JAYASHREE SANJAY JADHAV,MUMBAI CITY V. ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE 42 (2) (3), MUMBAI , MUMBAI

ITA 5660/MUM/2025

AI Insights

This case involves Ms. Jayashree Sanjay Jadhav, who appealed against the order of the Commissioner of Income Tax (Appeals) affirming the addition of Rs.15,04,500 under section 69A of the Income Tax Act, 1961. The addition was initially made by the AO following a scrutiny assessment that focused on cash deposits during the demonetization period, transactions in immovable property, and investments under section 80C. The Tribunal's decision highlighted that the AO exceeded the scope of the scrutiny by including deposits made outside the specified period, leading to the allowance of the appeal in part.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786782 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 11-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIKAS CHANDRA; LD.
• Assessee Lawyers: ANANT PAI; LD
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No.5660/M/2025 Assessment Year: 2017-18 Ms. Jayashree Sanjay Jadhav, H 11/703, Palm Acres CHS Ltd. Pratiksha Nagar, Sion, Mumbai – 400022. PAN: ADGPJ9973J Vs. ACIT, Circle 42(2)(3), Kautalya Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai - 400051 (Appellant) (Respondent) Present for: Assessee by : Shri Anant Pai, Ld. A.R. Revenue by : Shri Vikas Chandra, Ld. Sr. D.R. Date of Hearing : 17.11.2025 Date of Pronouncement : 17.11.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 31.07.2025, impugned herein, passed by Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT (A) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2008-09. 2. Admittedly, the case of the Assessee was selected for scrutiny for the following issues: (i) cash deposit in the bank account during demonetization period from 09.11.2016 to 31.12.2016. (ii) transactions made in immovable property and (iii) investment of Rs.1,50,000/- u/s 80C. Printed from counselvise.com ITA No.5660/M/2025 Ms. Jayashree Sanjay Jadhav 2 However, the assessment proceedings resulted in passing the order dated 24.12.2019 u/s 143(3) and making the addition of Rs.15,04,500/- u/s 69A of the Act on account of amount deposited by the Assessee in its bank account. 3. The Assessee though being aggrieved challenged the said addition by filing first appeal before the Ld. Commissioner, however, did not get any relief as the Ld. Commissioner vide impugned order affirmed the addition by dismissing the appeal. Thus, the Assessee being aggrieved has challenged the aforesaid addition. 4. Having heard the parties and perused the material available on record. Admittedly, the authorities below were empowered to examine the cash deposits made during the period from 09.11.2016 to 31.12.2016 only, as the case was selected for limited scrutiny of the issues mentioned above and was not converted complete scrutiny. However, the AO still made the addition of Rs.15,04,500/- by considering the deposit made even outside the purview of the demonetization period and thus, this court is inclined to delete the addition under consideration, however, subject to verification by the AO to extent of cash deposit by the assessee during 09.11.2016 to 31.12.2016 only. The AO is thus directed to restrict the addition to the extent of cash deposit made by the Assessee, during demonetization period only. Printed from counselvise.com ITA No.5660/M/2025 Ms. Jayashree Sanjay Jadhav 3 5. In the result, the Assessee’s appeal is allowed in the said terms. Order pronounced in the open court on 17.11.2025. (NARENDER KUMAR CHOUDHRY) JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. Printed from counselvise.com "