RAGHUBIR SINGH, SIRSA,SIRSA vs. DEPUTY COMMISSIONER OF INCOME TAX, GURGAON-2, GURGAON

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.4973/Del/2025 (ASSESSMENT YEAR: 2022-23) Raghubir Singh, Deputy Commissioner of M/s Jagdev Trading Co., Income Tax, Gurgaon. Kanganpur Road, Vs. Sirsa, Haryana-125055. PAN-ASVPS2138L (Appellant) (Respondent) Assessee by Shri Kushal Chopra, CA Department by Shri Ajay Kumar Arora, Sr. DR Date of Hearing 05/02/2026 Date of Pronouncement 24/04/2026 O R D E R PER MANISH AGARWAL, AM: This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals)-3, Gurgaon [CIT(A) in short], dated 24.06.2025 in Appeal No. CIT(A), Gurgaon-3/10059/2021-22 arising out of the order passed u/s 143(3) of the Income Tax Act, 1961 (the Act, in short) dated 13.02.2024 for Assessment Year 2022-23. 2. Brief facts of the case are that assessee is a timber merchant and running his business in the name of M/s Jagdev Trading Company. Assessee was intercepted by Punjab Police Authorities on 22.01.2022 at Barnala and cash of Rs.11,00,000/- was found from his possession. It was explained by the assessee that he was carrying the said cash for purchase of Timber. Assessee further claimed that out of total cash of Rs.11,00,000/- found with him, a sum of Rs. 2,00,000/- belonged to his son Shri

2 ITA No.4973/Del/2025 Raghubir Singh vs. DCIT Gurjant Singh. The assesse has filed copy of ITR, computation and audited books of accounts of his proprietary firm to explain the source of income. The AO disbelieved the claim of the assessee and by holding that assessee is having CC limits which were almost fully utilized and, therefore, there is no reason for the assessee to carry such huge cash with him. Accordingly, the AO treated this cash as unexplained money u/s 69A of the Act and made the addition for the same. 3. Against the said order, assessee filed an appeal before the Ld. CIT(A) who dismissed the appeal of the assessee. Thus, the assessee is in appeal before the Tribunal. 4. Heard both the parties at length and perused the material available on record. It was the claim of the assessee that when he was travelling to Punjab for purchase of timber, Punjab Police Authorities intercepted him and found cash of Rs.11,00,000/- from his possession, out of which Rs.9,00,000/- belonged to himself and balance Rs.2,00,000/- were belonged to his son Sh. Gurjant Singh. The Assessee also filed the copy of cash book as per which there was cash balance of Rs.17,67,219/- in the cash book out of which Rs.9,00,000/- were recorded as given to the proprietor i.e. the assessee. The AO has not disputed the entries in cash book nor raised any doubts in the books of accounts produced before him and alleged that no expenditure were booked in the month of January, 2022 just before the cash was seized. Regarding the source of balance of Rs.2 lacs, claimed as related to the son of the assessee, copy of his bank statement was filed. As per the same, his son has withdrawn a sum of Rs.1,50,000/- on c20th January, 2022 which is evident from the PB page 48. The assessee also filed copy of assessment order in the case of son of the assessee wherein addition of Rs.2,00,000/- was made on protective basis in his case. Once the source of cash of Rs. 2,00,000/- is established out of bank withdrawal, same could not be added as unexplained money.

3 ITA No.4973/Del/2025 Raghubir Singh vs. DCIT