SHUBHAM JAIN,GURGAON vs. ITO WARD 4(2), GURGAON

आदेश / ORDER PERMADHUMITA ROY, JUDICIAL MEMBER:

The instant appeal filed by the assessee is directed against

the order dated 02.03.2026 passed by the Ld. Commissioner of

Income-tax (Appeals)-2, Lucknow [hereinafter referred to as the

Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961

(hereinafter referred to as ‘the Act’) arising out of the Assessment Order dated 28.11.2019 passed by the ITO, Ward 4(2), Gurgaon Order dated 28.11.2019 passed by the ITO, Ward 4(2), Gurgaon Order dated 28.11.2019 passed by the ITO, Ward 4(2), Gurgaon

(hereinafter referred to as ‘the (hereinafter referred to as ‘the Ld. AO’) under Section 143(3) of the d. AO’) under Section 143(3) of the

Act for Assessment Year 2017 Act for Assessment Year 2017-18.

challenges the addition of Rs. 9,35,000/ challenges the addition of Rs. 9,35,000/- on account of cash on account of cash

deposit under Section 69A and its taxation under Section deposit under Section 69A and its taxation under Section deposit under Section 69A and its taxation under Section

115BBE of the Act.

hearing. Considering the facts of the case and the issue involved ing. Considering the facts of the case and the issue involved ing. Considering the facts of the case and the issue involved

for adjudication this Bench proceed to adjudicate the appeal in for adjudication this Bench proceed to adjudicate the appeal in for adjudication this Bench proceed to adjudicate the appeal in

the absence of the assessee after hearing the Learned DR and the absence of the assessee after hearing the Learned DR and the absence of the assessee after hearing the Learned DR and

perusing the material available on record. perusing the material available on record.

his return of income on 4.8.2017 declaring income at Rs. his return of income on 4.8.2017 declaring income at Rs. his return of income on 4.8.2017 declaring income at Rs.

3,97,570/-. Subsequently the case was selected for limited . Subsequently the case was selected for limited . Subsequently the case was selected for limited

scrutiny through CASS for the reason that there was cash deposit scrutiny through CASS for the reason that there was cash deposit scrutiny through CASS for the reason that there was cash deposit

of Rs.10,03,000/- during demonetiz during demonetization. The statutory notices ation. The statutory notices

issued u/s 143(2)/142(1) were duly responded by the assessee. issued u/s 143(2)/142(1) were duly responded by the assessee. issued u/s 143(2)/142(1) were duly responded by the assessee.

The assessee’s explanation was that he was a colliery proprietor The assessee’s explanation was that he was a colliery proprietor The assessee’s explanation was that he was a colliery proprietor and contractor and for conducting business and for payment to and contractor and for conducting business and for payment to and contractor and for conducting business and for payment to

labour he had to keep large sums to me labour he had to keep large sums to meet emergency and that et emergency and that

sum of Rs. 50,000/- sum of Rs. 50,000/- realized by encashment of notes was not realized by encashment of notes was not

profit but floating capital for conducting business. The source of profit but floating capital for conducting business. The source of profit but floating capital for conducting business. The source of

deposit was stated to be gifts from relatives during marriage and deposit was stated to be gifts from relatives during marriage and deposit was stated to be gifts from relatives during marriage and

Rs. 68,000/- received from mother. Duri received from mother. During scrutiny assessment ng scrutiny assessment

the AO treated Rs. 68,000/ the AO treated Rs. 68,000/- received from mother as verified and received from mother as verified and

treating the remaining Rs.9,35,000/ treating the remaining Rs.9,35,000/- as unexplained cash as unexplained cash

deposits under Section 69A added the same to the income deposits under Section 69A added the same to the income deposits under Section 69A added the same to the income

returned by the assessee with taxation under Section 115BBE. In returned by the assessee with taxation under Section 11 returned by the assessee with taxation under Section 11

appeal the Learned First Appellate Authority affirmed the action appeal the Learned First Appellate Authority affirmed the action appeal the Learned First Appellate Authority affirmed the action

of the AO. Now the assessee is in appeal before this Tribunal. of the AO. Now the assessee is in appeal before this Tribunal. of the AO. Now the assessee is in appeal before this Tribunal.

to prevent the of miscarriage of justice this Bench would like to to prevent the of miscarriage of justice this Bench wou to prevent the of miscarriage of justice this Bench wou

grant a further opportunity to the Assessee to represent its case grant a further opportunity to the Assessee to represent its case grant a further opportunity to the Assessee to represent its case

before the First Appellate Authority and, therefore, the appeal is before the First Appellate Authority and, therefore, the before the First Appellate Authority and, therefore, the

disposed of by setting aside the issue to the file of the Ld. CIT(A) by setting aside the issue to the file of the Ld. CIT(A) by setting aside the issue to the file of the Ld. CIT(A)

for proper adjudication of the same upon gr for proper adjudication of the same upon granting a reasonable anting a reasonable

opportunity of being heard to the Assessee and upon considering opportunity of being heard to the Assessee and upon considering opportunity of being heard to the Assessee and upon considering

the evidence on record or any other evidence which the Assessee the evidence on record or any other evidence which the Assessee the evidence on record or any other evidence which the Assessee may choose to file at the time of hearing of the appeal. However, may choose to file at the time of hearing of the appeal. However, may choose to file at the time of hearing of the appeal. However,

it is made clear that in the event of th it is made clear that in the event of the Assessee does not e Assessee does not

cooperate with the First Appellate Authority, the said authority cooperate with the First Appellate Authority, the said authority cooperate with the First Appellate Authority, the said authority

would be at liberty to proceed with the matter and decide the would be at liberty to proceed with the matter and decide the would be at liberty to proceed with the matter and decide the

issue strictly in accordance with law. Further liberty is also issue strictly in accordance with law. Further liberty is also issue strictly in accordance with law. Further liberty is also

granted to the Ld. CIT(A) to ask for a reman granted to the Ld. CIT(A) to ask for a remand report from the Ld. d report from the Ld.

A.O., if so, required. A.O., if so, required.

purposes.

Order pronounced in the open court on Order pronounced in the open court on 10th August, 202 , 2026

Sd/- MADHUMITAROY) (MADHUMITAROY JUDICIAL MEMBER JUDICIAL MEMBER Dated: 10th August, 2026. , 2026. R.Naheed Copy to: SHUBHAM JAIN, C-13 TECHNICAL PARADISE CGHS, 13 TECHNICAL PARADISE CGHS, 1 PLOT NO 61, SECTOR 56 GURGAON PLOT NO 61, SECTOR 56 GURGAON, GURGAON-122011, 122011, HARYANA

ITO WARD 4(2), VANIJYA NIKUNJ, SHANKAR CHOWK VANIJYA NIKUNJ, SHANKAR CHOWK 2 RD, PHASE V, UDYOG VIHAR, SECTOR RD, PHASE V, UDYOG VIHAR, SECTOR 19, 19, GURUGRAM, GURUGRAM, HARYANA HARYANA 122016, 122016 GURGAON-122016, HARYANA 122016, HARYANA 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI DELHIBENCH 5 GUARD FILE