MEENA KUMARI SADH,DELHI vs. ITO WARD-54(1) , NEW DELHI

PER SATBEER SINGH GODARA, J.M:

These assessee’s twin appeals ITA Nos. 4723 & 4724/Del/2025 for A.Y.
2017-18 arise against CIT(A)/NFAC Delhi’s as many DIN & Order Nos.
ITBA/NFAC/S/250/2025-26/1076237982(1) dated
15.05.2025
&
ITBA/NFAC/S/250/2025-26/1078709868(1), dated 21.07.2025 in proceedings u/s 147 and 271AAC1 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’, respectively.

Heard both the parties. Case files perused.
2. The assessee’s quantum appeal ITA 4723/Del/2025 is directed against both the learned lower authorities’ action treating her cash deposit during demonetization of Rs. 11.45 lakhs as unexplained; in assessment order dated
12.05.2023, and upheld in the lower appellate discussion.
3. Faced with this situation, it is noticed from a perusal of the assessee’s bank statement that she, inter alia, had withdrawn amount of Rs. 5 lakh in cash on 10.10.2016; Rs. 3 lakhs on 14.10.2016; Rs. 3,20,000/- on 15.10.2016; Rs. 3.5 lakhs and Rs. 50,000/- on 17.10.2016; Rs. 5 lakhs on 24.10.2016; respectively before demonetization. Necessary inference which would therefore arise is that her impugned cash deposit during demonetization form part of the cash withdrawals which could not have been treated as unexplained in both the lower proceedings.
The impugned addition is deleted therefore. The assessee succeeds in her quantum appeal ITA No. 4723/Del/2025 in very terms.

Same order to follow in assessee’s penalty appeal ITA No. 4724/Del/2025
being consequential in nature.
4. These assessee’s twin appeals ITA Nos. 4723 & 4724/Del/2025 are allowed in very terms. A copy of this common order be placed in the respective case files.
Order pronounced in open court on 28.08.2025. (SATBEER SINGH GODARA)

JUDICIAL MEMBER
Dated: 28.08.2025. *MP*