Space 4 Business Solutions P. Ltd. vs Deputy Commissioner Of Income Tax

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) (hereinafter referred to as ‘the Act’) dated 26.09.2025, for AY 2017-18.

The assessee in appeal has assailed addition of Rs.35,61,000/- u/s. 69A r.w.s. 115BBE of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’) on account of cash deposit during demonetization period.

The case of assessee is that the cash deposits in the bank were out of cash business receipts. The assessee has filed a paper book containing 298 pages, inter alia containing VAT Returns to show that the assessee is carrying out business activity, bank account details, audited financials, etc. However, the assessee has not furnished month wise details of cash receipts and cash deposits in the bank. Further, it is not emanating from records the nature of assessee’s business. Thus, on the basis of documentary evidences filed by the assessee it cannot be made out that the cash deposits in the bank were during normal course of business. Taking into consideration entire facts of the case, I deem it appropriate to restore the issue back to the AO for denovo adjudication, in accordance with law after affording reasonable opportunity of making submissions to the assessee.

In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose.