MOHD. SHARFUDDIN,MORADABAD vs. ITO 1(1), MORADABAD

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH,
NEW DELHI

BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER

ITA No. 4909/DEL/2025 [A.Y 2017-18]
Prop. M/s A.L Raheem Overseas

Ward - 1(1)
R/o H. No. 94, Post Galsheed

Moradabad
Near Purani Masjid, Guiyan Bagh

U.P.
Prince Road, Moradabad, U.P.

PAN: DALPS 3657 D

(Appellant)

(Respondent)

Assessee By : Shri Mayank Patawari, Adv

Shri Akash Ojha, Adv

Department By : Shri Om Prakash, Sr. DR

Date of Hearing
: 26.11.2025

Date of Pronouncement : 26.11.2025

PER NAVEEN CHANDRA, AM :- This appeal by the assessee is directed against the order of the ld. NFAC, Delhi dated 11.06.2025 pertaining to A.Y 2017-18. 2. Briefly stated, the facts of the case are that the assessee filed his Return of Income on 31.10.2017 declaring an income of Rs. 5,82,760/-. Return was selected for scrutiny assessment through CASS and [A.Y 2017-18] The AO found that cash of Rs 82,77,000/- was deposited by the assessee during the demonetization period. In absence of any explanation or compliance from the assessee, the AO rejected the books of account u/s 145(3) and framed the assessment vide order u/s 144/143(3) dated 29.11.2019 wherein an addition of Rs. 82,77,000/- was made u/s 69A of the Act. Against the addition, the assessee appealed before the CIT(A) who confirmed the addition. The aggrieved assessee is now before us. 4. Before us, the Ld. AR vehemently argued that the Assessing Officer has rejected the books of account of the assessee arbitrarily. It is the say of the ld. counsel for the assessee that the Assessing Officer could not substantiate his view that how the cash deposit of the assessee is unexplained money and the assessee has earned extra income other than the disclosed in his financial statements. The Assessing Officer has no material and valid reason for the addition. 5. Per contra, the Ld. DR has relied upon the orders of the Assessing Officer and the CIT(A). 6. We have heard the rival submissions and perused the materials available on record. From the entire conspectus of events, we find that the assessee should have been given a proper and reasonable opportunity to explain its position on the cash deposit. We are therefore [A.Y 2017-18] of the considered opinion, that in the interest of justice and balance of convenience, the issue should be remitted back to the file of the Assessing Officer for examining the issue properly. We therefore, consider it fit to set aside the orders of the CIT(A)/Assessing Officer and direct the Assessing Officer to give a reasonable opportunity to the assessee and examine and adjudicate on the issue of cash deposit afresh. The assessee is also directed to furnish all documents/evidence as and when required by the AO for examination. In view of the same, the appeal of the assessee is allowed for statistical purposes. 7. In the result, appeal of assessee in ITA No. 4909/DEL/2025 is allowed for statistical purposes. Order pronounced in open court on 26.11.2025. [ANUBHAV SHARMA]

[NAVEEN CHANDRA]
JUDICIAL MEMBER

ACCOUNTANT MEMBER

Dated: 15th DECEMBER, 2025. VL/