ANSUL AGGARWAL & CO.,NEW DELHI V. INCOME TAX OFFICER, NEW DELHI

ITA 4483/DEL/2025

AI Insights

The case involves Ansul Aggarwal & Co., a firm that filed its return for the assessment year 2017-18 declaring a total income of Rs. 7,07,720. During the demonetization period, the firm made cash deposits totaling Rs. 29,00,000, which prompted scrutiny under section 143(2) of the Income Tax Act, 1961. The Assessing Officer (AO) issued notices and required substantiation of the sources of these deposits, which the assessee failed to satisfactorily provide. Consequently, the AO made an assessment rejecting the claims of the assessee regarding the sources of the cash deposits. The matter was subsequently appealed to the CIT(A), which upheld the AO's decision. The ITAT, however, found that the assessee was not given a fair opportunity to present its case and directed a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781224 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 20-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KUMAR PANDEY
• Assessee Lawyers: RAHUL AGRAWAL
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences
• Section: 143(3); 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH “SMC’’ : NEW DELHI) BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT ITA No. 4483/Del/2025 Asstt. Year : 2017-18 Ansul Aggarwal & Co. vs. DCIT, Ward 61(1), A-296, Basement, New Delhi Shivalik, Malviya Nagar, New Delhi – 110 017 (PAN:-AAHFA0718Q) (Appellant) (Respondent) Appellant by: Shri Rahul Agrawal, Adv. Respondent by: Shri Ashok Kumar Pandey, Sr. DR. Date of Hearing 13.10.2025 Date of Pronouncement 22.10.2025 ORDER This appeal by the assessee is emanating from the order of the NFAC, Delhi in Appeal No. ITBA/NFAC/S/250/2025-26/1076409202(1) dated 23.05.2025. Assessment was framed by the ITO, Ward 61(1), Delhi u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) for the assessment year 2017-18 vide its order dated 12.12.2019. 2. Brief facts of the case are that the assessee is a firm and filed its return for AY 2017-18 declaring total income of Rs. 7,07,720/-. During the year under consideration, the assessee made cash deposits of Rs. 29,00,000/- into bank account during demonetization period. Accordingly, a notice u/s. 143(2) of the Act dated 16.08.2018 was issued along with various other notices, viz., notice u/s. 142(1) and show cause notice. The assessee failed to give a satisfactory reply to the AO. The assessee also failed to give a satisfactory reply to the AO. The assessee also failed to substantiate sources of cash deposits by furnishing cogent evidences. Hence, the Printed from counselvise.com 3 | P a g e deposits by furnishing corroborative documents before the AO and the claim of the assessee in respect of opening balance of Rs. 14,67,000/- and professional receipt of Rs. 14,33,000/- in cash was without any evidences and sufficient cause. In view of the facts and circumstances of the case, it is crystal clear that during the assessment proceedings, the assessee was unable to substantiate its claim and did not provide the supporting evidences thereof before the AO. Hence, I set aside the orders of the Assessing Officer as well of CIT(A) and direct the Assessing Officer to consider the requisite evidences are required in order to decide the issue afresh, after giving adequate opportunity of being heard to the assessee. I remand the matter back to the file of the AO. I hold and direct accordingly. 4. The instant appeal of the assessee is allowed for statistical purposes. Order pronounced on 22.10.2025. Sd/- (MAHAVIR SINGH) VICE PRESIDENT SRBhatnagar Date: 22-10-2025 Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT TRUE COPY By Order, Assistant Registrar, ITAT, Delhi Bench Printed from counselvise.com "