Hansraj Jain Vs ITO (ITAT Bangalore)
Wrong Date, Wrong Addition: ITAT Restores Cash Deposit Issue Where Bank Entry Was on 15-11-2016, Not 05-11-2016
Bangalore ITAT allowed Assessee’s appeal for statistical purposes and restored the issue of addition of ₹34,49,310 u/s 68 to the file of AO for fresh verification after noting a fundamental factual error in the assessment. Assessee, a jeweller, was subjected to addition on the premise that cash of ₹34.49 lakh was deposited in Yes Bank on 05.11.2016 when sufficient cash balance was allegedly not available.
Tribunal observed that bank statement clearly showed that the cash deposit of ₹34,49,310 was made on 15.11.2016 and not on 05.11.2016, and the incorrect date arose due to a clerical error by the accountant while entering the transaction in Tally based on the pay-in slip. On the correct date of deposit, Assessee had adequate cash balance as per cash book, supported by month-wise sales, VAT returns and invoices.
Tribunal held that the real issue was not the deposit per se but whether Assessee had sufficient and genuine cash in hand on 15.11.2016. Since neither AO nor CIT(A) verified the correctness of sales, source of cash receipts, gift received from mother, and availability of cash on the actual date of deposit, the matter required fresh examination. Accordingly, ITAT remanded the issue to AO with a direction to verify genuineness of sales and source of cash, and delete the addition if cash availability is proved. Appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. This appeal is filed by Hansraj Jain (the assessee/appellant) for the assessment year 2017-18 against the appellate order passed by the National Faceless Appeal Centre, Delhi (NFAC) [ld. CIT(A)] dated 16.6.2025 wherein the appeal filed by the assessee against the assessment order passed u/s. 143(3) of the Income-tax Act, 1961 [the Act] dated 6.12.2019 by the ITO, Ward 2(2)(2), Bengaluru was dismissed.
