MUKESH MITTAL,NANGAL CHOUDHARRY, HARYANA vs. INCOME TAX OFFICER WARD -1, NARNAUL

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.1619/धिल्ली/2026 (धि.ि. 2017-18) ITA No.1619/DEL/2026 (A.Y.2017-18)

Mukesh Mittal, Mukesh Khad And Beej Bhandar, Nangal Choudhary, Narnaul 123023, Haryana ...... अपीलार्थी/Appellant PAN: AOBPM2893J बिाम Vs. Income Tax Officer, Ward-1, Mahendergarh Road, Narnaul, Haryana 123001 ..... प्रधििािी/Respondent Circle, Hisar, Haryana अपीलार्थी द्वारा/Appellant by : S/Shir Rajesh Goel, Advocate & Prashant Goel, Chartered Accountant प्रधििािीद्वारा/Respondent by : Shri Manoj Kumar, Sr. DR सुििाई की धिधर्थ/Date of hearing : 21/05/2026 घोषणा की धिधर्थ/Date of pronouncement : 21/05/2026 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 14.08.2025, for Assessment Year 2017-18.

2 ITA No. 1619/DEL/2026 (A.Y.2017-18) addition u/s 69A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Further, the AO treated remains amount of cash sales i.e. Rs.56,45,000/- as assessee’s total sales turnover and estimated profit @10% on Rs.56,46,000/-. Aggrieved by the assessment order dated 24.09.2019, the assessee carried the issue in appeal before the CIT(A). The assessee produced books of accounts before the CIT(A) to substantiate that the cash deposits during the period relevant to the assessment year under appeal were out of cash sales. The CIT(A) accepted assessee’s business and also that the assessee in normal course of business is making cash sales and is depositing cash in his bank account, but upheld the addition of Rs.10,66,000/- only for the reason that the assessee failed to furnish cash vouchers relating to the demonetization period. With regard to estimation of gross profit @10% by the AO, the CIT(A) restricted the same to 8%. The ld. Counsel submits that the assessee has no grievance with regard to the said estimation of profit @8% on total turnover, hence, he is not assailing estimation of profit @8%. The ld. Counsel for the assessee pointed that in the preceding assessment year the total turnover of the assessee was more than Rs.1 crore. The assessee had filed return of income and the same was accepted by the Department. In the subsequent assessment year as well, the turnover of the assessee was in the range of Rs.80 lakhs to Rs.1 crore. In support of his submissions, the ld. Counsel referred to copies of acknowledgements of returns of income for preceding and succeeding assessment years.

3 ITA No. 1619/DEL/2026 (A.Y.2017-18) completed the assessment invoking the provisions of section 144 of the Act. During first appellate proceedings, the assessee furnished additional evidences in the form of books of accounts, which were accepted and examined by the CIT(A). A perusal of the impugned order shows that the CIT(A) has accepted the assessee’s manner of depositing cash from cash sales throughout the year and has raised doubt over the genuineness of cash deposit during demonetization only. No doubt has been raised by the CIT(A) with regard to the cash deposits prior to demonetization and post demonetization. Once the assessee has been able to establish that the assessee in normal course of business is making cash sales which were regularly deposited in the bank, there is no reason to doubt the genuineness of the cash deposit during demonetization. I find merit in the submissions of the assessee that the cash deposit during demonetization Rs.10,66,000/- is part of the total turnover for the Financial Year 2016-17. Accordingly, the addition of Rs.10,66,000/- separately made by the AO and upheld by the CIT(A) is deleted.

Order pronounced in the open court on Thursday the 21st day of May, 2026.

Sd/- Sd/- (VIKAS AWASTHY) न्याधयक सिस्य/JUDICIAL MEMBER धिल्ली/Delhi, धििांक/Dated 22/05/2026 NV/-

4 ITA No. 1619/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