PRIYANKA,DELHI vs. INCOME TAX OFFICER, WARD 68(4), DELHI

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ITA 6633/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 cash deposits were received on the occasion of the individual's marriage. As per the proviso to Section 56(2)(vii) of the Income Tax Act, such sums are exempt from tax. Therefore, the addition made by the lower authorities was incorrect.

What were the facts?

The assessee deposited Rs. 17.07 lakhs in cash during demonetization. The lower authorities treated these deposits as unexplained income. The assessee provided her marriage registration certificate showing her marriage date as 11.11.2016.

What were the issues?

Whether cash deposits made during demonetization, which were received on the occasion of marriage, can be treated as unexplained income and taxed.

Which sections of the Income-tax Act were involved?

Section 56,Section 115BBE,Section 143(3)

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 Ajay Vohra, Sr. Advocate, Shri Deepesh Jain, Advocate, Ms. Aditi Garg, CA
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/250/2025-26/1080095165(1), dated 28.08.2025 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.

2.

Suffice to say, the assessee/appellant herein raises her sole substantive ground challenging both the learned lower authorities’ action treating her cash deposits during the assessment order dated 27.12.2019 as upheld in the lower appellate discussion.

3.

That being the case, the learned senior counsel Shri Ajay Vohra, invites the tribunal’s attention to page-34 in the assessee’s paper book wherein she has placed on record her marriage registration certificate dated 17.10.2018 issued by the Municipal Authority on 17.10.2018. Her date of marriage as per the said calendar is 11.11.2016. This clinching fact has gone unrebutted from the Revenue side. It is in these peculiar facts that the tribunal hereby quotes section 56 (Proviso) (ii) that once legislature has itself exempted assessment of such a sum from the purview of taxability since received ‘on the occasion of the marriage of the individual’, both the learned authorities would not have held the same as unexplained so as to assessable u/s 115BBE of the Act. The impugned addition made in the hands of the assessee stands deleted in very terms therefore.

4.

This assessee’s appeal is partly allowed.

Order pronounced in the open court on 26th November, 2025.

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