ABHISHEK SHUKLA, RAIPUR,RAIPUR V. ACIT, RAIPUR, RAIPUR

ITA 459/RPR/2025

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The case involves Abhishek Shukla, a salaried employee and agriculturist, who appealed against the order of the CIT(Appeals)/NFAC, Delhi, which sustained an addition of Rs.23,82,220 to his income for the assessment year 2017-18 under section 68 of the Income Tax Act. The addition was based on cash deposits made during the demonetization period, which the Assessing Officer (A.O) questioned. The Tribunal noted that the assessee had provided sufficient documentary evidence, including bank statements and income tax returns, to substantiate the source of the deposits as agricultural income and loan repayments. However, the CIT(Appeals) dismissed the appeal without proper examination of these documents, leading to the Tribunal's decision to set aside the CIT(Appeals)'s order and allow the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775252 (ITAT-RAIPUR)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 28-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: PRAFULLA PENDSE
• Keywords: Set aside; Corroborative evidences; Principle of natural justice; FORM 26AS
• Section: 142(1); 68; 131; 133(6)

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी पाथ[ सारथी चौधरȣ, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं./ITA No.459/RPR/2025 Ǔनधा[रण वष[ /Assessment Year : 2017-18 Abhishek Shukla Sadar Bazar, Bhatapara, District Baloda Bazar, Raipur-493 118 (C.G.) PAN: AWTPS6185K .......अपीलाथȸ / Appellant बनाम / V/s. The Assistant Commissioner of Income Tax, Circle-1(1), Raipur (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri Prafulla Pendse, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 03.09.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 10.09.2025 Printed from counselvise.com 2 Abhishek Shukla Vs. ACIT, Circle-1(1), Raipur (C.G.) ITA No.459/RPR/2025 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, Delhi dated 27.05.2025 for the assessment year 2017-18 as per the following grounds of appeal: “1. That the order of Ld. CIT(A) is bad in law as well as on facts and the entire addition of Rs.23,82,220/- so sustained by the Ld. CIT(A) is accordingly liable to be deleted. 2. In the facts and circumstances of the case, the Ld. CIT(A) has grossly erred in sustaining addition of Rs.23,82,220/- under section 68 of the income tax act without considering the facts as well as cash flow summary already submitted on record, which undisputedly justifies the availability' of cash with the appellant. 3. In the facts and circumstances of the case, the Ld. CIT(A) has grossly erred in sustaining addition of Rs.23,82,220/- under section 68 of the income tax act, contrary to the provisions of Law; because maintenance of books of accounts is a sine-qua-non for making such addition and the appellant being a salaried employee is not required by Law to maintain any books of accounts. 4. In the facts and circumstances of the case and in law, the CIT(A) grossly erred in sustaining addition of Rs.23,82,220/- without bringing any evidence on record to substantiate that cash withdrawn from KCC Loan Account was spent by the appellant and therefore, was not available with the appellant. 5. In the facts and circumstances of the case and in law, the CIT(A) has erred in sustaining the addition by relying on the statement recorded under section 131 without providing copy of the same to the appellant in spite of specific request, thereby violating the principles of natural justice. 6. The above grounds are independent and without prejudice to one and another. Printed from counselvise.com 3 Abhishek Shukla Vs. ACIT, Circle-1(1), Raipur (C.G.) ITA No.459/RPR/2025 7. The appellant craves leave to urge, add, amend, alter, enlarge, modify, substitute, delete or withdraw any of the ground or ground and to adduce fresh evidence at the time of hearing of the appeal.” 