INCOME TAX OFFICER, MUZAFFARNAGAR vs. NAKUL KUMAR, MUZAFFARNAGAR

आदेश / ORDER

PERAMITABH SHUKLA AMITABH SHUKLA, AM:

This appeal has been preferred by the Revenue against the order dated This appeal has been preferred by the Revenue against the This appeal has been preferred by the Revenue against the

12.11.2025 of the Learned Learned Commissioner of Income Tax (Appeals)/ Commissioner of Income Tax (Appeals)/National

Faceless Appeal Centre, New Delhi, Faceless Appeal Centre, New Delhi,[hereinafter referred to as ‘ld. CIT(A)’] [hereinafter referred to as ‘ld. CIT(A)’]

arising out of assessment order dated arising out of assessment order dated 28.03.2022 passed u/s 147 r.w.s. 144B 147 r.w.s. 144Bof

the Income Tax Act, 1961. The word ‘Act’ herein this ord the Income Tax Act, 1961. The word ‘Act’ herein this order would mean er would mean

Income Tax Act, 1961,for the Assessment Year 2013 ,for the Assessment Year 2013-14. The assessee has also The assessee has also

filed Cross Objection.

ITA No.8606/Del/2025

light of material available on records. As light of material available on records. As per brief factual matrix of the case, the per brief factual matrix of the case, the

assessee had not filed its return of income despite indulging in substantial assessee had not filed its return of income despite indulging in substantial assessee had not filed its return of income despite indulging in substantial

transaction amounting to Rs.3,76,59,000/ transaction amounting to Rs.3,76,59,000/-. The Revenue had conducted . The Revenue had conducted

enquiries u/s 133(6) with the HDFC Bank, Muzaffarnagar and it transpired enquiries u/s 133(6) with the HDFC Bank, Muzaffarnagar and it trans enquiries u/s 133(6) with the HDFC Bank, Muzaffarnagar and it trans

therefrom that the assessee had deposited large amounts of cash on various dates therefrom that the assessee had deposited large amounts of cash on various dates therefrom that the assessee had deposited large amounts of cash on various dates

during the financial year under consideration. during the financial year under consideration. In response to notice u/s 148 dated In response to notice u/s 148 dated

31.03.2021, assessee filed its return declaring income of Rs.1,94,150/- on 31.03.2021, assessee filed its return declaring income of Rs.1,94,150/ 31.03.2021, assessee filed its return declaring income of Rs.1,94,150/

17.02.2022. Before the ld. AO, assessee admitted that it is engaged in the Before the ld. AO, assessee admitted that it is engaged in the Before the ld. AO, assessee admitted that it is engaged in the

business of transport commission agent qua hiring of trucks by its clients. It was business of transport commission agent qua hiring of trucks by its clients. It was business of transport commission agent qua hiring of trucks by its clients. It was

submitted that the cash receipts from the clients was deposited in his bank submitted that the cash receipts from the clients was deposited in his bank submitted that the cash receipts from the clients was deposited in his bank

accounts and thereafter distribu accounts and thereafter distributed to truck owners and service providers. The ted to truck owners and service providers. The

ld. AO noted that other than providing a list of truck owners, no other details ld. AO noted that other than providing a list of truck owners, no other details ld. AO noted that other than providing a list of truck owners, no other details

was furnished casting doubt on the genuineness of cash deposits. He proceeded was furnished casting doubt on the genuineness of cash deposits. He proceeded was furnished casting doubt on the genuineness of cash deposits. He proceeded

to make addition of Rs.3,76,59,000/ to make addition of Rs.3,76,59,000/- u/s 68 r.w.s 115BBE of the Act. 115BBE of the Act.

the amount of Rs.3,76,59,000/ the amount of Rs.3,76,59,000/- be taken as turnover of the assessee and that 5% be taken as turnover of the assessee and that 5%

of the impugned turnover amounting to Rs.18,82,950/ of the impugned turnover amounting to Rs.18,82,950/- was sustained as an was sustained as an

addition and balance deleted. addition and balance deleted. The ld. CIT(A) observed as under:-

“….4. A remand requisition was sent to the assessing officer on A remand requisition was sent to the assessing officer on A remand requisition was sent to the assessing officer on 22/09/2025 and inresponse to the same, the Remand report dated 22/09/2025 and inresponse to the same, the Remand report dated 22/09/2025 and inresponse to the same, the Remand report dated 22/10/2025 was received and the same is re 22/10/2025 was received and the same is reproduced as under:-

