DCIT, CIRCLE-7(1), NEW DELHI V. DELUX COLD STORAGE AND FOD PROCESSORS, NEW DELHI

ITA 1219/DEL/2022

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A) which pertained to the assessment year 2017-18. The Assessing Officer had made a substantial addition of Rs. 129,79,18,056 under section 69A, citing unexplained cash deposits during the demonetization period. The CIT(A) reduced this addition by Rs. 9,21,00,000 after considering the cash balances of the assessee in the preceding years. The Revenue challenged this partial relief, arguing that the CIT(A) erred in not considering the absence of crucial financial documents from the assessee. The Tribunal, after reviewing the submissions and the material on record, upheld the CIT(A)'s decision, finding no merit in the Revenue's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 22950 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: The Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Section: 69A

Judgement Text

" 1 ITA No. 1219/Del/2022 DCIT Vs. Delux Cold Storage & Food Processors IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No. 1219/Del/2022 (A.Y. 2017-18) DCIT Circle-7(1) Room No. 404, C. R. Building, I. P. Estate, New Delhi Vs Delux Cold Storage and Food Processors 2624, Naya Bazar, Delhi PAN: AAACD0905C Appellant Respondent Assessee by None Revenue by Sh. Rajesh Kumar Dhanesta, Sr.DR Date of Hearing 23/01/2025 Date of Pronouncement 29/01/2025 ORDER PER YOGESH KUMAR, U.S. JM: This present appeal is filed by the Revenue against the order of the CIT(A)/National Faceless Appeal Centre [(‘NFAC’) for short] Delhi, dated 18/03/2022 for the Assessment Year 2017-18. 2. The Grounds of Appeal are as under: - “1. On the Facts & Under the circumstance of the case, the Ld. CIT(A), has erred in deleting the addition made at Rs 9,21,00,000/- by the AO u/s 69A of The Income Tax Act, 1961. 2 ITA No. 1219/Del/2022 DCIT Vs. Delux Cold Storage & Food Processors 2 On the Facts & Under the circumstance of the case, the Ld. CIT(A), has erred in accepting the trend of case available for deposit in bank account for last three years, without consideration that the assessee has not uploaded cash book/bank book as well as copy of sales register during the assessment as well as appellate proceedings and cash in hand just before the demonetization period was exceptionally higher than the trend. The appellant craves leave for reserving the right to amend, modify, alter add or forego any grounds of appeal at any time before or during the hearing of this appeal.” 3. None appeared for the Assessee, even after issuing several notices by the registry, thus, we are of the opinion that the Assessee is not interested in participating in the present proceedings. Therefore, we deem it fit to decide the Appeal on hearing the Ld. Departmental Representative and on verifying the material available on record. 4. Brief facts of the case are that, an assessment order passed u/s 144 of the Act came to be passed by making additions of Rs. 129,79,18,056/- u/s 69Aof the Act. As against the assessment order dated 29/12/2019, the Assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 18/03/2022, deleted the addition of Rs. 9,21,00,000/- and sustained the balance additions. Aggrieved by the order of the Ld. CIT(A) in deleting the partial addition, the Department of Revenue preferred the present Appeal. 3 ITA No. 1219/Del/2022 DCIT Vs. Delux Cold Storage & Food Processors 5. The Ld. Departmental Representative vehemently submitted that the Ld. CIT(A) committed error in deleting the addition of Rs. 9,21,00,000/- made by the A.O. u/s 69A of the Act, without considering the fact that the Assessee has not uploaded cash book/bank book as well as copy of sales register during the assessment as well as appellate proceedings and cash in hand just before the demonetization period was exceptionally higher than the trend. Thus, the Ld. Departmental Representative sought for allowing the Appeal. 6. We have heard the Ld. Departmental Representative and perused the material available on record. The A.O. made an addition of Rs. 129,79,18,056/-, which being cash deposit during the period of demonetization. The Ld. CIT(A) while deleting the partial addition of Rs. 9,21,00,000/-,considered the cash balance during previous two financial years and found that there is a cash balance of Rs. 9.21 Crores as on 08/11/2016, which has been considered for the purpose of arriving at the cash deposited during the demonization. The Ld. CIT(A) found that the Assessee was having sufficient cash of Rs. 9.21 Crore to deposit in the bank account and confirmed the remaining addition made by the Assessee's Representative. Considering the above facts and circumstances and in the absence of any contrary material to disprove 4 ITA No. 1219/Del/2022 DCIT Vs. Delux Cold Storage & Food Processors the claim of the Assessee’s cash book and claim regarding the cash balance, we find no error or infirmity in the order of the Ld. CIT(A).Finding no merits in the Grounds of Appeal of the Revenue, we dismiss the Appeal of the Revenue. Order pronounced in the open court on 29th January, 2025 Sd/- Sd/- (AVDHESH KUMAR MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 29.01.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "