ANKIT AGRAWAL,RUDRAPUR, UTTRAKHAND vs. OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX, HALDWANI

This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 2, Chennai’s order dated 23.09.2025 having DIN and order no. ITBA/APL/S/250/2025-26/1081048847(1), involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

The assessee’s/appellant’s sole substantive ground herein is directed against the CIT(A)’s lower appellate discussion partly upholding the Assessing Officer’s assessment findings treating his cash deposits of Rs.16.56 lakhs as unexplained to the tune of Rs.16.44 lakhs in issue.

Both the learned representatives vehemently reiterate their respective stands against and in support of the impugned addition. There does not appear to be much a dispute between the parties that the assessee/appellant is engaged in the business of trading in food grains in the name and style of M/s. Singhal Agro Products, who had also declared his income of Rs.17,50,250/-. That being the case, the necessary inference which would prima facie arise is that although he has failed to plead and prove the corresponding reconciliation and verification of the impugned cash deposits as forming part of business turnover/cash sales to the entire satisfaction of both the learned lower authorities; its credit could not be denied to him as well.

Faced with this situation, we deem it appropriate in these peculiar facts that a lumpsum addition of Rs. 1 lakh only in the 2 | P a g e assessee’s hands would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.15.44 lakhs in other words.