SHAHID CHAUDHARY,GHAZIABAD vs. COMMSSIONER OF INCOME TAX (APPEALS), GHAZIABAD
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2022-23, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2024-25/1070295584(1) dated 12.11.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”). Adjournment rejected.
Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.
Learned department representative vehemently argues during the course of hearing that both the lower authorities herein have rightly assessed the assessee’s cash deposits of Rs.10,60,000/- as unexplained u/s 68 r.w.s. 115BBE of the Act in assessment order dated 16.02.2024 and upheld in the lower appellate discussion. Shahid Chaudhary
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4. I have given my thoughtful consideration to the assessee’s and the Revenue’s foregoing vehement pleadings against and in support of the impugned section 68 unexplained cash credits addition. The Revenue could hardly dispute the clinching fact that it has already assessed the assessee as engaged in construction business involving labour work for repair and maintenance of residential house declared u/s 44AD of the Act.
The necessary inference; even if the assessee’s explanation regarding his cash deposits is rejected, which would arise in the given facts is that the impugned cash deposits prima facie represent his business turnover only although satisfactorily reconciled and verified in both the lower proceedings. That being the case and in the larger interest of justice, it is deemed appropriate that a lump sum addition of Rs.1,00,000/- only would just and proper with a rider that the same shall not be treated as a precedent.
The assessee gets relief of Rs.9,60,000/- in other words. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 21/07/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 21/07/2025
*Subodh Kumar, Sr. PS*