TEKCHAND HARILAL,BALASORE vs. INCOME TAX OFFICER, WARD-2, BALASORE, BALASORE

ITA 110/CTK/2025Status: DisposedITAT Cuttack30 June 2025AY 2017-18Bench: SHRI DUVVURU RL REDDY (Vice President)1 pages
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What did the Tribunal hold?

The Tribunal noted that the assessee's explanation for the cash deposits was that they were business receipts from retailers. The Tribunal followed a coordinate bench decision and held that the sales made by the assessee and the deposited specified bank notes were legally valid, thus no addition was warranted for these deposits. The Tribunal also found the AO's ad-hoc disallowance of carriage outward expenses unjustified.

What were the facts?

The assessee, a firm distributing FMCG products and PDS kerosene, filed its return disclosing income at Rs. 83,940.00. The Assessing Officer (AO) initiated scrutiny due to an increase in cash deposits during demonetisation and disallowed Rs. 5,01,500/- under section 69A of the Act, treating them as unexplained, and also disallowed Rs. 19,360/- on account of carriage outward expenses.

What were the issues?

Whether the cash deposits made during the demonetisation period were unexplained and whether the ad-hoc disallowance of carriage outward expenses was justified.

Which sections of the Income-tax Act were involved?

Section 69A

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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: SHRI DUVVURU RL REDDY(KZ) RL REDDY(KZ)

For Appellant: Shri P.K.Mishra, Adv
For Respondent: Shri S.C.Mohanty, Sr. DR
Pronounced: 30/06/202

The present appeal is directed at the instance of assessee against The present appeal is directed at the instance of assessee against The present appeal is directed at the instance of assessee against the order of ld. the order of ld. Addl/JCIT(A), Panchkula dated 16.12.2024 16.12.2024 in Appeal No.CIT(A), Cuttack/10695/2019 CIT(A), Cuttack/10695/2019-20, passed for Assessment Year passed for Assessment Year 2017-18. 2. Facts of the case are that the assessee is a firm engaged as a Facts of the case are that the assessee is a firm engaged as a Facts of the case are that the assessee is a firm engaged

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