2. The brief facts in this case are that at the assessment stage, it was noticed by the A.O that the assessee had deposited of Rs.26,19,000/- in the bank during demonetization period. The A.O issued notice u/s. 133 (6) of the Income Tax Act, 1961 (for short ‘the Act’) to the Dena Bank on 29.04.2019 and notices u/s. 142(1) of the Act were issued on 03.05.2019 and 14.05.2019. In response to those statutory notices, the assessee replied that he is a salaried employee in a private firm and engaged in agriculture activities at Village : Kumharkhan, Tehsil : Bhatapara. The assesse has also enclosed copy of bank statement, copy of Form 16, Form 26AS and ITRs. According to the assessee, he had deposited Rs.26,97,000/- in cash in HDFC Bank and Dena Bank during demonetization and withdrawn Rs.24,40,000/- cash from KCC loan on 25.04.2016 from Dena Bank. The assessee had contended that since loan amount was not utilized, hence, loan was repaid by depositing cash into KCC loan account of Dena Bank during demonetization period. It is pertinent to mention that during the course of assessment, notice u/s. 133(6) of the Act was issued to the Dena Bank, Sadar Bazar, Bhatapara on 11.07.2019. The reply submitted by the said bank makes it clear that the assessee did have agricultural income to the tune of Rs.18 lacs per Printed from counselvise.com 4 Abhishek Shukla Vs. ACIT, Circle-1(1), Raipur (C.G.) ITA No.459/RPR/2025 annum and on such basis, they had sanctioned KCC loan to the tune of Rs.24 lacs to the assessee. The said reply of the Dena Bank dated 26.07.2019 is made part of this order and extracted as follows: Printed from counselvise.com 5 Abhishek Shukla Vs. ACIT, Circle-1(1), Raipur (C.G.) ITA No.459/RPR/2025 3. The Ld.CIT(Appeals)/NFAC had dismissed the appeal of the assessee on the ground that the assessee had not furnished any documentary evidence to prove that the source of such cash deposits was from loan for the development of agricultural land. That when the assessee had submitted all the bank statement, Form-16, Form-26AS and ITRs before the department, and when the A.O himself accepted that the assessee was having agricultural income of Rs.18 lacs per annum, on the basis of which, Dena bank had provided loan to the assessee which is also evident from bank’s reply itself, therefore, it was all the more important for the Ld. CIT(Appeals)/NFAC to conduct enquiry in terms with Section 250(4) & (6) of the Act, if it did not believe those documentary evidences which were placed on record before the said authority. That without conducting any verification, without dismantling the statements given by the bank on summary basis, the Ld. CIT(Appeals)/NFAC had sustained the addition holding that no supporting evidences were furnished by the assessee. But, the facts remain that all the evidences were furnished by the assessee and even bank statement and reply was filed before the Ld. CIT(Appeals)/NFAC and without doubting those statements or without negating those statements, it was not appropriate for the First Appellate Authority to dismiss the appeal of the assessee. Printed from counselvise.com 6 Abhishek Shukla Vs. ACIT, Circle-1(1), Raipur (C.G.) ITA No.459/RPR/2025 4. Further, it is very much emanating from facts on record that the assessee was having agricultural income and on that basis, for development purpose of agricultural land, he had procured certain amount as loan, which in fact, was deposited back for repayment purpose in the account of Dena Bank since the same was not utilized. No evidence has been brought on record by the Ld. CIT(Appeals)/NFAC to controvert these facts on record. The order of the Ld. CIT(Appeals)/NFAC pertains to the character of guess work and surmises instead of proper verification which was mandated by the statute. Accordingly, I set aside the order of the Ld. CIT(Appeals)/NFAC and direct the A.O to delete the addition from the hands of the assessee. 5. As per the above terms grounds of appeal raised by the assessee are allowed. 6. In the result, appeal of the assessee is allowed. Order pronounced in open court on 10th day of September, 2025. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 10th September, 2025. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. Printed from counselvise.com 7 Abhishek Shukla Vs. ACIT, Circle-1(1), Raipur (C.G.) ITA No.459/RPR/2025 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, “एक-सदèय” बɅच, रायपुर / DR, ITAT, “SMC” Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur Printed from counselvise.com "