ANSUL AGGARWAL & CO.,NEW DELHI vs. INCOME TAX OFFICER, NEW DELHI

Brief facts of the case are that the assessee is a firm and filed its return for AY 2017-18 declaring total income of Rs. 7,07,720/-. During the year under consideration, the assessee made cash deposits of Rs. 29,00,000/- into bank account during demonetization period. Accordingly, a notice u/s. 143(2) of the Act dated 16.08.2018 was issued along with various other notices, viz., notice u/s. 142(1) and show cause notice. The assessee failed to give a satisfactory reply to the AO. The assessee also failed to give a satisfactory reply to the AO. The assessee also failed to substantiate sources of cash deposits by furnishing cogent evidences. Hence, the deposits by furnishing corroborative documents before the AO and the claim of the assessee in respect of opening balance of Rs. 14,67,000/- and professional receipt of Rs. 14,33,000/- in cash was without any evidences and sufficient cause. In view of the facts and circumstances of the case, it is crystal clear that during the assessment proceedings, the assessee was unable to substantiate its claim and did not provide the supporting evidences thereof before the AO. Hence, I set aside the orders of the Assessing Officer as well of CIT(A) and direct the Assessing Officer to consider the requisite evidences are required in order to decide the issue afresh, after giving adequate opportunity of being heard to the assessee. I remand the matter back to the file of the AO. I hold and direct accordingly. The instant appeal of the assessee is allowed for statistical purposes.

Order pronounced on 22.10.2025.