MOHAMMAD SHAHID,BILASPUR V. ASSESSING OFFICER, BILASPUR

ITA 15/RPR/2026

AI Insights

The case involves Mohammad Shahid, a small shop owner engaged in selling and repairing furniture, who appealed against the order of the CIT(Appeals)/NFAC for the assessment year 2013-14. The primary issue was the addition of Rs.12,68,800 to the assessee's income, which the A.O claimed was unexplained cash deposits in the assessee's savings account. The assessee argued that these deposits were from his business income, made entirely in cash. The CIT(Appeals) upheld the A.O's decision without adequately verifying the assessee's submissions. The Tribunal found that the CIT(Appeals) did not properly inquire into the matter as required under Section 250 (4) & (6) of the Income Tax Act, leading to the remand of the case to the A.O for a detailed examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833583 (ITAT-RAIPUR)
• Duration Of Justice: 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 16-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: S.K SHARMA
• Keywords: Set aside; Principle of natural justice

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.15/RPR/2026 Ǔनधा[रण वष[ /Assessment Year : 2013-14 Mohammad Shahid Near Teachers Colony, Gauri Ganesh Colony, Shubham Vihar, Ward-14, Mangla, Bilaspur (C.G.) PAN: DEMPS0058M .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer, Ward-1(2), Billaspur (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri S.K Sharma, Advocate Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 05.02.2026 घोषणा कȧ तारȣख / Date of Pronouncement : 06.02.2026 Printed from counselvise.com 2 Mohammad Shahid Vs. ITO, Ward-1(2), Bilaspur (C.G.) ITA No.15/RPR/2026 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 12.11.2025 for the assessment year 2013-14 as per the grounds of appeal on record. 2. The Ld. Counsel for the assessee submitted that the assessee is illiterate and he is running a small shop of selling and repair and maintenance of furniture. It was submitted by the Ld. Counsel that all the transactions have been made by the assessee in his business through cash and he has no current account and he used only savings bank account for his business. It was submitted by the Ld. Counsel that out of the income derived from selling, repair and maintenance of furniture, the assessee had made cash deposits of Rs.12,68,800/- in his savings bank account. In other words, the source of cash deposits were from his source of income as submitted/disclosed before the Department. The A.O opined however that the assessee has failed to explain the nature and source of the said cash deposits and accordingly, made an addition of Rs.12,68,800/- in the hands of the assessee. Printed from counselvise.com 3 Mohammad Shahid Vs. ITO, Ward-1(2), Bilaspur (C.G.) ITA No.15/RPR/2026 3. The Ld. CIT(Appeals)/NFAC dismissed the appeal of the assessee on the ground that the nature and source of the cash deposit was not explained by the assessee upholding merely the findings of the A.O. 4. I have heard the submissions of the parties herein and carefully perused the materials available on record. On careful perusal of the order of the Ld. CIT(Appeals)/NFAC, it transpires that the assesse had made submissions a/w. various documents which were not verified and inquired by the Ld. CIT(Appeals)/NFAC in terms with Section 250 (4) & (6) of the Act. In order to balance the scales of justice, it would be appropriate to remand the matter to the file of the A.O to verify the contention of the assessee and factually decide through a speaking order regarding correctness of the contention raised by the assessee while complying with the principles of natural justice. 5. In view of the aforesaid facts, the order of the Ld. CIT(Appeals)/NFAC is set aside and remanded to the file of the A.O to pass fresh assessment order as per aforestated directions. Printed from counselvise.com 4 Mohammad Shahid Vs. ITO, Ward-1(2), Bilaspur (C.G.) ITA No.15/RPR/2026 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 06th day of February, 2026. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 06th February, 2026. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 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 "