PRAHALLAD PRUSTY,KENDRAPARA V. INCOME TAX OFFICER, KENDRAPARA WARD, KENDRAPARA, KENDRAPARA

CO 7/CTK/2025

AI Insights

The case involves an appeal by the ITO Kendrapara Ward against the order of the CIT(A), which had deleted certain additions made by the AO for the assessment year 2017-2018. The additions pertained to cash deposits in the assessee's bank account and entries related to sundry creditors. The CIT(A) had found that the assessee provided sufficient evidence, including an affidavit and verified books of accounts, which were not adequately challenged by the AO. The Tribunal, after considering the submissions and the evidence, upheld the CIT(A)'s decision and dismissed both the appeal and the cross objection filed by the assessee, which supported the CIT(A)'s order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708763 (ITAT-CUTTACK)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2017-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NISHANTH RAO B
• Assessee Lawyers: MOHIT SHETH

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.274/CTK/2025 (नििाारण वर्ा / Assessment Year : 2017-2018) ITO Kendrapara Ward, Kendrapara Vs Prahallad Prusty, At-Kasoti, Pandiri, Duhuria, Kendrapara-754250 PAN No. : AHDPP 6304 J (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) AND Cross Objection No.07/CTK/2025 (Arising out of ITA No.274/CTK/2025) (नििाारण वर्ा / Assessment Year : 2017-2018) Prahallad Prusty, At-Kasoti, Pandiri, Duhuria, Kendrapara-754250 Vs ITO Kendrapara Ward, Kendrapara PAN No. : AHDPP 6304 J (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) राजस्व की ओर से /Revenue by : Shri Nishanth Rao B, Sr.DR नििााररती की ओर से /Assessee by : Shri Mohit Sheth, Advocate सुनवाई की तारीख / Date of Hearing : 16/07/2025 घोषणा की तारीख/Date of Pronouncement : 16/07/2025 आदेश / O R D E R Per Bench : The revenue has filed the instant appeal against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 06.03.2025, for the assessment year 2017-2018. The assessee has also filed Cross Objection supporting to the order passed by the ld.CIT(A). 2. It was submitted by the ld Sr. DR that in the course of assessment two additions have been made by the ld.AO representing the cash deposited in the assessee’s bank account maintained with State Bank of ITA No.274/CTK/2025 & CO No.07/CTK/2025 2 India at Kendrapara and sundry creditors as recorded in the books of the assessee. It was the submission that the ld. CIT(A) has deleted the addition without considering the fact that it is for the assessee to prove the transactions in respect of the cash deposited in the bank account. It was further submitted that the creditors have not been shown to be genuine. It was the prayer that the order of the ld. CIT(A) be reversed and that of the AO be restored. 3. In reply, ld. AR vehemently supported the order of the ld. CIT(A). 4. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that in para 8.2, the ld. CIT(A) has categorically recorded a finding that the assessee has filed an affidavit stating that books of accounts were physically furnished before the AO. In para 8.3, specifically mentioned that the AO was requested for his comments on claims made by the assessee but the AO has not given any comments nor filed any remand report. Consequently, the ld. CIT(A) verified the books and tallied the same with the cash book and has found that some amount deposited in the bank account were out of sale proceeds of the assessee. Ld.CIT(A) in para 9.5 has mentioned that the receipt from cash sales during demonetization and receipts from debtors appears to be during regular course of business and the book results shown by the assessee appear to be in order. Ld.CIT(A) after verification of the books has deleted the addition. The revenue admittedly has not been able to dislodge any of the findings of fact as brought out by the ld.CIT(A) in his order. This being so, we have no reason to interfere with ITA No.274/CTK/2025 & CO No.07/CTK/2025 3 the order of the ld. CIT(A). Consequently, the order of the ld.CIT(A) is upheld. 5. As we have already upheld the order of the ld.CIT(A), the cross objection of the assessee which is supportive to the order of the ld.CIT(A), has become infructuous and the same stands dismissed. 6. In the result, appeal of the revenue and cross objection of the assessee are dismissed. Order dictated and pronounced in the open court on 16/07/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 16/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// "