In this case it is submitted that the assessee is an individual and has not In this case it is submitted that the assessee is an individual and has not In this case it is submitted that the assessee is an individual and has not filed Return of Income u/s 139(1) or within the extended time limit filed Return of Income u/s 139(1) or within the extended time limit filed Return of Income u/s 139(1) or within the extended time limit prescribed u/s 139(4) of the IT Act, 1961 for the AY 2013 prescribed u/s 139(4) of the IT Act, 1961 for the AY 2013-14. On the 14. On the basis of information p basis of information pushed under NMS category in AIMS module of ushed under NMS category in AIMS module of ITBA, it was found that the assessee has made financial transaction of ITBA, it was found that the assessee has made financial transaction of ITBA, it was found that the assessee has made financial transaction of amounting to Rs. 3,76,59,000/ amounting to Rs. 3,76,59,000/-during the FY 2012-13 relevant to AY 13 relevant to AY 2013-14. Accordingly, the notice u/s 133(6) of the Act was issued to the 14. Accordingly, the notice u/s 133(6) of the Act was issued to the 14. Accordingly, the notice u/s 133(6) of the Act was issued to the branch manager of HDFC bank, Muzaffarnagar after obtaining anch manager of HDFC bank, Muzaffarnagar after obtaining anch manager of HDFC bank, Muzaffarnagar after obtaining approval from the competent authority and called for bank statement of approval from the competent authority and called for bank statement of approval from the competent authority and called for bank statement of the assessee for the FY 2012 the assessee for the FY 2012-13. On perusal of the bank statement of the 13. On perusal of the bank statement of the assessee, it was seen that the assessee has deposited c assessee, it was seen that the assessee has deposited cash on various ash on various dates in his bank account maintained with HDFC bank, Muzaffarnagar dates in his bank account maintained with HDFC bank, Muzaffarnagar dates in his bank account maintained with HDFC bank, Muzaffarnagar during the year under consideration but not filed ITR for the A.Y. 2013- during the year under consideration but not filed ITR for the A.Y. 2013 during the year under consideration but not filed ITR for the A.Y. 2013 14. The analysis of banking statement of the assessee confirmed that the 14. The analysis of banking statement of the assessee confirmed that the 14. The analysis of banking statement of the assessee confirmed that the source of cash deposit amount source of cash deposit amounting to Rs. 3,76,59,000/- remains unexplained and undisclosed income of the assessee. Accordingly, the unexplained and undisclosed income of the assessee. Accordingly, the unexplained and undisclosed income of the assessee. Accordingly, the notice u/s 148 of the Act was issued to the assessee on 31.03.2021 and notice u/s 148 of the Act was issued to the assessee on 31.03.2021 and notice u/s 148 of the Act was issued to the assessee on 31.03.2021 and duly served to the assessee. In response, the assessee filed return of duly served to the assessee. In response, the assessee filed return of duly served to the assessee. In response, the assessee filed return of income on 17.02.2022 declaring a total income of Rs. 1,94,150/ .02.2022 declaring a total income of Rs. 1,94,150/-. .02.2022 declaring a total income of Rs. 1,94,150/ Subsequently, the notices u/s 143(2) and 142(1) of the Act were issued Subsequently, the notices u/s 143(2) and 142(1) of the Act were issued Subsequently, the notices u/s 143(2) and 142(1) of the Act were issued and the assessee responded and filed submission as per requirements and the assessee responded and filed submission as per requirements and the assessee responded and filed submission as per requirements from time to time. During the course of assessment proceedings, on from time to time. During the course of assessment proceedings, from time to time. During the course of assessment proceedings, perusal of submission made by the assessee, it was seen that the assessee perusal of submission made by the assessee, it was seen that the assessee perusal of submission made by the assessee, it was seen that the assessee has made cash deposit of amounting to Rs. 3,76,59,000/ has made cash deposit of amounting to Rs. 3,76,59,000/-in his bank in his bank account maintained with HDFC bank, Muzaffarnagar which has also account maintained with HDFC bank, Muzaffarnagar which has also account maintained with HDFC bank, Muzaffarnagar which has also been confirmed from the account statement of the been confirmed from the account statement of the assessee. In his reply, assessee. In his reply, the assessee has stated that he is a transport commission agent and the assessee has stated that he is a transport commission agent and the assessee has stated that he is a transport commission agent and arrange trucks for clients on commission basis. The truck drivers arrange trucks for clients on commission basis. The truck drivers arrange trucks for clients on commission basis. The truck drivers received payments from the clients in cash and the same was deposited received payments from the clients in cash and the same was deposited received payments from the clients in cash and the same was deposited in the bank account of the in the bank account of the assessee in Muzaffarnagar. After deducting assessee in Muzaffarnagar. After deducting commission from the amount received from the clients, the assessee paid commission from the amount received from the clients, the assessee paid commission from the amount received from the clients, the assessee paid the balance amount to the petrol pumps owners for supplying diesel and the balance amount to the petrol pumps owners for supplying diesel and the balance amount to the petrol pumps owners for supplying diesel and also to the spare parts shop owners for providing tyres and other also to the spare parts shop owners for providing tyres and other also to the spare parts shop owners for providing tyres and other accessories etc. to run the trucks on prior permission of the truck ssories etc. to run the trucks on prior permission of the truck ssories etc. to run the trucks on prior permission of the truck owners.During the assessment proceedings, the assessee was asked to owners.During the assessment proceedings, the assessee was asked to owners.During the assessment proceedings, the assessee was asked to furnish details of trucks hired, details of client's details of parties who furnish details of trucks hired, details of client's details of parties who furnish details of trucks hired, details of client's details of parties who received goods etc. The assessee furnished only received goods etc. The assessee furnished only list of trucks owners but list of trucks owners but no other details. Accordingly, after perusal of all the records furnished no other details. Accordingly, after perusal of all the records furnished no other details. Accordingly, after perusal of all the records furnished by the assessee as well as available on record of this office, it was found by the assessee as well as available on record of this office, it was found by the assessee as well as available on record of this office, it was found that the assessee has not proved the genuineness of the cash that the assessee has not proved the genuineness of the cash that the assessee has not proved the genuineness of the cash deposits/transactions and thus the assessment was completed on an ns and thus the assessment was completed on an ns and thus the assessment was completed on an assessed income of Rs. 3,78,53, 150/ assessed income of Rs. 3,78,53, 150/- after making an addition of Rs. after making an addition of Rs. 3,76,59,000/- u/s 68 of the Act r.w.s. 115BBE on 28.03.2022As per your u/s 68 of the Act r.w.s. 115BBE on 28.03.2022As per your u/s 68 of the Act r.w.s. 115BBE on 28.03.2022As per your direction for submission of remand report with reference to the direction for submission of remand report with reference to the direction for submission of remand report with reference to the appellant's submission one llant's submission one-filing portal (CPC 2.0), while going through filing portal (CPC 2.0), while going through the CPC 2.0, it has been found that no submission has been filed by the the CPC 2.0, it has been found that no submission has been filed by the the CPC 2.0, it has been found that no submission has been filed by the assessee on the portal. Accordingly, a letter was issued to the assessee assessee on the portal. Accordingly, a letter was issued to the assessee assessee on the portal. Accordingly, a letter was issued to the assessee on 25.09.2025 to furnishadditional evidence on 25.09.2025 to furnishadditional evidence/facts/grounds. In response, /facts/grounds. In response, the assessee has furnished additional evidence and facts in the form of the assessee has furnished additional evidence and facts in the form of the assessee has furnished additional evidence and facts in the form of affidavits received from the truck owners containing that they have affidavits received from the truck owners containing that they have affidavits received from the truck owners containing that they have advised the assessee to pay freight received from the clients to petrol advised the assessee to pay freight received from the clients to petrol advised the assessee to pay freight received from the clients to petrol pump owners as well as to spare parts shop owners for supplying diesel well as to spare parts shop owners for supplying diesel well as to spare parts shop owners for supplying diesel and other accessories supplied to the trucks from time to time during the and other accessories supplied to the trucks from time to time during the and other accessories supplied to the trucks from time to time during the transportation of goods of clients, bank statement for the F.Y. 2012-13 transportation of goods of clients, bank statement for the F.Y. 2012 transportation of goods of clients, bank statement for the F.Y. 2012 and cash flow statement of the assessee for the year e and cash flow statement of the assessee for the year ended on 31st nded on 31st March, 2013. On perusal of bank statement and cash flow statement of the assessee, it On perusal of bank statement and cash flow statement of the assessee, it On perusal of bank statement and cash flow statement of the assessee, it has been gathered that the assessee has received commission of has been gathered that the assessee has received commission of has been gathered that the assessee has received commission of amounting to Rs. 3,76,600/ amounting to Rs. 3,76,600/- @ 1% while making payments of Rs. @ 1% while making payments of Rs. 3,76,60,082/- to the truck owner to the truck owners as freight received from the clients and s as freight received from the clients and paid the balance to the petrol pump and spare parts shops owners. On paid the balance to the petrol pump and spare parts shops owners. On paid the balance to the petrol pump and spare parts shops owners. On perusal of the bank statement of the assessee, it has also been noticed perusal of the bank statement of the assessee, it has also been noticed perusal of the bank statement of the assessee, it has also been noticed that the assessee has received payments of Rs. that the assessee has received payments of Rs. 3,75,29,007l- and the sam and the same was paid to the owners of filling stations as e was paid to the owners of filling stations as well as to the spare parts shop owners. Also, cash flow statement of the well as to the spare parts shop owners. Also, cash flow statement of the well as to the spare parts shop owners. Also, cash flow statement of the assessee for the year ended 31st March, 2013 reveals that the opening assessee for the year ended 31st March, 2013 reveals that the opening assessee for the year ended 31st March, 2013 reveals that the opening balance was at Rs. 1,20,000/ balance was at Rs. 1,20,000/- and the assessee received payments and the assessee received payments from the clients/parties in cash at amounting to Rs. 3,76,59,000/ the clients/parties in cash at amounting to Rs. 3,76,59,000/- and cheque and cheque of Rs. 1,22,029/- which comes to a total of Rs. 3,79,01,029. On the other which comes to a total of Rs. 3,79,01,029. On the other which comes to a total of Rs. 3,79,01,029. On the other side, the assessee has made payments to truck owners at amounting to side, the assessee has made payments to truck owners at amounting to side, the assessee has made payments to truck owners at amounting to Rs. 3,74,04,429/- and balance amoun and balance amount has been shown as expenses, t has been shown as expenses, drawings, cash in hand and cash at bank. Thus, the both sides of cash drawings, cash in hand and cash at bank. Thus, the both sides of cash drawings, cash in hand and cash at bank. Thus, the both sides of cash flow statement have been equally shown at amounting to Rs. flow statement have been equally shown at amounting to Rs. flow statement have been equally shown at amounting to Rs. 3,79,01,029/- which is apparent from the records. In addition, the which is apparent from the records. In addition, the which is apparent from the records. In addition, the assessee has also submitted co assessee has also submitted copies of affidavits of the truck owners in pies of affidavits of the truck owners in which the truck owners have solemnly accepted the amount received as which the truck owners have solemnly accepted the amount received as which the truck owners have solemnly accepted the amount received as freight from the assessee and advised the assessee to pay the amount to freight from the assessee and advised the assessee to pay the amount to freight from the assessee and advised the assessee to pay the amount to the owners of petrol pumps as well as to the spare parts shop owners. In the owners of petrol pumps as well as to the spare parts shop owners. In the owners of petrol pumps as well as to the spare parts shop owners. In this regard, it is also pertinent to mention here that the assessee has this regard, it is also pertinent to mention here that the assessee has this regard, it is also pertinent to mention here that the assessee has submitted the copy of assessment order in a similar case of Pradeep submitted the copy of assessment order in a similar case of Pradeep submitted the copy of assessment order in a similar case of Pradeep Singh bearing PAN- -(CLHPS4652Q) for the AY 2009-10 in which, the 10 in which, the AO of Ward- 2(1), Muzaffarnagar has accepted the inc 2(1), Muzaffarnagar has accepted the income of the ome of the assessee at estimated commission received @5% on totai freight assessee at estimated commission received @5% on totai freight assessee at estimated commission received @5% on totai freight receipts. Therefore, in view of the above, the justification of commission receipts. Therefore, in view of the above, the justification of commission receipts. Therefore, in view of the above, the justification of commission on freight received by the assessee on amount of freight received from on freight received by the assessee on amount of freight received from on freight received by the assessee on amount of freight received from the clients and thereafter balance a the clients and thereafter balance amount of freight, paid to the petrol mount of freight, paid to the petrol pump owners as well as to the owners of spare parts shop on the pump owners as well as to the owners of spare parts shop on the pump owners as well as to the owners of spare parts shop on the instruction of truck owners is being submitted for your kind perusal. instruction of truck owners is being submitted for your kind perusal. instruction of truck owners is being submitted for your kind perusal.

