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Facts
The assessee, an individual and director of a private limited company, filed a return of income for AY 2022-23. The Assessing Officer assessed the total income at Rs. 99,88,326/-, including an addition of Rs. 94,89,091/- under Section 69A and Rs. 1,415/- for undisclosed interest income.
Held
The Tribunal found that due to the critical health condition of the assessee's mother, necessary details and documents could not be furnished to the lower authorities. Considering the totality of facts and in the interest of justice, the Tribunal set aside the CIT(A)'s order.
Key Issues
Whether the addition made under Section 69A for unexplained cash and online deposits is justified, especially when the assessee claims it's due to family financial arrangements during a medical emergency.
Sections Cited
69A, 142(1), 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Assessment Year : 2022-23 Sameer Chandrakant Vs. Assessment Unit, Dugane, Income Tax Department. Khadakwasala, Khadakwasala Rs, Pwd Colony, Khadakwasala, Pune- 411024. PAN : AHEPD1242L Appellant Respondent Assessee by : Shri Kishore B. Phadke Revenue by : Shri Pramod Shahakar Date of hearing : 03.11.2025 Date of pronouncement : 18.12.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 21.03.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2022-23.
The appellant has raised the following grounds of appeal :-
1. The Learned CIT (A) has erred both on facts as well as in law in upholding the addition Rs. 94,89,091/- u/s 69A rejecting the Assessee regarding the cash deposit of Rs.41,86,000/- and not considering submission of appellant regarding the bank deposit of Rs. 53,03,091/-.
2. The Learned CIT (A) has erred both on facts as well as in law in confirming addition of amounts of Rs. 53,03,091/- credited in bank account without considering the submission of Assessee.
The appellant request for admission of additional evidences if any requires in support of above grounds of appeal
4. The appellant craves, leave to add, alter, amend or delete any of the grounds of appeal.”
3. Facts of the case, in brief, are that the assessee is an individual and a director of Unity Green Solutions Private Limited. The Return of Income for AY 2022-23 was furnished on 30/12/2022 declaring total income of Rs.4,97,820/-. The said income consists of Income from salary of Rs.6,00,000/-, Income from other sources of Rs.5,375/-, and Income from house property of Rs.1,20,000/-. The case was selected for scrutiny under CASS and statutory notices u/s 142(1) and show cause notices were also issued to the assessee. After considering the submissions of the assessee, order u/s 143(3) was passed by Assessing Officer on 12/03/2024 determining total income of Rs.99,88,326/- as against the income returned by the assessee at Rs.4,97,820/-. The above assessed income includes addition of Rs.94,89,091/- u/s 69A and addition of Rs.1,415/- for undisclosed interest income.
4. Being aggrieved with the above assessment order, an appeal was preferred before Ld. CIT(A)/NFAC. Not being satisfied with the reply of the assessee with regard to addition of Rs.94,89,091/-, Ld. CIT(A)/NFAC confirmed the addition of Rs.94,89,091/- made by the Assessing Officer. However, with regard to addition of Rs.1,415/-, Ld. CIT(A)/NFAC partly allowed the ground and directed the Assessing Officer to verify the claim of the assessee.
It is this order (with regard to confirmation of addition of Rs.94,89,091/- made by the Assessing Officer u/s 69A of the IT Act) against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT(A)/NFAC is unjustified. Ld. AR further submitted before us that the addition of Rs.94,89,091/- consists of cash deposit of Rs.41,86,000/- in the bank account and online transfer of Rs.53,03,091/- in the bank account. In this regard, Ld. AR submitted that the mother of the assessee & senior member of the family, Smt. Sugandha Chandrakant Dugane was suffering from brain stoke and undergoing medical treatment. To meet any unforeseen eventuality and emergency requirement of funds, the family have obtained the loans and distributed it amongst the members who had withdrawn the cash and kept in hand for the said purpose. Subsequently, the cash was deposited back into the bank account of the assessee. Regarding amount of Rs.53,03,091/- transferred in the bank account of the assessee, the assessee has furnished complete details and sources from where and by whom the amount was transferred and regarding cash deposit of Rs.41,86,000/-, Ld. AR also furnished the details of persons and from where they have withdrawn and deposited in the bank account of the assessee, therefore, the same was required to be accepted, however Ld. CIT(A)/NFAC erred in not accepting the same. Ld. AR further submitted that during the pendency of this appeal the ailing mother of the assessee i.e. Smt. Sugandha Chandrakatn Dugane expired on 02.05.2025 for whom all this exercise was done by his family. Ld. AR requested to provide one opportunity to appear and explain all the relevant facts and details before the Assessing Officer in support of its contentions.
Ld. DR appearing from the side of the Revenue relied on the orders passed by the subordinate authorities and requested to confirm the same.
8. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that due to critical health condition of mother of the assessee, the requisite details and documents could not be furnished before the Assessing Officer as well as before Ld. CIT(A)/NFAC. Before us, Ld. AR produced various charts and details in support of its contentions. After perusing the same, we find some force in the arguments of Ld. counsel of the assessee. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC with regard to addition of Rs.94,89,091/- made u/s 69A of the IT Act and remand the matter back to the file of the Assessing Officer with a direction to decide the issue of addition of Rs.94,89,091/- afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by the Assessing Officer in this regard and to produce the relevant details, documents and evidences in support of its contentions without taking any adjournment under any pretext, otherwise the Assessing Officer