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Facts
The assessee's case was re-opened based on information of significant cash deposits. The Assessing Officer treated a substantial portion of these deposits (Rs. 2,23,99,000/-) as unexplained money under Section 69A for AY 2020-21, leading to an enhanced assessment. The CIT(A) dismissed the assessee's appeal, citing a lack of documentary evidence.
Held
The Tribunal decided to remand the matter back to the Assessing Officer. This is to allow for a fresh consideration of the documentary evidence and contentions raised by the assessee, ensuring a reasonable opportunity of being heard.
Key Issues
Whether the additions made by the AO are justified and if the assessee was afforded a proper opportunity to present evidence.
Sections Cited
69A, 148, 250, 68, 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A, NEW DELHI
Before: SHRI MAHAVIR SINGH, HONBLE & MRS. RENU JAUHRI, HONBLE
The above captioned appeal is preferred before the Tribunal against the order dated 15.09.2025, passed by Ld. CIT(A)/NFAC, u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as, “Act”) in Appeal No. NFAC/2019- 20/10440522 for Assessment Year [A.Y.] 2020-21.
The Assessee has raised grounds of Appeal
which are reproduced as below: “ Ground No.
1. That on the facts and in circumstances of case and in law, in making and addition of Rs. 2,23,99,000/- u/s 69A of 1 | P a g e
Ground No. 2 That on the facts and in circumstances of case and in law, in making and addition of Rs. 19,58,448/-by the disallowance of expenses to the assessment unit.
Ground No. 3 That on the facts and in circumstances of case and in law, in making and addition of Rs. 3,33,676/- by the disallowance of other expenses to the assessment unit.
Ground No. 4 That on the facts and in circumstances of case and in law, in making and addition of Rs. 8,00,000/- by the disallowance of other expenses to the assessment unit.
Ground No. 5 That on the facts and in circumstances of case and in law, in making and addition of Rs. 70,94,025/-by the disallowance of unexplained cash credits u/s 68 being unexplained Current liabilities and provisions/current liabilities/sundry creditors to the assessment unit.
Ground No. 6 That on the facts and in circumstances of case and in law, in making and addition of Rs. 32,73,278/-by unexplained investment u/s. 69 as advance towards TDI Flat of Rs. 23,73,278/- & advance to Shalini Kohli of Rs. 9,00,000/- to the assessment unit.
The appellant craves leave to add, amend or alter any of the grounds mentioned above either before or at the time of hearing of the case. ”
Brief facts of the case are that the assessee filed return for A.Y. 2020-21 on 04.01.2021, declaring income of Rs. 5,55,490/-. In view of the information 2 | P a g e Puneet Kohli available with the department regarding cash deposits to the tune of Rs. 3,54,07,511/- and Rs. 2,23,99,000/- in the assessee’s current accounts, the case was re-opened and a notice u/s 148 was issued on 29.03.2024. As the assessee failed to furnish any documentary evidence in support of the claim that cash deposits of Rs. 2,23,99,000/- were on account of trading of ginger carried out by his proprietary concern as a licensed agent of APMC, the Ld. AO treated this amount as unexplained money u/s 69A while accepting the assessee’s explanation that Rs. 3,54,07,511/- were cash deposits of his father’s proprietary concern, M/s/ Lala Amardas Puran Chand Kohli & Co., where the assessee was only an authorized signatory. Assessment was completed at an income of Rs. 3,64,18,689/- after making further disallowance of expenses and addition on account of unexplained cash credits etc.
Aggrieved, the assessee preferred an appeal before Ld. CIT(A). However, Ld. CIT(A) dismissed the assessee’s appeal on the ground that requisite supporting documentary evidences were not filed by the assessee. Further aggrieved, the assessee has filed the present appeal before the Tribunal.
Before us, Ld. AR has filed a voluminous paperbook and has requested for remand back to the Ld. AO for fresh consideration of the documentary evidences in support of assessee’s contentions.
3 | P a g e Puneet Kohli After hearing both the parties and in the interest of justice, we deem it appropriate to remand the matter to the Ld. AO for fresh consideration on merits after giving reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 14 -01-2026.