NAND KISHOR GARG,GHAZIABAD vs. ACIT, CENTRAL CIRCLE-2, DELHI

This assessee’s appeal for Assessment Year 2022-23, arises against the CIT(A)/NFAC,
Delhi’s
DIN
&
order
No.
ITBA/APL/S/250/2025-26/1077346685(1) dated
23.06.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
2. Heard both the parties at length. Case file perused.
3. This tribunal notices at the outset that both the lower authorities have treated the assessee’s cash found/ seized of Rs. 18 lacs,

2
5092/Del/2025

Nand Kishor Garg confiscated at the airport, as unexplained to the extent of Rs. 9 lacs u/s. 69A, in assessment order dated 29.03.2024, as upheld in the lower appellate discussion.
4. That being the case, a perusal of the case indicates with the able assistance from both the parties that the assessee is a partner in M/s.
Nikunj Developers. And that there have been cash withdrawals in the firm’s sides from 29.06.2021 onwards as per his explanation rendered in lower appellate discussion at page -4 para 7.1 thereof. The Revenue could hardly dispute that the same has nowhere rejected on merits but on conjectures and surmises only. I, therefore, find merit in assessee’s case attributing sources of cash of Rs. 9 lacs to his firm’s withdrawals to delete the impugned addition in very terms.
5. This assessee’s appeal is allowed.
Order Pronounced in the Open Court on 24/09/2025. (Satbeer Singh Godara)

Judicial Member

Dated: 13/10/2025
*NEHA, Sr. PS*