RAVINDER JAIN,NEW DELHI vs. ITO, WARD 34(4), NEW DELHI

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ITA 6014/DEL/2024Status: DisposedITAT Delhi14 May 2025AY 2013-14Bench: SHRI SATBEER SINGH GODARA (Judicial Member)3 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while a satisfactory explanation for the entire amount was lacking, the entire addition could not be denied. A lumpsum addition of Rs. 4 lakhs was deemed appropriate and not to be treated as a precedent.

What were the facts?

The assessee is aggrieved by the addition of Rs. 44,38,292/- as alleged "peak" sum of cash deposits. The assessee's withdrawals exceeded his cash deposits significantly.

What were the issues?

Whether the entire addition based on peak cash deposits is justifiable when withdrawals are significantly higher and can any part of the addition be disallowed without a clear explanation?

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

For Appellant: Adv. Sh. Gurjeet Singh, CA
Hearing: 14.05.2025Pronounced: 14.05.2025

Date of hearing 14.05.2025 Date of pronouncement 14.05.2025 ORDER This assessee’s appeal for assessment year 2013-14, 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/250/2024-25/1070977389(1), dated 06.12.2024 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Heard both the parties. Case file perused.

3.

It emerges during the course of hearing that the assessee is aggrieved against both the learned authorities’ action treating alleged “peak” sum of his cash deposits amounting to Rs.44,38,292/-, in the course of assessment framed on 28.03.2016 and upheld in the lower appellate discussion.

4.

Faced with this situation, learned counsel has filed the assessee’s details of all of his withdrawals right from 03.04.2012 onwards indicating an amount of Rs.1,34,08,519/- as against the “peak” amount in question forming subjecting matter of challenge. The fact, however, remains that even if it is held that the assessee’s withdrawals are already much more excess than his cash deposits, neither his stand get seeking to delete the entire addition could be accepted for want of satisfactory explanation all along, nor the same could be altogether denied for the purpose of granting credit thereof. That being the case, it is deemed appropriate in the larger interest of justice that a lumsum addition of Rs. 4 lakhs only would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets the relief of Rs.40,38,292/- in other words. Necessary computation shall follow as per law.

5.

This assessee’s appeal is partly allowed.

2 | P a g e Order pronounced in the open court on 14th May, 2025

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