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Facts
The assessee's appeal arose from an order treating cash deposits during demonetization as unexplained. The Assessing Officer had previously submitted a remand report accepting the assessee's ledgers and P&L account, finding him engaged in the sale of fruits and vegetables.
Held
The Tribunal held that the Revenue could not be treated as an aggrieved party when the Assessing Officer filed a favorable remand report supporting the assessee's case. The impugned addition was deleted.
Key Issues
Whether the Revenue can be considered an aggrieved party when the Assessing Officer's remand report supports the assessee's case, and if cash deposits during demonetization are unexplained despite a favorable remand report.
Sections Cited
147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal /2025 for assessment year 2012-13 arises against CIT(A)/ NFAC, Delhi’s order dated 20.08.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1079784818(1), in proceedings u/s 147 r.w.s. 144of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused 2. It emerges during the course of hearing that both the learned lower authorities have treated the assessee’s cash deposits during demonetization amounting to Rs. 49,92,584/- as unexplained despite the fact that the Assessing Officer appears to have submitted his remand report dated 14.05.2024 finding him as not only engaged in sale of fruits and vegetables but also accepting all of his ledgers and the P&L account as submitted before the CIT(A)/NFAC as additional evidence.
This clinching factual position has gone unrebutted from the Revenue side.
Various judicial precedents i.e. Smt. B. Jayalakshmi v. ACIT (2018) 96 taxmann.com 486 (Mad.); and CIT v. D.M. Purnesh (2020) 426 ITR 169 (Kar.) have settled the issue that Revenue could not even be treated as an aggrieved party once the Assessing Officer files his favourable remand report supporting the assessee’s case. I, therefore, delete the impugned addition of Rs. 49,92,584/- in very terms.
This assessee’s appeal is allowed. Order pronounced in open court on 27.11.2025.