5.1. Upon thorough consideration of the assessment order, grounds of 5.1. Upon thorough consideration of the assessment order, grounds of 5.1. Upon thorough consideration of the assessment order, grounds of appeal, written submissions, affidavits, cash flow statement, and the missions, affidavits, cash flow statement, and the missions, affidavits, cash flow statement, and the remand report, as well as the precedent set in the case of Shri Pradeep remand report, as well as the precedent set in the case of Shri Pradeep remand report, as well as the precedent set in the case of Shri Pradeep Singh (A.Y. 2009-10, ITO Ward 10, ITO Ward-2(1), Muzaffarnagar), it is clear that the 2(1), Muzaffarnagar), it is clear that the appellant has provided sufficient evidence to support his bu appellant has provided sufficient evidence to support his business as a siness as a transport commission agent. The affidavits from truck owners and the transport commission agent. The affidavits from truck owners and the transport commission agent. The affidavits from truck owners and the cash flow statement substantiate the claim that the majority of the cash cash flow statement substantiate the claim that the majority of the cash cash flow statement substantiate the claim that the majority of the cash deposits represented freight receipts, which were subsequently disbursed deposits represented freight receipts, which were subsequently disbursed deposits represented freight receipts, which were subsequently disbursed to truck owners and service p to truck owners and service providers like petrol/fuel stations and spare roviders like petrol/fuel stations and spare part dealersas part of regular business practice. part dealersas part of regular business practice.

