and regularity of cash deposits, especially during the demonetisation period, which were consistent with previous years' business operations. For the disallowance under Section 36(1)(va) regarding EPF, the matter was remanded to the AO for verification to determine if the deposit was made within the extended due date.

What were the facts?

The assessee, a petrol pump, challenged additions made by the Assessing Officer (AO) and sustained by the CIT(A), including a significant addition of Rs. 6,06,52,500/- under Section 69A for cash deposits during the demonetisation period and a disallowance of Rs. 22,654/- under Section 36(1)(va) for EPF contributions. The assessee contended that the cash deposits were part of regular sales, consistently made over years, and the EPF deposit was within the extended due date.

What were the issues?

Whether cash deposits during demonetisation can be treated as unexplained money under Section 69A when they are part of regular business receipts, and whether EPF contributions deposited within an extended due date are allowable under Section 36(1)(va).

Which sections of the Income-tax Act were involved?

Section 250,Section 69A,Section 36(1)(v),Section 40(a)(ia),Section 37(1),Section 36(1)(va),Section 115BBE,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH”, KOLKATA

For Respondent: DR S.B. Chakraborthy, Sr. DR

PER SANJAY AWASTHI, ACCOUNTANT MEMBER

1.

This appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), dated 02.01.2025, passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi.

1.

1 In this case, the Ld. AO vide order dated 16.12.2019 has made four additions on account of cash deposited during demonetisation period under Section 69A of the Act (Rs. 6,06,52,500/-), disallowance under Section 36(1)(v) of the

The order continues below.

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