Loading judgment…
Facts
The assessee, Rasma Finance Co., appealed against an addition of Rs. 5.60 Lacs made by the AO for cash deposited during the demonetization period, which the assessee claimed was from its finance business. The CIT(A) upheld this addition, prompting the assessee to file an appeal before the Income Tax Appellate Tribunal.
Held
The Tribunal noted that the CIT(A) failed to consider various documents submitted by the assessee, such as loan files and bank statements, which were material to substantiating the cash deposits. Consequently, the Tribunal restored the matter back to the CIT(A) for a de novo adjudication on merits, with directions for the assessee to present and prove its case.
Key Issues
Whether the addition of cash deposits made during demonetization was justified, and if the CIT(A) erred by not considering the evidence furnished by the assessee.
Sections Cited
143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AMRITSAR
O R D E R
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals), Aurangabad [CIT(A)] dated 19-03-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 03-12-2019. The Ld. AR stated that the replies of the assessee have not, at all, been considered by Ld. CIT(A). The Ld. Sr. DR pleaded for dismissal of the appeal.
In the assessment order. Ld. AO made addition of Rs.5.60 Lacs being cash deposited by the assessee during demonetization period.
The explanation of the assessee that the cash was received out of finance business was rejected. The Ld. CIT(A) confirmed the addition against which the assessee is in further appeal before Tribunal.
From assessee’s paper-book, it could be seen that the assessee furnished various documents to Ld. CIT(A) vide its reply dated 21-02- 2025 which include loan file, confirmation, bank statements, loan ledger etc. to substantiate the deposits. However, the same has not been considered by Ld. CIT(A), These documents would have material bearing on the impugned addition. Therefore, I deem it fit to restore back the appeal to Ld. CIT(A) for de novo adjudication on merits with a direction to the assessee to plead and prove its case forthwith.
The appeal stands allowed for statistical purposes. Order pronounced on 17th December, 2025.