SANTU SHARMA (HUF) ,DELHI vs. ITO WARD , DELHI

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ITA 6519/DEL/2025Status: DisposedITAT Delhi26 November 2025AY 2017-183 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 held that the piecemeal approach adopted by the lower authorities in making the addition under Section 68 is not sustainable. The authorities should have examined all credit entries in issue.

What were the facts?

The Assessing Officer added Rs. 13.75 lakhs as unexplained cash credit under Section 68 read with Section 115BBE. This addition was based on treating 75% of the assessee's cash deposits of Rs. 53 lakhs as unexplained, while accepting the remaining 25% as genuine.

What were the issues?

Whether a piecemeal approach in assessing unexplained cash credit under Section 68 is legally tenable.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

For Appellant: Shri Salil Agarwal, Sr. Adv, Shri Shailesh Gupta,CA, Shri Uma Shankar, Adv. &, Shri Madur Agarwl, Adv
Hearing: 26.11.2025Pronounced: 26.11.2025

Date of hearing 26.11.2025 Date of pronouncement 26.11.2025 ORDER This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1081062507(1), dated 23.09.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties at length. Case file perused. parties herein, it emerges at the outset that both the lower authorities have added a sum of Rs.13.75 lakhs as assessee’s unexplained cash credit liable to be assessed u/s 68 r.w.s.

115BBE of the Act; in assessment order dated 19.12.2019 and upheld in the lower appellate discussion.

3.

That being the case, the learned senior counsel, Shri Salil Agarwal, invites the tribunal’s attention to para-8 at page-9 of the assessment order wherein the assessing authority has simply treated 75% of the assessee’s cash deposits of Rs.53 lakhs; amounting to Rs.39.75 lakhs as unexplained and accepted the balance 25% component thereof as genuine. This tribunal is of the considered view that such a piece-meal approach adopted by the learned departmental authorities for making addition u/s 68 is not sustainable as they ought to have examined all the credit entries is issue. The impugned addition is deleted for this precise reason therefore.

8.

This assessee’s appeal is allowed.

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