VIKRAM KHANNA,AMRITSAR V. ITO, INCOME TAX DEPARTMENT

ITA 19/ASR/2024

AI Insights

The case involves Vikram Khanna, the proprietor of Vikram Enterprises, who appealed against the order of the CIT(A) National Faceless Appeal Centre, Delhi, which upheld the addition of Rs.16.58 lacs to his income for the assessment year 2017-18. This addition was initially made by the Assessing Officer, Ward 2(3), Amritsar, due to cash deposits made during the demonetization period, which were not satisfactorily explained. The Tribunal noted discrepancies in the figures cited by the Assessing Officer and acknowledged that the assessee's business was incorrectly stated as dealing in jewelry, whereas it was actually in sugar trading. The Tribunal remanded the case back to the Assessing Officer for a thorough examination of the cash book and other relevant documents to ascertain the source of the deposits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716568 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 16-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (HYBRID COURT) BEFORE SH. MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER I.T.A. No. 19/Asr/2024 Assessment Year: 2017-18 Vikram Khanna Vikram Enterprises, Dal Mandi, Amritsar Punjab 143001 [PAN: ABFPK 6641K] (Appellant) Vs. Income Tax Officer, Income Tax Department Amritsar (Respondent) Appellant by Respondent by : : Sh. Kundan Pandey Sh. Charan Dass, Sr. D. R. Date of Hearing Date of Pronouncement : : 15.07.2025 18.08.2025 ORDER Per Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated 24.11.2023 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the A.O., Ward 2(3), Amritsar dated 31.12.2019 passed u/s 143(3) of the I.T. Act, 1961. Printed from counselvise.com 2 I.T.A. No. 19/Asr/2024 Assessment Year: 2017-18 2. The assessee has taken nine grounds of appeal in Form No. 36 and all the grounds relates to one single issue of an addition of Rs.16.58 lacs being cash deposited in bank account by the assessee during the demonetization period. 3. Brief facts emerging from records are that the assessee is engaged in the business of sugar trading (wrongly stated as a jewellery (jewellery shop) under the trade name of M/s Vikram Enterprises located at Dal Mandi, Amritsar. The return of income filed by the assessee disclosing a total income of Rs.7,34,840/- has been selected for complete scrutiny under CASS. In course of scrutiny replies were filed by the assessee along with the cash book of Vikram Enterprises, by the help of which the SBN deposited in bank account where attempted to be explained. However, the explanation of the assessee was not to the satisfaction of the Assessing Officer and the assessment was completed on a total income of Rs. 23.93 lacs (which included an addition of Rs.16.58 lacs being cash deposited during the demonetization period). 4. The matter was carried in appeal and the ld. CIT(A) dismissed the appeal after considering the appellant’s submissions filed during the course of appellate proceedings. It was submitted by the assessee that the Assessing Officer has never looked into the papers and documents submitted by the assessee in course of assessment proceedings and particularly pointed out to the defect that it is mentioned in the assessment order that the assessee is engaged in the business of jewellery but Printed from counselvise.com 3 I.T.A. No. 19/Asr/2024 Assessment Year: 2017-18 actually the assessee is a business-man trading in sugar (not at all connected with jewellery). 5. The ld. AR of the assessee in course of hearing before the Tribunal pointed out that the factual aspects narrated by the AO in the assessment order are in-correct, considering that the figures of cash deposits on various dates does not match with the figures contained in the assessment order. He pointed out that the total SBN deposits was Rs.14.89 lacs (and not Rs.16.58) lacs as stated by the AO). He explained that the cash deposits in bank during demonetization period are reflected in the regular cash book and are sourced out of regular sale proceeds and he submits that the books of accounts has not been given any cognizance, neither by the AO, nor by the ld. first appellate authority, and prayed for deleting the addition. 6. The ld. DR relied on the order of the ld. CIT(A) and also pointed out that in the instant case, cash book needs to be thoroughly examined which has not been done in this case because the ld. first appellate authority has specifically observed that the assessee has only produce cash book for the period of 01.10.2016 to 21.12.2016 and as such the business transaction of relating to earlier period and subsequent period has never been examined. However, he has no objection if the matter is remanded back to the files of the AO for fresh assessment, considering the fact that the assessee Printed from counselvise.com 4 I.T.A. No. 19/Asr/2024 Assessment Year: 2017-18 is actually engaged in the business of trading of sugar and (not in the business of jewellery) as stated in the assessment order. 7. We have heard the rival submissions and considered the materials on record and we find that this issue of cash deposits during the demonetization period is to be explained through regular cash book which needs to be examined along with the bank statements supported by purchase and sales invoices and stock book records. 8. As such, in the interest of justice, we set aside the matter back to the files of the Assessing Officer for fresh assessment on merits of the case after examination of proper books of account and documentary evidences to be submitted by the assessee. The assessee is also directed to fully cooperate in fresh assessment proceedings and produce the cash book along with the supporting documentary evidences and other details to explain the cash deposited in bank account during the demonetization period. The assessee will be allowed proper and reasonable opportunity of being heard. 9. We have not expressed any opinion on merits of the case and all legal issues are kept open. Printed from counselvise.com 5 I.T.A. No. 19/Asr/2024 Assessment Year: 2017-18 10. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 18.08.2025. Sd/- Sd/- (Manoj Kumar Aggarwal) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1)The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order Printed from counselvise.com "