AMAN JAIN,AMBALA CANTT V. INCOME TAX OFFICER, WARD-1, AMBALA, AMBALA

ITA 896/CHANDI/2025

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The case involves Shri Aman Jain, a trader of edible items, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming an addition of Rs. 1 Lakh to his income for the Assessment Year 2017-18. The addition was initially made by the Assessing Officer following the reopening of the assessee's case, based on information that he had deposited Rs. 36.42 Lacs in cash during the demonetization period. The assessee contended that only Rs. 1 Lakh was in Specified Bank Notes (SBN) and that the rest was from legitimate business sales. The Tribunal, after reviewing the day-wise cash summary provided by the assessee, concluded that the deposits were indeed from the cash available with the assessee and recorded in his books, thus allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787188 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 10-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOATENLA JOINT LD.
• Assessee Lawyers: ROHIT GOEL LD
• Section: 147

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.896/CHANDI/2025 (िनधाŊरणवषŊ / Assessment Year: 2017-18) Shri Aman Jain 5220/21 Gurbazar Opp. Jain Mandir, Sadar Ambala, Ambala Cantt, Haryana-133001 बनाम/ Vs. ITO Ward-1 Ambala Cantt. - 134003 ˕ायी लेखा सं./जीआइआरसं./PAN/GIR No. AKJPJ-6782-H (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎ कीओरसे/ Appellant by : Shri Rohit Goel (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Smt. Moatenla (Joint CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 18-11-2025 घोषणाकीतारीख /Date of Pronouncement : 19/11/2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 27-03-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 147 r.w.s. 144B of the Act on 26-03-2022. The registry has noted delay of 40 days in the appeal which stand condoned. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. Printed from counselvise.com 2 2. The assessee is stated to be engaged in trading of edible items. Pursuant to receipt of information that the assessee deposited cash of Rs.36.42 Lacs during demonetization period, the assessee’s case was reopened. However, it transpired that the quantum of Specified Bank Notes (SBN) was Rs.1 Lacs only. During the course of assessment proceedings, the assessee initially stated that the cash was deposited out of its business sales proceeds received between 11-11-2016 to 15- 11-2016 but later on changed its stand to state that the cash was sourced out of cash-in-hand as available on 08-11-2016. However, Ld. AO rejected the explanation and made addition of Rs.1 Lacs. 3. During first appeal, the assessee furnished day-wise cash summary from 09-11-2016 to 16-11-2016 to demonstrate that the cash was deposited out of available cash-in-hand. However, Ld. CIT(A) confirmed the addition of Rs.1 Lacs against which the assessee is in further appeal before us. 4. It emerges that the assessee is engaged in business activities and it has duly maintained cash book. As per day-wise cash summary from 09-11-2016 to 16-11-2016, as submitted by the assessee, it could be seen that all the deposits are sourced out of cash as available with the assessee and the deposits have duly been recorded in the regular books of accounts. This being so, the impugned addition of Rs.1 Lacs is not sustainable on facts. We order so. Printed from counselvise.com 3 5. The appeal stand allowed. Order pronounced on 19/11/2025. Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 19/11/2025 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "