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Facts
The assessee's appeal arose from an order that treated cash deposits of Rs. 39,26,500/- during demonetization as unexplained under Section 68 read with Section 115BBE of the Income-tax Act.
Held
The Tribunal admitted the assessee's additional evidence, acknowledging it goes to the root of the matter. The case was remitted back to the Assessing Authority for fresh adjudication.
Key Issues
Whether the cash deposits during demonetization are unexplained. Admissibility of additional evidence and remittal for fresh adjudication.
Sections Cited
143(3), 68, 115BBE
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 2017-18 arises against CIT(A)/ NFAC, Delhi’s order dated 19.10.2023 (DIN & Order No. ITBA/NFAC/S/250/2023-24/1057215328(1), in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused.
Coming to the sole substantive issue between the parties herein, it transpires during the course of hearing that both the learned lower authorities have treated the assessee’s cash deposits of Rs. 39,26,500/- during demonetization as unexplained u/s 68 read with section 115BBE of the Act, in assessment order dated 28.12.2019 as upheld in lower appellate discussion.
3. That being the case, learned counsel has invited tribunal’s attention to the assessee’s additional evidence application seeking to place on record his relevant explanation duly supported by documents that he could not plead and prove all the relevant facts before the lower authorities.
The Revenue could hardly dispute that the assessee’s additional evidence, sought to be admitted herein goes to root of the matter which accordingly deserves to be admitted therefore. It is further deemed appropriate in the larger interest of justice to remit the same back to the learned assessing authority for its afresh adjudication after all factual verification(s) subject to a rider that the assessee herein shall himself plead and prove all the relevant facts at his own risk and responsibility, preferably within three effective opportunities, in consequential proceedings. Ordered accordingly.
Order pronounced in open court on 01.10.2025.