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Facts
The Assessee filed an appeal against the order of the Ld. CIT(A) which confirmed an addition of Rs. 17,30,000/- made by the A.O. on account of cash deposit. The addition was sustained because the Assessee had not produced bank statements to prove the cash was a re-deposit from withdrawals.
Held
The Tribunal noted that the Assessee had now produced the bank statement supporting the claim. Consequently, the Tribunal set aside the impugned order and remanded the issue back to the A.O. for fresh adjudication after considering the bank statement.
Key Issues
Whether the addition made on account of cash deposit is sustainable without considering the bank statement produced subsequently by the Assessee before the Tribunal.
Sections Cited
144, 147
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Income Tax Appellate Tribunal, DELHI
ORDER
PER YOGESH KUMAR, U.S. JM:
The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 17/03/2025 for the Assessment Year 2012-13.
An assessment order came to be passed on 16/12/2019 u/s 144/147 of the Income Tax Act, 1961 ('Act' for short) by making certain additions. The Assessee preferred an Appeal before the Ld.
1. CIT(A). The Ld. CIT(A) vide order dated 17/03/2025 partly allowed the partial addition wherein confirmed the addition of Rs. 17,30,000/- made by the A.O. on account of cash deposit. The Ld. CIT(A) confirmed the said addition vide order dated 17/03/2025 on the ground that the Assessee has not produced the bank statement in support of the claim of the Assessee that the Assessee has re- deposited the said cash of Rs. 17,30,000/- out of the cash withdrawals from the bank. As against the order of the Ld. CIT(A) dated 17/03/2025, the Assessee preferred the present Appeal.
The Ld. Counsel for the Assessee submitted that the Assessee could not file the bank statement before the Lower Authorities in order to prove the fact that Assessee has re-deposited the said cash of Rs. 17,30,000/- out of the cash withdrawals from the bank. However, now the Assessee has produced the bank statement in support of his claim, therefore, sought for deletion of the additions sustained by the Assessee.
Per contra, the Ld. Department's Representative submitted that the since the Assessee has not produced cogent documents in support of his claim, the Ld. CIT(A) has rightly sustained the addition which requires no interference in the hands of the Tribunal.
We have heard both the parties and perused the material available on record. The only reason for sustaining the addition by the Assessee that the Assessee has not produced the bank statement in support of Assessee’s claim that the Assessee has re-deposited the said cash of Rs. 17,30,000/- out of the cash withdrawals from the bank. Now, the Assessee has produced the bank statement before us in support of Assessee’s claim. Since, the said statement of bank account was not produced before the Lower Authorities,we direct the Assessee to produce the same before the A.O. and A.O. is hereby directed to consider the bank statement and adjudicate the claim of the Assessee that the said cash deposit of Rs. 17,30,000/- is out of the cash withdrawals from the Assessee’s bank account. Accordingly, we set aside the order impugned and remand the issue to the file of the A.O. to adjudicate the above issue afresh within a period of six months from the date of service of this order. Needless to say, the A.O. shall provide opportunity of being heard to the Assessee before passing the assessment order in accordance with law. The Assessee is also directed to participate in assessment proceedings without fail.
In the result, the Appeal of the Appellant is partly allowed for statistical purpose.
Order pronounced in the open court on 19th September, 2025