MIKUL MAHESH SHAH,MUMBAI V. INCOME TAX OFFICER (ITO), MUMBAI

SA 49/MUM/2025

AI Insights

The case involves Mikul Mahesh Shah, who appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, which upheld the addition of Rs. 13,44,000 to his income for the Assessment Year 2017-18. This amount was deposited in cash in his account with Bank of Baroda during the demonetization period. The primary contention was the non-consideration of several CBDT Circulars/Instructions by the lower authorities, which pertained to the treatment of cash deposits made during the demonetization period. The Tribunal found merit in the assessee's appeal, leading to a remand of the case to the AO for a detailed examination of the deposits under the specified circulars.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789914 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 4 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 27-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 23-03-2025
• Laws Referred To: CBDT Circulars/Instructions
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANNAVARAN KOSURI; AR
• Assessee Lawyers: TAZEEN T. KHAN; AR
• Keywords: Opportunity of being heard; Application of stay

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) AND SMT. RENU JAUHRI (ACCOUNTANT MEMBER) I.T.A. No. 1286/Mum/2025 Assessment Year: 2017-18 & S.A. No. 49/Mum/2025 Assessment Year: 2017-18 Mikul Mahesh Shah 1st Floor, H. Kantilal Compound Andheri, Kurla Road Andheri East Mumbai - 400072 [PAN: ANJPS9848Q] Vs. Income Tax Officer (ITO) (Appellant) (Respondent) Appellant by Ms. Tazeen T. Khan, A/R Respondent by Shri Annavaran Kosuri, Sr. A/R Date of Hearing 19.11.2025 Date of Pronouncement 27.11.2025 ORDER Per Bench: The present appeal by the assessee is filed against the order dated 27/05/2024 passed by the NFAC, Delhi [hereinafter ‘the Ld. CIT(A)’] for AY 2017-18. 2. The Ld. AR submitted that, the assessee maintained his accounts with Bank of Baroda and had deposited Rs. 13,44,000/- in cash during the period 09/11/2016 to 31/12/2016. The Ld. AO noted that the assessee did not file any return of income filed for the year under consideration and, therefore, the addition was made in hands of the assessee. Printed from counselvise.com 2 I.T.A. No. 1286/Mum/2025 & S.A. No. 49/Mum/2025 Aggrieved by the order of the Ld. AO, the assessee preferred appeal before the Ld. CIT(A). 3. The Ld. CIT(A) upheld the addition made by the Ld. AO. We have considered the submissions advanced by both the sides in light of the records placed before us. 4. It is noted that the authorities below has not considered the following CBDT Circulars/Instructions, to verify the cash deposited by the assessee :- a) Instruction 3/2017, issued on February 21, 2017. b) Instruction No. 4/2017 dated 3rd March, 2017. c) Circular F. No. 225/363/2017 – ITA. II, dated 15/11/2017. d) Circular F.no.225/145/2019-ITA.II dated 09/08/2019. 4.2. The Ld. AO is directed to verify the demonetized cash based on the applicable Circular specific to the assessee. The assessee is directed to furnish PAN and other details of the depositors if circumstances so warrant, in order to assist the Ld. AO to consider the claim in accordance with law. Needless to say that proper opportunity of being heard must be granted to the assessee in accordance with law. Accordingly, Grounds raised by the assessee stand partly allowed for statistical purposes. In the result, appeal filed by the assesse stands partly allowed for statistical purposes. Printed from counselvise.com 3 I.T.A. No. 1286/Mum/2025 & S.A. No. 49/Mum/2025 As we have remitted the quantum appeal to the Ld. AO, the stay application filed by the assessee becomes infructuous. Order pronounced in open court on 27/11/2025 Sd/- Sd/- (RENU JAUHRI5) (BEENA PILLAI) Accountant Member Judicial Member Mumbai Dated: 27/11/2025 SC Sr. P.S. Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order (Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "