ITO Vs Keshavlal Raichand & Sons (ITAT Mumbai)
The Income Tax Appellate Tribunal Mumbai in “Income Tax Officer v. Keshavlal Raichand & Sons, ITA/6813/MUM/2025” has dismissed Revenue’s appeal filed against the Respondent company which is a pharmaceutical supplies dealer. The Assessing Officer had made additions of Rs. 2.61 crores u/s 68 of the Income Tax Act 1961 treating cash deposits (made during demonetization period) as unexplained income which was deleted by the National Faceless Appeals Centre (NFAC) in first appeal. Since the Respondent Company had proved all cash income by documentation showing that such cash was received on account of daily counter sales and there was consistent recording in the books of accounts, the Tribunal held that the Assessing Officer’s view was incorrect and upheld the view of the NFAC in first appeal resulting in a decision in favor of the Respondent Company.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present appeal has been preferred by the Revenue and the cross objection has been filed by the assessee against the order dated 25/08/2025 passed by the learned Commissioner of Income Tax (Appeals), NFAC, Delhi, arising out of the reassessment framed under section 147 read with section 144B of the Income Tax Act, 1961 for the assessment year 2017-18, wherein the Revenue has challenged the deletion of addition of Rs.2,61,89,000/- made under section 68 on account of cash deposits, whereas the assessee, by way of cross objection, has merely supported the order of the learned first appellate authority.
