ARUN PRUTHI,RAJOURI GARDEN WEST DELHI vs. ASSESSING OFFICER (A.O)WARD 45(2), CIVIC CENTRE NEW DELHI

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ITA 257/DEL/2025Status: DisposedITAT Delhi22 July 2025AY 2017-183 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal held that a percentage-based addition for unexplained cash deposits is not permissible and deleted the impugned addition. For the deemed annual letting value, the addition was restricted to a lumpsum amount, not to be treated as a precedent.

What were the facts?

The assessee's appeal concerned an addition for unexplained cash deposits and a deemed annual letting value of house property. The assessee did not appear before the tribunal, and the case was proceeded ex-parte.

What were the issues?

Whether a percentage-based addition for unexplained cash deposits is valid, and the extent to which deemed annual letting value can be added based on estimation.

Which sections of the Income-tax Act were involved?

Section 69A,Section 115BBE,Section 23(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: SMC NEW DELHI

Before: SHRI SATBEER SINGH GODARA

For Respondent: DR |

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: "SMC" NEW DELHI

BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER

ITA No.257/Del/2025 Assessment Year: 2017-18

Sh. Arun Pruthi, | Vs. | Assessing Officer, J-11/3, Rajouri Garden, | Ward-45(2), Tagore Garden, West Delhi, | Delhi Delhi PAN: AESPP1499J (Appellant) | (Respondent)

Assessee by | None Department by | Sh. Manoj Kumar, Sr. DR

Date of hearing | 22.07.2025 Date of pronouncement | 22.07.2025

ORDER

This assessee's appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the "CIT(A)/NFAC"], Delhi's DIN and order no. ITBA/NFAC/S/250/2024-25/1069855380(1), dated 22.10.2024, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act').

Case called twice. None appears at the assessee's behest. He is accordingly proceeded ex-parte.

2.

Coming to the assessee's former substantive ground herein seeking to reverse both the learned lower authorities' action making section 69A r.w.s. 115BBE unexplained cash deposit addition of Rs.11.75 lakhs added in assessment order dated 16.12.2019 and restricted to that @ 50% only in the lower appellate discussion, Mr. Manoj Kumar, learned departmental representative vehemently argues that even the fact that he has failed to explain the source thereof, the same deserves to be upheld before the tribunal. He could hardly dispute the clinching fact emerging from the case file that all what the CIT(A)/NFAC has done is to treat the assessee's impugned 50% cash deposits during demonetization as not genuine, the tribunal is of the considered view that such a course of action on percentage basis is not available. That being the case, the tribunal hereby sees no merit in the impugned partly confirmed addition as well, which stands deleted.

3.

The second substantive issue between the parties herein is that of deemed annual letting value of the assessee's corresponding house property(ies) under section 23(1)(a) of the Act involving a sum of Rs.8.40 lakhs assessed in the assessment order and restricted to Rs.6.12 lakhs in the lower appellate discussion. The case file indicates that entire exercise has been done on estimation basis only wherein, some distressing factors in the assessee's

favour could not be altogether ruled out. It is thus deemed appropriate in the larger interest of justice that the impugned addition of Rs.6.12 lakhs deserve to be restricted to a lumpsum addition of Rs.5 lakhs only with a rider that the same shall not be treated as a precedent. The assessee gets rental income relief of Rs.1.12 lakhs in other words.

4.

This assessee's appeal is partly allowed.

Order pronounced in the open court on 22nd July, 2025

Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER

Dated: 22nd July, 2025.

RK/-

Copy forwarded to:

- 1. Appellant 2. Respondent - 3. CIT - 4. CIT(A) - 5. DR

Asst. Registrar, ITAT, New Delhi

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