5.2. The appellant relied on a similar case of Pradeep Singh, where the 5.2. The appellant relied on a similar case of Pradeep Singh, where the 5.2. The appellant relied on a similar case of Pradeep Singh, where the incomewas assessed by estimating commission income at 5% of the total incomewas assessed by estimating commission income at 5% of the total incomewas assessed by estimating commission income at 5% of the total freight receipts.This approach was accepted by both the Assessing his approach was accepted by both the Assessing his approach was accepted by both the Assessing Officer and the CIT (Appeals), Muzaffarnagar. The appellant has relied Officer and the CIT (Appeals), Muzaffarnagar. The appellant has relied Officer and the CIT (Appeals), Muzaffarnagar. The appellant has relied on this precedent to argue for a reasonable estimation of income, rather on this precedent to argue for a reasonable estimation of income, rather on this precedent to argue for a reasonable estimation of income, rather than the addition of the entire turnover as unexplained income. Further, than the addition of the entire turnover as unexplained income. than the addition of the entire turnover as unexplained income. the appellant had not maintained any regular books of accounts and the appellant had not maintained any regular books of accounts and the appellant had not maintained any regular books of accounts and supporting documents to claim lower profit as admitted by the appellant. supporting documents to claim lower profit as admitted by the appellant. supporting documents to claim lower profit as admitted by the appellant.

