ITO-23(3)(6).MUMBAI, MUMBAI vs. RAJESHWAR BULLION TRADING , MUMBAI

ITA 6132/MUM/2025Status: DisposedITAT Mumbai20 February 2026AY 2017-18Bench: SHRI SAKTIJIT DEY (Vice President), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)3 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the AO could not treat cash deposits as unexplained income solely due to the unavailability of PAN of some buyers, especially when supporting evidence was provided. The Tribunal also found that the reassessment proceedings were vitiated due to non-compliance with the approval requirements under Section 151.

What were the facts?

The assessee firm reported cash sales during the demonetization period. The AO treated a portion of cash deposits as unexplained and added it to income, applying a higher tax rate. The First Appellate Authority remanded the issue back to the AO for de novo adjudication.

What were the issues?

Whether cash sales during demonetization can be treated as unexplained income without proper opportunity and evidence? Whether reassessment proceedings are valid if the required approval under Section 151 is not obtained from the competent authority?

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE,Section 147,Section 148A,Section 151

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Cases cited in this judgment(5)Show list

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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

For Appellant: Shri Dhran Gandhi
For Respondent: Shri Annavaram Kosuri (Sr. AR)
Hearing: 16.02.2026Pronounced: 20.02.2026

Per Saktijit Dey, Vice President:

The captioned appeals, one by the assessee and the other by the Revenue arise out of two separate orders passed by National Faceless Appeal Centre (‘NFAC’ for short), Delhi, pertaining to the very same assessment year (A.Y. for short) 2017-18. However, while assessee’s appeal arises out of original assessment proceeding, the Revenue’s appeal arises out of reassessment proceeding u/s. 147 of the Act. M/s. Rajeshwar Bullion Trading

2.

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The order continues below.

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