DHARAM SINGH,GURUGRAM vs. ITO, WARD 1(4) GURGAON, GURUGRAM

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ITA 1098/DEL/2025Status: DisposedITAT Delhi14 May 2025AY 2017-182 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that taxable income must be assessed in the hands of the correct person. Since the deposits were not made in the assessee's personal account, the addition made by the lower authorities was quashed.

What were the facts?

The assessee's appeal concerns alleged cash deposits of Rs. 12.56 lakhs made during demonetization. However, the bank account statements revealed that these deposits were made in the name of a firm, M/s. Dagar Building Material Supplier, not the assessee.

What were the issues?

Whether the cash deposits made in a firm's bank account can be added to the income of an individual assessee. The principle of assessing income in the hands of the right person.

Which sections of the Income-tax Act were involved?

Section 144,Section 263

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, DELHI BENCH: SMC NEW DELHI

Before: SHRI SATBEER SINGH GODARA

For Appellant: CA |
For Respondent: DR |

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

BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER

ITA No.1098/Del/2025 Assessment Year: 2017-18

Sh. Dharam Singh, | Vs. | Income Tax Officer, C/o- YSR & Associates, | Ward-1(4), Plot No. 214, Basement, | Gurgaon Sector-47, Gurugram PAN :AABPY9857A (Appellant) | (Respondent)

Assessee by | Sh. M.R. Sahu, CA Department by | Sh. Yogeshwar Sharma, Sr. DR

Date of hearing | 14.05.2025 Date of pronouncement | 14.05.2025

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/250/2024-25/1071627063(1), dated 27.12.2024 involving proceedings under section 144 r.w.s. 263 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act').

- 2. Heard both the parties. Case file perused. - 3. It emerges at the outset that both the learned lower authorities have assessed the assessee for having made alleged

cash deposits of Rs. 12.56 lakhs in his bank account during

demonetization. A perusal of the case records, more particularly,

the corresponding bank accounts statement at page 13 onwards,

indicates that the cash deposits in question in fact have been made

in a bank account in the name of M/s. Dagar Building Material

Supplier than the assessee.

4.

That being the case, I hereby quote ITO vs. Ch.

Atchaiah (1966) 218 ITR 239 (SC) that any taxable income has to

be assessed in the right person's hands only, to quash the

impugned addition made by both the learned lower authorities.

Ordered accordingly.

5.

This assessee's appeal is allowed.

Order pronounced in the open court on 14th May, 2025

Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER

Dated: 14th May, 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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