NS ASSOCIATES ,UTTARPRADESH vs. ITO WARD -2 (2) (5) , GHAZIABAD

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ITA 9012/DEL/2025Status: DisposedITAT Delhi22 January 2026AY 2017-183 pages
AI SummaryN/A

What did the Tribunal hold?

The Tribunal observed that the assessee had previously withdrawn a total of Rs. 43.94 lakhs and Rs. 17 lakhs from its bank accounts, an amount significantly higher than the Rs. 26 lakhs deposited. This led to a presumption that the cash deposited was merely a re-deposit of earlier withdrawals, thus not unexplained. Consequently, the addition made by the lower authorities was deleted.

What were the facts?

The assessee filed an appeal against the order of CIT(A)/NFAC for AY 2017-18, where cash deposits of Rs. 26.17 lakhs made during demonetization were treated as unexplained under section 69A read with section 115BBE of the Income-tax Act, 1961. This addition was initially made in the assessment order dated 25.12.2019 and upheld by the lower appellate authority.

What were the issues?

Whether cash deposits during demonetization, treated as unexplained under section 69A r.w.s. 115BBE, could be considered explained if they were re-deposits of previously withdrawn cash.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 69A,Section 115BBE

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: "SMC" NEW DELHI

BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER

ITA No.9012/Del/2025 Assessment Year: 2017-18

N S Associates, | Vs. | Income Tax Officer, Ward LG-14, Suchitra Complex, | 2(2)(5), Ambedkar Road, Ghaziabad | CGO Complex-II, Hapur Uttar Pradesh-201010 | Chungi, Ghaziabad, Uttar Pradesh-201002 PAN: AALFN5858J (Appellant) | (Respondent)

Assessee by | Shri Sahil Sharma, Adv. & Shri Sanjay Prashar, Adv. Department by | Sh. Manoj Kumar, Sr. DR

Date of hearing | 22.01.2026 Date of pronouncement | 22.01.2026

ORDER

This assessee's appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the "CIT(A)/NFAC"], Delhi's DIN & Order No:ITBA/NFAC/S/250/2025-26/1083088688(1), dated 28.11.2025 involving proceedings under section 147 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act').

Heard both the parties. Case file perused.

ITA No.9012/Del/2025

2.

It transpires during the course of hearing that both the

learned lower authorities have treated the assessee's cash

deposits during demonetization amounting to Rs.26.17 lakh as

unexplained under section 69A r.w.s. 115BBE of the Act; in

assessment order dated 25.12.2019 and upheld in lower

appellate discussion.

3.

That being the case, the tribunal hereinabove notices from

the perusal of the assessee's twin bank accounts statement

maintained in Axis Bank that it had already withdrawn total

cash of Rs.43.94 lakhs and Rs.17 lakhs, whereas, the cash

deposits addition of is much a less figure of Rs.26 lakhs only.

The same gives a rise to a presumption in assessee's favour that

it had re-deposited the cash earlier withdrawn which could not

have been treated as unexplained. The impugned addition

stands deleted in very terms.

4.

The assessee's appeal is allowed.

Order pronounced in the open court on 22nd January, 2026.

Sd/-

(SATBEER SINGH GODARA) JUDICIAL MEMBER

Dated: 22nd January, 2026.

f{x~{tÜ f{x~{tÜ

Copy forwarded to:

- 1. Appellant - 2. Respondent - 3. CIT - 4. CIT(A) - 5. DR

Asst. Registrar, ITAT, New Delhi

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