VIKAS BHOLA,NEW DELHI vs. ITO WARD 51 (1), NEW DELHI

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ITA 1748/DEL/2026Status: DisposedITAT Delhi20 April 2026AY 2017-184 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 found that the assessee had provided month-wise details of cash sales and deposits, demonstrating a consistent pattern. The Tribunal accepted that the cash deposits were satisfactorily explained as arising from cash sales and available cash-in-hand.

What were the facts?

The assessee, a jewellery trader, deposited Rs. 32,99,208/- in their bank accounts during the demonetization period. The assessee claimed these deposits were from cash sales and existing cash-in-hand.

What were the issues?

Whether the cash deposits made during the demonetization period were adequately explained by the assessee's cash sales and cash-in-hand.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

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

Hearing: 16/04/2026Pronounced: 16/04/2026

आयकर अपीलीय अधिकरण धिल्ली पीठ “एस एम सी”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.1748/धिल्ली/2026 (धि.ि. 2017-18) ITA No.1748/DEL/2026 (A.Y.2017-18)

Vikas Bhola, C/o. Mohan Jain & Co., 204, Triveni Complex, E-10/11/12, Jawahar Park, Laxmi Nagar, Near Heera Sweets, New Delhi 110045 ...... अपीलार्थी/Appellant PAN: AHUPB-0872-C बिाम Vs. Income Tax Office, Ward-51(1), ..... प्रधििािी/Respondent Civic Centre, Minto Road, New Delhi 110002 अपीलार्थी द्वारा/Appellant by : Shri C M Jain, Chartered Accountant प्रधििािीद्वारा/Respondent by : Shri Manoj Kumar, Sr. DR सुििाई की धिधर्थ/Date of hearing : 16/04/2026 घोषणा की धिधर्थ/Date of pronouncement : 16/04/2026 आिेश/ORDER PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 30.12.2025, for Assessment Year 2017-18.

2.

Shri C.M. Jain, appearing on behalf of the assessee, submits that the solitary issue raised in the present appeal pertains to the addition of Rs.32,99,208/- made u/s. 68 r.w.s. 115BBE of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on account of alleged unexplained cash deposits in the bank account during demonetization period. The ld. AR submits that the assessee is engaged in trading of jewellery under proprietorship firm M/s. G.D. Jewellers. The ld. Counsel referred to the month-wise details of cash sales and cash deposits for the period from 01.04.2016 to 08.11.2016, placed at pages 170 and 171 of the paper book, to

ITA No.1748/DEL/2026 (A.Y.2017-18)

demonstrate the pattern of cash sales and corresponding cash deposits in the Bank throughout the year. He further submitted that similar cash sales and cash deposit pattern was in the Financial Year 2015-16. The ld. Counsel submitted that the cash deposits in the bank account during demonetization period were out of cash-in- hand and regular business receipts from cash sales. He, therefore, prayed for deletion of the addition.

3.

Per contra, Shri Manoj Kumar, representing the department vehemently placed reliance on the decision of CIT(A) and prayed for dismissing appeal of the assessee.

4.

Both sides heard. The solitary addition made by the Assessing Officer in the instant case is on account of cash deposits in the bank account during demonetization period. The case of the assessee is that cash deposits are out of cash sales during the relevant period. The assessee has furnished month-wise details of cash sales and corresponding cash deposits for the period from 01.04.2016 to 08.11.2016, the same is reproduced as under:-

Month wise Opening Cash sales Cash Cash Expenses & Closing cash cash in hand deposit in withdrawn Drawings in hand Bank from the bank (April-2016) 282668.00 310162.00 270000.00 500000.000 225100.00 797730.00 (May-2016) 797730.00 0.00 0.00 0.00 35600.00 762129.00 (June-2016) 762129.00 154934.00 200000.00 0.00 35200.00 681864.00 (July-2016) 681864.00 649728.00 700000.00 0.00 34501.00 597091.00 (August- 597091.00 183790.00 150000.00 0.00 35000.00 595881.00 2016) (September- 595881.00 240687.00 200000.00 0.00 34900.00 601668.00 2016) (October- 601668.00 3332487.00 600000.00 0.00 66746.00 3267409.00 2016) (November- 3267409.00 557899.00 0.00 0.00 29500.00 3795807.00 2016)

3 ITA No.1748/DEL/2026 (A.Y.2017-18) 5. A similar pattern of cash sales and deposits is evident from the sales chart furnished by the assessee for the immediately preceding financial year. From the chart furnished by assesse it emanates that the assessee was having substantial cash in hand in the month of October 2016 and owing to festival season, there were increase in cash sales and corresponding cash deposits in October, 2016 i.e. prior to demonetization. Considering entire of facts, I find that the assessee has been able to satisfactorily explain the source of cash deposits amounting to Rs.32,99,208/- as arising from cash sales and cash-in-hand available as on the date of demonetization, deposited in two ICICI Bank accounts bearing Nos. 663405500164 and 663405500058. The entire cash was deposited on a single day i.e. 16.11.2016. The Bank statements are at page 132 & 142 of the paper book.

6.

Considering entire facts of the case, I find merit in the submissions of the assessee. Accordingly, addition of Rs.32,99,208/- u/s.68 of the Act is directed to the deleted.

7.

In the result, impugned order is set aside and appeal of the assessee is allowed.

Order pronounced in the open court on Thursday the 16th day of April, 2026.

Sd/- Sd/- (VIKAS AWASTHY) न्याधयक सिस्य/JUDICIAL MEMBER धिल्ली/Delhi, धििांक/Dated 20/04/2026 NV/-

4 ITA No.1748/DEL/2026 (A.Y.2017-18)

प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलार्थी/The Appellant , 1. प्रधििािी/ The Respondent. 2. 3. The PCIT/CIT(A) धिभागीय प्रधिधिधि, आय.अपी.अधि., दिल्ली /DR, ITAT, धिल्ली 4. गार्ड फाइल/Guard file. 5.

BY ORDER, //True Copy//

(Asstt. Registrar) ITAT, DELHI

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