LOVKESH BAJAJ,DELHI vs. ITO,WARD-28(1), NEW DELHI

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ITA 3170/DEL/2024Status: DisposedITAT Delhi28 November 2024AY 2017-18Bench: Sh. Satbeer Singh Godara (Judicial Member)2 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 found no reason to sustain the impugned addition, reasoning that the remaining amount of Rs. 2.35 lacs could be attributed to the assessee's past savings, considering his social and economic status. Consequently, the assessee's sole substantive ground of appeal was accepted.

What were the facts?

The assessee appealed against the CIT(A)'s order for AY 2017-18, which upheld an addition of Rs. 2.35 lacs under section 68 for unexplained cash credit. The Assessing Officer had initially treated cash deposits in three bank accounts as unexplained, but it was later found that only one account, with deposits totaling Rs. 2.35 lacs, was in the assessee's name.

What were the issues?

Whether the addition of Rs. 2.35 lacs as unexplained cash credit under section 68 of the Income Tax Act, 1961, was justified, particularly when the amount could be attributed to the assessee's past savings.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

Hearing: 14.11.2024

ORDER This assessee’s appeal for Assessment Year 2017-18, arises against the order of CIT(A)/NFAC, Delhi dated 18.06.2024 in case No. ITBA/NFAC/S/250/2024- 25/10565697798(1) in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “The Act”).

2.

Heard both these parties at length. Case files perused.

3.

It is emerges during the course of hearing that the assessee’s aggrieved against the CIT(A)’s action herein upholding the assessment findings making section 68 unexplained cash credit addition of Rs.14.86 lacs to the extent of Rs.2.35 lacs only.

4.

I have given my thoughtful consideration. Both the learned representatives respective stands and find no reason to sustain the foregoing impugned addition. This is for the precise reason that the learned Assessing Officer had admittedly treated cash Lovkesh Bajaj deposits in three Indian bank account as assessee’s unexplained cash credit whereas it emerged in the lower appellate proceedings that only one of the said account(s) was in his name which involved Rs.2.35 lacs cash deposits as upheld herein.

5.

Faced with this situation, I am of the considered view that this remaining amount of Rs.2.35 lacs could indeed be attributed to assessee’s past savings keeping in mind his social economic status. His instant sole substantive ground is accepted therefor.

6.

This assessee’s appeal is allowed. Order Pronounced in the Open Court on 28/11/2023.

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