MOHAMMAD SHAHID,BILASPUR vs. ASSESSING OFFICER, BILASPUR

The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 12.11.2025 for the assessment year 2013-14 as per the grounds of appeal on record.

The Ld. Counsel for the assessee submitted that the assessee is illiterate and he is running a small shop of selling and repair and maintenance of furniture. It was submitted by the Ld. Counsel that all the transactions have been made by the assessee in his business through cash and he has no current account and he used only savings bank account for his business. It was submitted by the Ld. Counsel that out of the income derived from selling, repair and maintenance of furniture, the assessee had made cash deposits of Rs.12,68,800/- in his savings bank account. In other words, the source of cash deposits were from his source of income as submitted/disclosed before the Department. The A.O opined however that the assessee has failed to explain the nature and source of the said cash deposits and accordingly, made an addition of Rs.12,68,800/- in the hands of the assessee.

The Ld. CIT(Appeals)/NFAC dismissed the appeal of the assessee on the ground that the nature and source of the cash deposit was not explained by the assessee upholding merely the findings of the A.O.

I have heard the submissions of the parties herein and carefully perused the materials available on record. On careful perusal of the order of the Ld. CIT(Appeals)/NFAC, it transpires that the assesse had made submissions a/w. various documents which were not verified and inquired by the Ld. CIT(Appeals)/NFAC in terms with Section 250 (4) & (6) of the Act. In order to balance the scales of justice, it would be appropriate to remand the matter to the file of the A.O to verify the contention of the assessee and factually decide through a speaking order regarding correctness of the contention raised by the assessee while complying with the principles of natural justice.