5.3. Therefore, considering the facts and circumstances of the present 5.3. Therefore, considering the facts and circumstances of the present 5.3. Therefore, considering the facts and circumstances of the present case, and in the interest of justic case, and in the interest of justice and consistency with the treatment e and consistency with the treatment accorded in the Pradeep Singh case, the Assessing Officer is directed to accorded in the Pradeep Singh case, the Assessing Officer is directed to accorded in the Pradeep Singh case, the Assessing Officer is directed to estimate the appellant's profit by applying a rate of 5% of the turnover estimate the appellant's profit by applying a rate of 5% of the turnover estimate the appellant's profit by applying a rate of 5% of the turnover (i.e., 5% of Rs, 3,76,59,000), and to assess the income accordingly. The (i.e., 5% of Rs, 3,76,59,000), and to assess the income accordingly. The (i.e., 5% of Rs, 3,76,59,000), and to assess the income accordingly. The addition made under section 68 r.w.s. 115BBE is to be restricted to the addition made under section 68 r.w.s. 115BBE is to be restricted to the addition made under section 68 r.w.s. 115BBE is to be restricted to the profit so estimated, and the balance is to be deleted. profit so estimated, and the balance is to be deleted.

were the accounts audited. It was submitted that it was intriguing that all the were the accounts audited. It was submitted that it was intriguing that all the were the accounts audited. It was submitted that it was intriguing that all the

cash deposits were made in the Muzaffarnagar bank branch only. The ld. DR cash deposits were made in the Muzaffarnagar bank branch only. The ld. DR cash deposits were made in the Muzaffarnagar bank branch only. The ld. DR

therefore argued that the estimation of 5% profit in respect of total cash deposits the estimation of 5% profit in respect of total cash deposits the estimation of 5% profit in respect of total cash deposits

of Rs.3,76,59,000/- was thus faulty. was thus faulty.

