ASHISH GUPTA,FARIDABAD vs. DCIT/ACIT-INT-TAX GURGAON, GURGAON

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ITITA 1/DEL/2026Status: DisposedITAT Delhi05 June 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 considered the rival submissions and the documents presented. It noted that the assessee had made efforts to reconcile deposits and withdrawals across eight bank accounts. A perusal of the statement dated 11.02.2025 indicated that deposits were matched with withdrawals. Regarding the remaining difference of Rs. 2,83,000/-, the Tribunal found it plausible and believable that this amount was deposited out of past savings. Therefore, the addition made by the Assessing Officer was deleted. The principle derived is that if an assessee provides a plausible explanation supported by documentary evidence for cash deposits, even a small remaining difference can be accepted as out of past savings, leading to deletion of the addition. The appeal of the assessee was allowed.

What were the facts?

The assessee, Ashish Gupta, is in appeal before the Income Tax Appellate Tribunal (ITAT) against an order passed under Section 144 r.w.s. 144C(13) of the Income Tax Act, 1961, by the DCIT/ACIT, International Taxation, Gurgaon. The Assessing Officer (AO) proposed additions of Rs. 1,02,00,000/- under Section 69 and Rs. 14,26,000/- under Section 68 for Assessment Year 2017-18, alleging substantial cash deposits. The assessee approached the Dispute Resolution Panel (DRP), where Rs. 1,02,00,000/- and Rs. 11,83,000/- out of Rs. 14,26,000/- were explained. Consequently, the AO made an addition of Rs. 2,83,000/- as an unexplained cash credit. The assessee is aggrieved by this remaining addition.

What were the issues?

1. Whether the addition of Rs. 2,83,000/- as an unexplained cash credit for Assessment Year 2017-18 is justified, turning on the provisions of Section 68 of the Income Tax Act, 1961. Assessee's Contentions: The assessee argued that all funds were explained. They submitted a cash transaction report from the State Bank, Faridabad, showing cumulative deposits of Rs. 11,83,000/- and cash withdrawals of Rs. 12,48,100/- during FY 2016-17. The assessee reiterated submissions made before the DRP, stating that Rs. 1,02,00,000/- comprised interest income from NRE Fixed Deposits (not taxable in India) and savings from income in Norway. Regarding cash deposits, bank statements for overdraft accounts against NRE FDs were provided, showing withdrawals totaling Rs. 12,92,000/- for family marriage and loans. The difference of Rs. 2,34,000/- was explained as savings from the assessee and his wife over 10 years. The assessee had no income in India in FY 2015-16 & 2016-17 and thus did not file ITRs for those years. Revenue's Contentions: The Revenue relied on the orders of the authorities below.

Which sections of the Income-tax Act were involved?

Section 68,Section 69,Section 144,Section 144C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “D” NEW DELHI

Before: SHRI VIKAS AWASTHY & SHRI SANJAY AWASTHI

For Appellant: Shri Kaustubh Pandey, Adv
For Respondent: Shri M.S. Nethrapal, CIT DR
Hearing: 07.05.2026

IT(IT)A No.1/Del/2026 ASHISH GUPTA, FARIDABAD IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D” NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER IT(IT)A No.1/Del/2026 Assessment Year: 2017-18 ASHISH GUPTA, Vs. DCIT/ACIT, H.No.678, Sector-15, Faridabad, International Taxation, Haryana 121007. HSIIDC BUILDING, Vanijya Nikunj, PAN No. ANBPG3035F Udhyog Vihar, Phase-V, Gurgaon, Haryana 122001. Appellant Respondent Assessee by Shri Kaustubh Pandey, Adv. Revenue by Shri M.S. Nethrapal, CIT DR Date of hearing: 07.05.2026 Pronouncement on 05.06.2026 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

This appeal arises from order passed u/s 144 r.w.s. 144C(13) of the Income Tax Act, 1961 (hereafter as “the Act”), by Ld. DCIT/ACIT-Int. Tax, Gurgaon. In this case, there was an allegation that the assessee had deposited substantial amounts of cash during AY 2017-18. The Ld. AO proposed to add the following amounts:

i. Rs.102,00,000/- u/s 69 of the Act; ii. Rs.14,26,000/- u/s 68 of the Act.

