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Facts
The assessee filed a return for AY 2017-18 declaring a loss of Rs. 2,33,311/-. The case was selected for scrutiny due to significant cash deposits during demonetization. The assessment was completed under Section 144, resulting in an assessed income of Rs. 58,26,165/-, including an addition for unexplained cash deposits under Section 68.
Held
The Tribunal noted that the assessee filed additional evidences during appellate proceedings, but these were not admitted by the CIT(A) as they were not submitted during assessment proceedings without sufficient cause. The Tribunal decided to restore the matter to the AO for a de novo assessment to allow the assessee to furnish documentary evidence.
Key Issues
Whether the CIT(A) was justified in not admitting additional evidence and dismissing the appeal, and whether the matter should be remanded for de novo assessment to allow the assessee to furnish evidence.
Sections Cited
250, 144, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: SHRI MAHAVIR SINGH, HON’BLE & SMT. RENU JAUHRI, HON’BLE
The above captioned appeal is preferred by the assessee against the order dated 16.09.2025, passed by Ld. CIT(A)/NFAC, Delhi u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as, “Act”] for A.Y. 2019-20. The assessment was framed out by the Assessing Officer [for short, ‘AO’] u/s 144 of the Act, vide order dated 22.12.2019.
Brief facts are that the assesee filed return for A.Y. 2017-18, declaring loss of Rs. 2,33,311/-. The case was selected for scrutiny on account of huge cash deposits made during the demonetization period. In the absence of any compliance by the assessee, assessment was completed u/s 144 at an assessed income of Rs. 58,26,165/-, after making addition on account of unexplained cash
1 | P a g e 6394_DEL_2025_Hari Roadwayas Pvt Ltd deposits u/s 68 of the Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A).
The assessee filed additional evidences during the appellate proceedings in response of which remand report was sought from the Ld. AO. These evidences were not admitted by the Ld. CIT(A), after observing that the assessee was not prevented by any sufficient cause to submit the same during the assessment proceedings and he dismissed the assessee’s appeal vide order dated 16.09.2025. Aggrieved, the assessee has filed an appeal before the Tribunal.
We have heard the rival submissions and perused the material on record. In the interest of justice, we deem it appropriate to restore the matter to Ld. AO for de novo assessment after providing due opportunity to assessee to furnish the documentary evidences in support of his contentions. The assessee is also directed to be vigilant and make requisite compliance before the Ld. AO to enable him to pass the order on merits.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 28-01-2026.