AO has not disputed the principal business of the assessee of being a transport AO has not disputed the principal business of the assessee of being a transp AO has not disputed the principal business of the assessee of being a transp

commission agent. It is not the case of the Revenue that the assessee was not commission agent. It is not the case of the Revenue that the assessee was not commission agent. It is not the case of the Revenue that the assessee was not

doing transport commission business. The Revenue has primarily premised that doing transport commission business. The Revenue has primarily premised that doing transport commission business. The Revenue has primarily premised that

non-submission of sufficient details of its business, cast a doubt upon the submission of sufficient details of its business, cast a doubt upon the submission of sufficient details of its business, cast a doubt upon the

genuineness of cash deposits in its bank account. deposits in its bank account. We have noted from the order We have noted from the order

of ld. CIT(A) extracted hereinabove that he had given the opportunity to the ld. of ld. CIT(A) extracted hereinabove that he had given the opportunity to the ld. of ld. CIT(A) extracted hereinabove that he had given the opportunity to the ld.

AO to defend his addition and file a remand report. In the impugned remand AO to defend his addition and file a remand report. In the impugned remand AO to defend his addition and file a remand report. In the impugned remand

report dated 22.10.2025, the ld. AO pri report dated 22.10.2025, the ld. AO primarily repeated the arguments taken in marily repeated the arguments taken in

the assessment order dated 28.03.2022, we have noted that towards the end of the assessment order dated 28.03.2022, we have noted that towards the end of the assessment order dated 28.03.2022, we have noted that towards the end of

his remand report, the ld. AO himself has alluded and submitted before the ld. his remand report, the ld. AO himself has alluded and submitted before the ld. his remand report, the ld. AO himself has alluded and submitted before the ld.

CIT(A) that in a similar case on identical facts of one Shri CIT(A) that in a similar case on identical facts of one Shri Pradeep Singh, the Pradeep Singh, the

AO had estimated the commission received of 5% on total freight receipts. AO had estimated the commission received of 5% on total freight receipts. AO had estimated the commission received of 5% on total freight receipts.

the remand report of the ld. AO. As per para the remand report of the ld. AO. As per para-5.2 of the appellate order (supra), 5.2 of the appellate order (supra),

the assessee had also relied upon the precedent alluded in the case of Shri assessee had also relied upon the precedent alluded in the case of Shri assessee had also relied upon the precedent alluded in the case of Shri Pradeep Singh. Thus, the assessee has himself indicated 5% commission qua Pradeep Singh. Thus, the assessee has himself indicated 5% commission qua Pradeep Singh. Thus, the assessee has himself indicated 5% commission qua

case of Shri Pradeep Singh, and the ld. AO has also included the same case of Shri Pradeep Singh, and the ld. AO has also included the same case of Shri Pradeep Singh, and the ld. AO has also included the same

precedence in his remand report. Accord precedence in his remand report. Accordingly, no fault can be attached to the ingly, no fault can be attached to the

conduct of ld. CIT(A) while estimating addition @5% of the turnover. The conduct of ld. CIT(A) while estimating addition @5% of the turnover. The conduct of ld. CIT(A) while estimating addition @5% of the turnover. The

ground of appeal no.1, 3, 4, 5 and 6 raised by the appellant revenue is therefore ground of appeal no.1, 3, 4, 5 and 6 raised by the appellant revenue is therefore ground of appeal no.1, 3, 4, 5 and 6 raised by the appellant revenue is therefore

dismissed.

