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Facts
The assessee's appeal pertains to cash deposits of Rs. 6,61,500/- made during demonetization, which were treated as unexplained by the lower authorities. The Assessing Officer had framed the assessment on 23.12.2019, and this was upheld in the appellate discussion.
Held
The Tribunal noted that the Assessing Officer had accepted the assessee's cash sales of Rs. 3,78,54,792/-. Therefore, the impugned cash deposits were held to prima facie represent cash sales and wrongly added as unexplained.
Key Issues
Whether the cash deposits made during demonetization, which prima facie represent accepted cash sales, can be added as unexplained income.
Sections Cited
143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2017-18 Mohd Naushad Ali, Vs Income Tax Officer, A-160, Jamia Nagar, Shaheen Ward-70(4), Bagh, Okhla, New Delhi-110025 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AHDPA0739J Assessee by: Sh. Dev Raj Sharma, Adv. Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 27.05.2025 Date of Pronouncement: 27.05.2025 ORDER
This assessee’s appeal for Assessment Year 2017-18, arises against the Addl./JCIT(A)-2, Jaipur’s DIN & order No. ITBA/APL/S/250/2023-24/1059908936(1) dated 19.01.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”). Delay of 363 days condoned.
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that both the learned lower authorities have assessed the assessee’s cash deposits during demonetization of Rs.6,61,500/-; as unexplained, in the course of assessment framed on 23.12.2019 and upheld in the lower appellate discussion.
Mohd Naushad Ali 4. Faced with this situation, it is noticed that the learned Assessing Officer himself is very fair in accepting the assessee’s stand in para 6 of the assessment discussion that his cash sales in the relevant previous year already stands accepted to the tune of Rs.3,78,54,792/- (para 3) in the assessment discussion. That being the clinching factual position, the only inference which would arise in the given facts is that the assessee’s impugned cash deposits prima facie represent his cash sales which has been wrongly added as an unexplained by both the learned lower authorities. The impugned addition is directed to be deleted in very terms.
This assessee’s appeal is allowed. Order Pronounced in the Open Court on 27/05/2025.