SARASWATI SHISHU MANDIR PARICHALANA SAMITI, HATIATANGAR,HATIATANGAR vs. ITO EXEMPTION, CUTTACK, CUTTACK
Facts
The assessee, running an educational institution, deposited Rs. 11,33,280/- in cash during demonetization, including Rs. 4,98,500/- in SBNs. The total receipts were Rs. 1,54,00,000/-. The AO treated the deposited amount as unexplained.
Held
The assessee did not produce the cash book to prove the transactions. However, in the interest of justice, the matter is restored to the AO for re-adjudication. The AO must verify the cash book to ascertain if the cash deposited was available.
Key Issues
Whether the cash deposited during demonetization was adequately explained and supported by the cash book.
Sections Cited
IT Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH CUTTACK
Before: SHRI GEORGE MATHAN
आयकर अपीलीय अिधकरण, “एस.एम.सी” �यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH CUTTACK
(THROUGH VIRTUAL HEARING) �ी जाज� माथन, �याियक सद�य के सम� । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.445/CTK/2025 (िनधा�रण वष� / Assessment Year : 2017-2018) Saraswati Shishu Mandir Vs ITO (Exemption), Cuttack Parichalana Samiti, Hati Nagar, Kendujhargarh, Kendujhar Sadar, Kendujhar 758001 PAN No. : AAJAS 6194 B (अपीलाथ� /Appellant) .. (��यथ� / Respondent) िनधा�रती क� ओर से /Assessee by : Shri Dr. Sanjay Behura & Ananta Narayan Singhbabu, ARs राज�व क� ओर से /Revenue by : Shri Vijay Singh, Sr. D.R सुनवाई क� तारीख / Date of Hearing : 25/09/2025 घोषणा क� तारीख/Date of Pronouncement : 25/09/2025 आदेश / O R D E R This is an appeal filed by the assessee against the Ld. Addl/JCIT (A)-1,Nashik order dated 05/06/2025 passed in Appeal No.CIT(A),Cuttack/10525/2019-20 for the assessment year 2017-2018. 2. It was submitted by the Ld. AR that the assessee is running an educational institution in Kendujhar. It was the submission that the during the demonetization period the assessee had deposited Rs.11,33,280/- in cash in his bank account. It was further submission that the SBN deposited during the demonetization period was to an extent of Rs.4,98,500/-. It was the further submission that the assessee had total receipts of Rs.1,54,00,000/-. It was the submission that the AO did not accept the contentions of the assessee in respect of the demonized
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currency deposited in the bank account and has stated the same as unexplained money in the hands of the assessee. It was the submission that he had no objection if the issue is restored to the file of the AO for verification from the cash book in respect of the money deposited in the bank account. 3. In reply, the Ld. Sr. DR submitted that he had no objection if the issue is verified by the AO. 4. I have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessee has deposited the money and as per the claim of the ld. AR the money is out of the cash book of the assessee. The assessee admittedly has not produced the cash book before me for proving the said transactions. However, in the interest of justice, I am of the view that issues in this appeal are required to be restored to the file of the AO for re-adjudication after granting the assessee adequate opportunity to prove its claim. The AO shall verify the cash book in respect of the availability of the cash for the above deposit in the bank account of the assessee. If the assessee is able to show that it had adequate cash in its cash book for the purpose of depositing the same in its bank account and the same is equal to or an excess of the cash deposited in the bank account during the same dates, then no addition is called for.
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In the result, the appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 25/09/2025.
Sd/- (जाज� माथन) (GEORGE MATHAN) �याियक सद�य / JUDICIAL MEMBER �दनांक Dated 25/09/2025 Prakash Kumar Mishra, Sr.P.S. आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant- Saraswati Shishu Mandir, Parichalana Samiti, Hati Nagar, Kendujhargarh, Kendujhar Sadar, Kendujhar 758001 2. ��थ� / The Respondent- ITO (Exemption), Cuttack आयकर आयु�(अपील) / The CIT(A), 3. आयकर आयु� / CIT 4. 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, कटक / DR, ITAT, Cuttack 6. गाड� फाईल / Guard file. स�यािपत �ित //True Copy// आदेशानुसार/ BY ORDER,
(Assistant Registrar) आयकर अपीलीय अिधकरण, कटक/ITAT, Cuttack