1.1 The assessee approached the DRP where he could succeed in explaining the deposit of Rs.1,02,00,000/- and also deposit of

IT(IT)A No.1/Del/2026 ASHISH GUPTA, FARIDABAD Rs.11,83,000/- out of a total alleged unexplained deposit of Rs.14,26,000/-. Thereafter, the Ld. AO added Rs.2,83,000/- as an unexplained cash credit.

1.2 The aggrieved assessee has approached the ITAT challenging this particular addition.

2.

Before us the Ld. AR filed a cash transaction report made available from the State Bank, Branch Sector-24, Faridabad. Through this statement it was shown that there were several accounts maintained by the assessee in the said bank branch and the cumulative deposits during FY 2016-17 were Rs.11,83,000/- and cash withdrawal was Rs.12,48,100/-. The Ld. AR also reiterated the submissions made before the Ld. DRP and argued that every bit of funds were explained and the addition was unjustified. The Ld. AR read out from the submissions made before the Ld. DRP as under: -

“I had 7 NRE Fixed Deposits from 2004-05 which were renewed in the financial year of 2015-16, 2016-17. The interest income from these NRE Fixed Deposits are not taxable in India. This is my savings from income in Norway which I deposited in India. I am sending copy Of The FDs. They make a total of Rs.1,02,00000 which has come under your observation. Regarding Cash Deposits I am sending Bank Statements for FY 2015-16, 2016-17 of my Overdraft Accounts against my NRE FDS. I had withdrawn Approx. Rs.12,92,000 due to marriage in the family and loan given to family members and friends. Account No. 65223266034 Withdrawal: Rs.5,92,000 Account No. 65244924920 Withdrawal: Rs.2,32,000 Account No. 65080958205 Withdrawal: Rs.56,000 Account No.

IT(IT)A No.1/Del/2026 ASHISH GUPTA, FARIDABAD 65073366525 Withdrawal: Rs.4,12,000 Total Rs.12,92,000 I had deposited the money back in my account once money was returned to me. Difference of Rs.2,34,000 was money saved by myself and my wife over a period of 10 years which we deposited back in our accounts. I had no income in India in FY 2015-16 & 2016-17. Thats why I have not filed ITR for those Years. I visited State Bank of India Sector 24 today and managed to get all these statements as all the accounts are closed and from 10 years back. I have no intention to avoid taxes in India. I hope I have clarified myself with the bank statements and copy of all the NRE Fixed Deposits.” 2.1 The Ld. DR relied on the orders of the authorities below.

3.

We have carefully considered the rival submissions and have gone through the documents before us. It is evident that the assessee has taken pains to piece together deposits and withdrawals across his eight bank accounts. A perusal of the statement dated 11.02.2025 extracted (supra) reveals that the deposits have been matched with the withdrawals and regarding the small difference of Rs.2,83,000/- it is plausible and believable that such amount has been deposited out of past savings. Accordingly, the addition made by the Ld. AO’s is hereby deleted and the appeal of the assessee is allowed.

Order pronounced in the open court on 05.06.2026

Sd/- Sd/- (VIKAS AWASTHY) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 05.06.2026 *Kavita Arora, Sr. P.S. Copy forwarded to:

IT(IT)A No.1/Del/2026 ASHISH GUPTA, FARIDABAD 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Sr. No. Particulars Date 1 Date of dictation of Tribunal Order 03.06.2026 2 Date on which typed draft Tribunal Order is placed before the 04.06.2026 Dictation Member 3 Date on which typed draft Tribunal Order is placed before the 05.06.2026 other Member (in the case of DB) 4 Date on which the approved draft Tribunal Order comes to the 05.06.2026 Sr. P.S. /P.S. 5 Date on which the fair Tribunal Order is placed before the 05.06.2026 Dictating Member for sign 6 Date on which the fair Order is placed before the other Member 05.06.2026 for sign (in the case of DB) 7 Date on which the signed order comes back to the Sr. P.S. /P.S 05.06.2026 for uploading on ITAT website 8 Date of uploading, if not, reason for not uploading 05.06.2026 9 Date on which the file goes to the Bench Clerk 05.06.2026 10 Date on which order goes for xerox 11 Date on which the file goes for endorsement 12 Date on which the file goes to the Superintendent/O.S. for checking 13 Date on which the file goes to the Assistant Registrar for signature on the order 14 Date on which the file goes to dispatch section for dispatch the Tribunal Order 15 Date of dispatch of order 16 Date on which file goes to Record Room after dispatch the order

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