DAIRY INDIA PRIVATE LIMITED,DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX - CIRCLE - 7(1), DELHI

ITA 1987/DEL/2024Status: DisposedITAT Delhi24 September 2025AY 2017-18Bench: SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRIS.RIFAUR RAHMAN (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer and the CIT(A) erred in making the addition without properly verifying the assessee's books of account and considering the cash sales and opening cash balance. The Tribunal found that the cash sales and deposits were integral to the business, and the addition under Section 68 was not justified, especially considering the nature of the dairy business.

What were the facts?

The assessee, engaged in the dairy business, filed its return of income. During demonetization, it deposited a significant amount of cash. The Assessing Officer made an addition on account of alleged unexplained cash deposits, treating them as undisclosed income under Section 68.

What were the issues?

Whether the addition made under Section 68 on account of unexplained cash deposits during demonetization, despite the assessee being in a cash-intensive business with substantial cash sales, is justified. Whether the lower authorities properly considered the assessee's submissions and documentary evidence.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 142(1),Section 68,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI

For Appellant: Shri Bhupinderjit Kumar, Advocate, Ms. Raina Majumdar, Advocate
For Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR
Hearing: 01.07.2025

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1.

The assessee has filed appeal against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short] dated 27.02.2024 for the Assessment Year 2017-18. 2. Brief facts of the case are, the assessee filed its return of income declaring an income of Rs.1,39,10,450/- on 07.11.2017. The case was selected for scrutiny through CASS. The statutory notices under section 143(2) and 2 142 (1) of the Income-tax Act, 1961 (for short ‘the Act’) were issued and served on the assessee through ITBA portal. The Assessing Officer observed that assessee is engaged in the business of manufacturing and proce

The order continues below.

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