RAJASHREE KHUNTIA,CUTTACK vs. ITO WARD(1), CUTTACK
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal noted that even if the entire disclosed turnover was considered as deposited, there was a difference of Rs. 31,67,715/-. However, considering the loans received by the assessee and the disclosed turnover, the entire amount deposited in the bank account was explained.
What were the facts?
The assessee appealed an order of the CIT(A) regarding the assessment year 2018-19. The Assessing Officer (AO) made an addition of Rs. 1,01,49,500/- on account of unexplained money, which was reduced by the CIT(A) to Rs. 71,57,309/-. The assessee claimed to have received loans aggregating to Rs. 62 lakhs, which were repaid during the year.
What were the issues?
Whether the addition made by the AO for unexplained money is justified, considering the loans taken by the assessee.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
("नधा"रण वष" / Assessment Year : 2018-19 ) Rajashree Khuntia, R/O. Health Vs ITO, Ward -1, Cuttack Line, Kalyani Nagar, Madhupatna, Cuttack PAN No. : BBHPK 1435 Q (अपीलाथ" /Appellant) .. (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee by : Mrs Rajashree Khuntia (in person) राज"व क" ओर से /Revenue by : Shri Vijaya Singh, ld Sr DR सुनवाई क" तार"ख / Date of Hearing : 3 /12/2025 घोषणा क" तार"ख/Date of Pronouncement : 3 /12/2025 आदेश / O R D E R Per Bench :
This is an appeal filed by the assessee against the order dated 26.8.2025 passed by ld CIT(A), NFAC, Delhi in Appeal No. NFAC/2017-18/10241800 for the assessment year 2018-19. 2. Mrs Rajashree Khuntia, the assessee appeared in person and Shri Vijaya Singh, ld Sr DR appeared for the revenue.
2 3. It was submitted by Smt. Rajashree Khuntia that the counsel engaged in this case is unable to attend to explain the matter due to some unavoidable circumstances. She submitted that an addition of Rs.1,01,49,500/- has been made by the Assessing Officer and same has been reduced to 71,57,309/- by the ld CIT(A). It was explained by ld Sr DR that the assessee had deposited cash of Rs.1,31,41,700/- in her bank account. It was the submission that the Assessing Officer found that the turnover of the assessee was to an extent of Rs.99,73,985/-. The Assessing Officer took the stand that 30% of the total turnover should have been deposited in cash. Thus, he arrived at a difference (Rs.1,31,41,700 – Rs.29,92,200) = Rs.1,01,49,500/- and added back to the income of the assessee an unexplained money. It was further submitted by ld Sr DR that ld CIT(A) had increased the turnover from 30% to 60% and had given additional relief of Rs.29,92,200/-. It was the submission that adequate relief had been granted to the assessee and no further relief should be granted to the assessee. On a specific query, it was fairly agreed that the deposit in the bank is Rs.1,31,41,700/- . Even if the entire turnover disclosed of Rs.99,3,985/- is considered to have been deposited in the bank account, there still a difference of Rs.31,67,715/- only. The assessee was asked how the same could be explained. The assessee submitted that during the year, she has received loans from various persons to an extent of Rs.62 lakhs, which has also been repaid during the impugned assessment year. The assessee has filed the details of loans taken from different persons, which reads as follows:
3 “
The said details also show the Adhar Number and address of the various persons, who have given the loans.
Considering the fact that the assessee has received the loan of Rs.62 lakhs and the turnover of the assessee is Rs.99,73,985/-, obviously, the entire amount of Rs.1,31,41,700/- deposited in the bank account is explained. This being so, as the assessee had adequate funds for making the deposit in the bank account, the addition made by the AO and reduced by the ld CIT(A) stands deleted.
In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 3/12/2025. (राजेश कुमार) (जाज" माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सद"य/ ACCOUNTANT MEMBER "या"यक सद"य / JUDICIAL MEMBER "दनांक Dated 3/12/2025 B.K.Parida, Sr.P.S(OS)
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