MOHD SHAMIM,DELHI vs. ITO, WARD 48(1), DELHI

ITA 6659/DEL/2026Status: DisposedITAT Delhi30 September 2026AY 2012-133 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while the lower authorities had found that the assessee had not been able to prove his eligibility for presumptive taxation under section 44AD, a lumpsum addition of Rs. 2.5 lakhs in the assessee's hands would be just and proper in the given facts, considering the assessee's and his family's socio-economic status and accumulated past savings. This decision was made in the larger interest of justice, with a specific rider that it shall not be treated as a precedent. Necessary computation shall follow. The Tribunal did not expressly leave any issue undecided.

What were the facts?

The assessee, Mohd Shamim, is in appeal against the order of the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)-4, Kolkata, dated 14.10.2025. This order was passed pursuant to proceedings under section 143(3) read with section 147 of the Income-tax Act, 1961, for the assessment year 2012-13. The core of the dispute concerns cash deposits amounting to Rs. 11,48,364/- which were treated as unexplained by both the Assessing Officer and the first appellate authority. The assessee contends that these deposits represent receipts from his old tyres business and that he is eligible for presumptive taxation under section 44AD of the Act.

What were the issues?

1. Whether the Tribunal had to decide if the assessee's cash deposits of Rs. 11,48,364/- were unexplained income for assessment year 2012-13, turning on the provisions of section 147 and section 143(3) of the Income-tax Act, 1961. Assessee's contentions: The assessee argued that the source of the impugned cash credits was explained as receipts from his old tyres business, supported by relevant details. He further claimed eligibility for presumptive taxation under section 44AD of the Act. The assessee contended that these explanations were wrongly rejected by the lower authorities. Revenue's contentions: The judgment records that the Revenue could hardly dispute that the lower authorities had not considered the assessee's and his family's socio-economic status and accumulated past savings. No specific arguments from the Revenue are recorded beyond this observation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 44AD

AI-generated summary — verify with the full judgment below

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

Before: SHRI SATBEER SINGH GODARA

For Appellant: CA Sh. Arif Noman, CA
Hearing: 04.08.2026Pronounced: 04.08.2026

This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 4, Kolkata’s order dated 14.10.2025 having DIN and order no. ITBA/APL/S/250/2025-26/1081738135(1), involving proceedings under section 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

2.

It is evident at the outset during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authorities’ respective assessment and lower appellate findings treating his cash deposits amounting to Rs.11,48,364/- as unexplained forming the sole subject matter of tribunal’s apt adjudication herein.

3.

That being the case, th

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →