JASBIR SINGH,DELHI vs. ITO,WARD-57(4), DELHI

ITA 4929/DEL/2024Status: DisposedITAT Delhi22 May 2026AY 2011-128 pages
AI SummaryPartly Allowed

What were the facts?

The assessee declared a low income despite significant cash deposits in bank accounts. The Assessing Officer (AO) reopened the assessment and added the entire cash deposits as unexplained credit. The Commissioner (Appeals) dismissed the assessee's appeal.

What did the Tribunal hold?

The Tribunal held that while the assessee's explanation for the cash deposits through mobile phone trading was plausible, the AO erred in adding the entire amount. A reasonable Gross Profit (GP) rate should be applied to the turnover.

What were the issues?

Whether cash deposits in bank accounts are unexplained credit when supported by import and sales documents, and whether the reopening of assessment was valid.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 147,Section 151,Section 250,Section 292BC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “C” BENCH: NEW DELHI

Before: SHRI YOGESH KUMAR U.S & SHRI MANISH AGARWAL

For Appellant: Ms. Gunjan Jain, CA
For Respondent: Shri Dayainder Singh Sidhu, CIT DR
Hearing: 25.03.2026Pronounced: 22.05.2026

PER MANISH AGARWAL, AM : The present appeal is filed by the assessee against the order dated 12.07.2024 by Ld. Commissioner of Income Tax (A), NFAC, Delhi [“Ld. CIT(A)”] in Appeal No. CIT(A), Delhi-19/10474/2018-19 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 31.12.2018 passed u/s 143(3)/147 of the Act pertaining to Assessment Year 2011-12. 2. Brief facts of the case are that the assessee is an individual, filed his return of income on 18.02.2012, declaring total income of INR 1,59,845/-. The AO had information that assessee has two bank accounts in which he had made cash deposits of INR 9,11,38,235/- in Axis Bank, Karol Bagh, New Delhi and INR 2,41,03,076/- in Indusind Ba

The order continues below.

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