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Judgment
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
This appeal arises from order dated 25.11.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by Ld. CIT(A)-NFAC. In this case, the Ld. AO has passed an order u/s 147 r.w.s. 144 with respect to cash deposit of Rs.85,57,570/- added u/s 69A of the Act. The aggrieved assessee approached the CIT(A) where also he could not succeed on the basis of very brief findings on pages 11 & 12 of the impugned order. The Ld. CIT(A) has held that the assessee did not discharge the legal burden of proof in terms of providing a valid explanation for the deposits shown against his name. Also, the Ld. CIT(A) has held that the claim of the assessee for presumptive taxations u/s 44AD of the Act could not be believed since no valid return of income was filed. Needless to say, the action of Ld. AO was upheld.
The aggrieved assessee has approached the ITAT with grounds of appeal challenging the action of authorities below.
Before us, the Ld. AR stated that the assessee filed considerable documents but the same were not considered by either of the authorities below. In fact, while the Ld. CIT(A) has extracted the assessee’s submissions but, it was argued, that he has paid little attention to the same. It was the submission that in case the facts would have been considered then probably there would be no adverse order against the assessee, since the entire receipts/deposits in the bank account have been added without considering that the entire quantum of receipts cannot be the income of the assessee.
The ld. DR relied on the orders of the authorities below.
We have considered the arguments of Ld. AR/DR and have gone through the records before us. It is clear that there has been less than the desirable application of mind at the lower levels and the entire receipts of the assessee have been considered to be his income. Considering the totality of facts and circumstances of the case, we set aside the impugned order and thereafter, it is deemed fit to remand this matter back to the file of Ld. AO for fresh assessment. The Ld. AO would give ample opportunity of being heard and the assessee would do well to present the necessary facts.
In the result, the appeal of the assessee is allowed for statistical purposes.