under Rule-46A have been violated as the ld. CIT(A) has considered which were 46A have been violated as the ld. CIT(A) has considered which were 46A have been violated as the ld. CIT(A) has considered which were

not considered by the ld. AO. The impugned ground raised by the revenue has not considered by the ld. AO. The impugned ground raised by the revenue has not considered by the ld. AO. The impugned ground raised by the revenue has

been found to be totally bereft of any meritorious consideration. In para-4 on been found to be totally bereft of any meritorious consideration. In para been found to be totally bereft of any meritorious consideration. In para

page-4 of the appellate order, the ld. CIT(A) has clearly indicated that vide his 4 of the appellate order, the ld. CIT(A) has clearly indicated that vide his 4 of the appellate order, the ld. CIT(A) has clearly indicated that vide his

letter dated 22.09.2025, it had called remand report. On page letter dated 22.09.2025, it had called remand report. On page-5 of the order, he 5 of the order, he

has written in the first line on the top that the ld. AO had submitted a remand has written in the first line on the top that the ld. AO had submitted a remand has written in the first line on the top that the ld. AO had submitted a remand

report dated 22.10.2025. The argument of the appellant Revenue of violation of d 22.10.2025. The argument of the appellant Revenue of violation of d 22.10.2025. The argument of the appellant Revenue of violation of

Rule-46A is thus not made out. The ground of appeal no.2 of the Revenue is 46A is thus not made out. The ground of appeal no.2 of the Revenue is 46A is thus not made out. The ground of appeal no.2 of the Revenue is

therefore dismissed as infructuous. therefore dismissed as infructuous.

Cross Objection No.97/Del/2026 Cross Objection No.97/Del/2026

for the assessee in respect of its grounds of appeal no.1 and 2 above and hence for the assessee in respect of its grounds of appeal no.1 and 2 above and hence for the assessee in respect of its grounds of appeal no.1 and 2 above and hence

the same is dismissed as infructuous. the same is dismissed as infructuous.

profits treating cash deposits as profits treating cash deposits as the turnover by the ld. CIT(A) , the same has the turnover by the ld. CIT(A) , the same has

been found to be in order as concluded in Revenue’s appeal discussed been found to be in order as concluded in Revenue’s appeal discussed been found to be in order as concluded in Revenue’s appeal discussed

hereinabove. We have noted that the suggestion of 5% was given by the assessee hereinabove. We have noted that the suggestion of 5% was given by the assessee hereinabove. We have noted that the suggestion of 5% was given by the assessee

himself by citing the case of Shri Pradip Singh (supra). himself by citing the case of Shri Pradip Singh (supra). The ground of appeal ground of appeal

nos.3, 5 and 6 are also therefore dismissed. nos.3, 5 and 6 are also therefore dismissed.

115BBE of the Act on addition made u/s 68 of the Act. We have noted from the 115BBE of the Act on addition made u/s 68 of the Act. We have noted from the 115BBE of the Act on addition made u/s 68 of the Act. We have noted from the

para-5.3 of the appellate order (sup 5.3 of the appellate order (supra) that the estimation by Ld. CIT(A) has ra) that the estimation by Ld. CIT(A) has

been made with the clear directions “….. been made with the clear directions “…..The addition made under section 68 The addition made under section 68

r.w.s. 115BBE is to be restricted to the profit so estimated, and the balance is to r.w.s. 115BBE is to be restricted to the profit so estimated, and the balance is to r.w.s. 115BBE is to be restricted to the profit so estimated, and the balance is to

be deleted…”. We do not find any fault in the order of the ld. CIT(A) as he has We do not find any fault in the order of the ld. CIT(A) as he has We do not find any fault in the order of the ld. CIT(A) as he has given a clear finding that the estimation of 5% is to be added u/s 68 r.w.s. given a clear finding that the estimation of 5% is to be added u/s 68 r.w.s. given a clear finding that the estimation of 5% is to be added u/s 68 r.w.s.

115BBE of the Act. Now once a conclusion of the income falling in the realm Now once a conclusion of the income falling in the realm Now once a conclusion of the income falling in the realm

of section 68 was taken, invocatio of section 68 was taken, invocation of section 115BBE of the Act was natural n of section 115BBE of the Act was natural

corollary. Thus, no fault can be find to the order of the Ld. CIT(A). Ground of corollary. Thus, no fault can be find to the order of the Ld. CIT(A). Ground of corollary. Thus, no fault can be find to the order of the Ld. CIT(A). Ground of

appeal no.4 of the assessee is also dismissed. appeal no.4 of the assessee is also dismissed.

dismissed. Order pronounced in the open court on 27th May, 2026 Order pronounced in the open court on

Sd/- Sd/- (ANUBHAV SHARMA ANUBHAV SHARMA) (AMITABH SHUKLA AMITABH SHUKLA) JUDICIAL MEMBER MEMBER ACCOUNTANT MEMBER ACCOUNTANT Dated: 27/05/2026 f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, Asst. Registrar, ITAT, New Delhi ITAT, New Delhi,