LALA MAHABIR PRASAD & SONS HUF,DELHI vs. ACIT CENTRAL CIRCLE 32, DELHI

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ITA 8927/DEL/2025Status: DisposedITAT Delhi11 March 2026AY 2023-24Bench: Ms. MADHUMITA ROY (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)3 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 held that the credit entries, comprising interest already offered to tax and an income tax refund, did not warrant an addition under Section 69A. It found the addition to be palpably bad and deleted it, accepting the assessee's explanation.

What were the facts?

Following a search, an addition of Rs. 23,847/- was made under Section 69A for credit entries in the assessee's bank account, which included bank interest and an income tax refund for AY 2022-23. The assessee contended that these amounts were already offered to tax or were tax refunds, thus not constituting unexplained credits.

What were the issues?

Whether credit entries representing bank interest already offered to tax and an income tax refund can be treated as unexplained cash credits under Section 69A of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 250,Section 144,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : A : NEW DELHI

Before: Ms. MADHUMITA ROY

For Appellant: Shri Sankalp Malik, Advocate &, Shri Sanjay Malik, Advocate
For Respondent: Shri Rajesh Kumar, CIT-DR
Hearing: 09.03.2026Pronounced: 11.03.2026

(Appellant) (Respondent) Assessee by : Shri Sankalp Malik, Advocate & Shri Sanjay Malik, Advocate Revenue by : Shri Rajesh Kumar, CIT-DR Date of Hearing : 09.03.2026 Date of Pronouncement : 11.03.2026 ORDER PER MADHUMITA ROY, JM:

The instant appeal filed by the Assessee is directed against the order dated 29.10.2025 of the Ld. Commissioner of Income-tax (Appeals)-30, New Delhi [hereinafter referred to as the Ld. CIT(A)] u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the assessment order dated 30.03.2025 passed by the ACIT, CC-32, New Delhi (hereinafter referred to as ‘the ld. AO’) under Section 144 of the Act for Assessment Year 2023-24.

2.

Consequent to a search conducted on 31.01.2024, though no addition was made on the basis of the search material, Rs.23,847/- was added in the hands of the assessee under Section 69A of the Act on account of credit entries in account ending with 0341 maintained with the Bank of India the details whereof are as follows:- BANK OF INDIA A/C NO.603210100010341 DETAILS OF NARRATION OF CREDIT ENTRIES FOR THE YEAR 2022-23 DATE CREDIT PARTICULAR/NARRATION 07.05.2022 514/- INTEREST ALREADY OFFERED TO TAX 06.08.2022 538/- INTEREST ALREADY OFFERED TO TAX 13.09.2022 21,480/- INCOME TAX REFUND AY 2022-23 07.11.2022 628/- SB INTEREST ALREADY OFFERED TO TAX 06.02.2023 687/- SB INTEREST ALREADY OFFERED TO TAX 23,847/-

3.

It appears from the above that the receipts includes income tax refund and interest received from the bank which was offered to tax and, therefore, the addition tantamount to double addition not sustainable in the eyes of law as submitted by the ld. Counsel appearing for the assessee seems to be genuine. Furthermore, these particular aspect of the matter though brought to the notice of the Ld. Assessing Officer being ACIT, Central Circle- 32 Income Tax Building E-2 New Delhi -55 by and under the reply to show cause dated 24th March, 2025 no deliberation has been made by the Ld. Assessing Officer. On the other hand, the Ld.CIT(A) observed that no such explanation has been rendered by the assessee before the Ld. Assessing Officer. Relevant to mention that all the details filed here have been duly considered by us and explanation so rendered by the assessee is found to be acceptable. The ld. DR has not been able to rebut against the contention made by the assessee’s counsel.

4.

Having heard the Ld. Counsels appearing for the parties and having regard to the facts and circumstance of the matter particularly keeping in view that the four entries under question are nothing but interest which were already offered to tax and the fifth entry is the income tax refund for assessment year 2022-23, the addition is found to be palpably bad in the hands of the assessee and, thus, deleted.

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