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Facts
The assessee's appeal for assessment year 2012-13 arose from an order upholding an addition of Rs. 14.28 lakhs treated as unexplained. The lower authorities' discussion treated the deposit as unexplained.
Held
The Tribunal observed that the assessee had withdrawn Rs. 22 lakhs in cash during the financial year, and the deposit of Rs. 14.28 lakhs was a part of these withdrawals. Therefore, the addition could not be sustained.
Key Issues
Whether cash deposits in an assessment year, which are part of larger cash withdrawals made during the same year, can be treated as unexplained income.
Sections Cited
147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal 2012-13 arises against CIT(A)/ NFAC, Delhi’s order dated 18.06.2025 (DIN & Order No. ITBA/APL/S/250/2025-26/1077168749(1), in proceedings u/s 147 read with section 144 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused.
It emerges during the course of hearing that learned lower authorities’ discussion have treated the assessee’s deposit in question of Rs. 14.28 lakhs as unexplained, in assessment order dated 09.12.2019 and upheld in the lower appellate order dated 16.06.2025.
It is in this backdrop that the tribunal hereby notices from a perusal of the case record that the assessee had in fact withdrawn total cash amounting to Rs. 22 lakhs in the relevant financial year that was partially followed by deposit thereof to the tune of Rs. 14.28 lakhs i.e. forming subject matter of addition. The necessary inference in the given facts which would arise is that the assessee’s above cash deposit forms part of his preceding withdrawals, and, therefore, the impugned addition made by both the lower authorities could not be sustained. Deleted accordingly.
Order pronounced in open court on 20.08.2025