UMA SHANKAR VERMA,DELHI vs. ITO, WARD-47(1), DELHI, DELHI

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ITA 4764/DEL/2025Status: DisposedITAT Delhi29 September 2025AY 2017-18Bench: SHRI SATBEER SINGH GODARA (Judicial Member)1 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 found merit in the assessee's contentions, noting that the lower authorities treated 45% of cash deposits as unexplained on a percentage basis without examining each entry against turnover. The Tribunal deleted the impugned addition.

What were the facts?

The assessee's appeal for assessment year 2017-18 arises from an order treating cash deposits during demonetization amounting to Rs. 28.80 lakhs as unexplained cash credits.

What were the issues?

Whether cash deposits made during demonetization can be treated as unexplained cash credits on a percentage basis without proper examination of individual entries against turnover.

Which sections of the Income-tax Act were involved?

Section 143(3),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 Neeraj Mangla, CA
For Respondent: Shri Manoj Kumar, Sr. DR
Hearing: 22.09.2025Pronounced: 22.09.2025

O R D E R

PER SATBEER SINGH GODARA, JM:

1.

This assessee’s appeal for assessment year 2017-18 arises against Commissioner of Income Tax (Appeals)/NFAC, Delhi’s order dated 17.07.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1078612823(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. 2. It transpires during the course of hearing that both the learned lower authorities have treated the assessee’s cash deposits during demonetization amounting to Rs. 28.80 lakhs as unexplained cash credits u/s 68 r.w.s. 115BBE of discussion.

3.

It is in this factual background that the assessee’s counsel draws the tribunal’s attention to para 8 at page 11 in the assessment order that the learned assessing authority has treated 45% of the cash deposits amounting to Rs. 64,00,000/- as unexplained than examining each and every entry vis a vis the corresponding turnover. This clinching factual position has gone unrebutted from the Revenue’s side. The tribunal therefore finds merit in the assessee’s vehement contentions and delete the impugned addition of Rs. 28.80 lakhs made on percentage basis herein in very terms. Ordered accordingly.

4.

This assessee’s appeal ITA 4764/Del/2025 is allowed in very terms.

Order pronounced in open court on 22.09.2025.

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