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Facts
The assessee's appeal for assessment year 2012-13 concerned proceedings under section 147 read with section 143(3). The lower authorities treated the assessee's cash deposits of Rs. 25.95 lakhs as unexplained, despite the assessee having withdrawn Rs. 48.40 lakhs in the same financial year.
Held
The Tribunal noted that the assessee's cash flow statement, demonstrating withdrawals of Rs. 48.40 lakhs and deposits of Rs. 25.95 lakhs, was not disputed by the lower authorities. It concluded that the cash deposits likely represented the assessee's own cash withdrawals and therefore the addition was not justified.
Key Issues
Whether cash deposits, which are supported by prior cash withdrawals as per an undisputed cash flow statement, can be treated as unexplained income?
Sections Cited
147, 143(3)
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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
ORDER This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)-3 [in short, the “CIT(A)”], Gurgaon’s order dated 22.10.2025 passed in case no. 10260/CIT(A)-3/GGN/2019-20, involving proceedings under section 147 r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.
Learned departmental representative refers to both the lower authorities’ respective assessment and lower appellate findings in question to vehemently contents that they have rightly treated the assessee’s impugned cash deposits amounting to Rs.25.95 lakhs as unexplained which deserves to be upheld before the tribunal.
I have given my thoughtful consideration to the assessee’s and the Revenue’s respective pleadings. It emerges from the CIT(A)’s lower appellate discussion at page 6 that the assessee had withdrawn a total amount of Rs.48.40 lakhs in the relevant financial year 2011-12 which also involved cash deposits of Rs.25.95 lakhs forming subject matter of addition. The assessee has further filed his cash flow statement which has not been disputed in both the learned lower authorities’ respective detailed discussion. The necessary inference which would arise in the given facts is that the assessee’s impugned cash deposits represent his almost double cash withdrawals made in the relevant financial year; and, therefore, no merit is found in the impugned addition which stands deleted in very terms.