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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.
Held
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.
Key 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.
Sections Cited
143(3), 68, 115BBE
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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 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.
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.
This assessee’s appeal ITA 4764/Del/2025 is allowed in very terms.
Order pronounced in open court on 22.09.2025.