HOTEL FAKIRCHAND DHABA,NAGPUR vs. INCOME TAX OFFICER, WARD-3(4), NAGPUR

In its appeal, the assessee has raised following grounds:–

Brief facts of the case are that the assessee is running business of Bar and Restaurant. He has deposited ` 1.50 lakh cash in the bank account. During the assessment proceedings, the assessee has not been able to substantiate cash deposit, however, it is submitted that cash deposits are from sales while running the business of Bar and Restaurant. The Assessing Officer, however, has denied the claim of expenditure made by the assessee.

When the matter was carried before the learned first appellate authority, the learned CIT(A) also confirmed the order so passed by the Assessing Officer.

I have heard the arguments of the learned Departmental Representative, perused the material available on record and gone through the orders of the authorities below. I find that the assessee has specifically mentioned that cash deposits are sales from running the business of Bar and Restaurant wherein generally the customers pay cash in lieu of the consumption of food, liquor, etc. Therefore, I am of the opinion that the amount so received by the assessee on sale from running the business of bar and restaurants and being a meagre amount of ` 1.50 lakh, the same cannot be doubted. According to my opinion, the learned CIT(A) was not justified in upholding the order passed by the Assessing Officer while confirming the addition. Thus, I set aside the impugned order passed by the learned CIT(A) and allow the grounds of appeal raised by the assessee.

In the result, appeal filed by the assessee is allowed. Order pronounced in the open Court on 21/08/2024