DEVESH KUMAR JOSHI,DEHRADUN V. DCIT/ACIT CENTRAL CIRCLE, DEHRADUN, DEHRADUN

ITA 263/DDN/2025

AI Insights

The case involves Devesh Kumar Joshi, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) - 3, Noida, which arose from an assessment order pertaining to the Assessment Year 2020-21. The appellant was part of a group subjected to a search and seizure operation under section 132 of the Income Tax Act, 1961. During the search, various incriminating documents and digital evidence were seized, leading to a reassessment under section 148 of the Act. The primary contention was regarding the addition made by the AO for cash receipts amounting to INR 10,25,000, which the appellant claimed were returns of previously entrusted cash for safekeeping. The Tribunal, after examining the seized materials, sided with the appellant, leading to the allowance of the appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 848662 (ITAT-DEHRADUN)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Dehradun
• Assessment Year: 2020-2021
• Appeal Filed On: 16-12-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM SHARMA
• Assessee Lawyers: SUBHAM BANSAL
• Keywords: Search and seizure; Loose papers
• Section: 147; 148; 132

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN “SMC” BENCH: DEHRADUN BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 263/DDN/2025 [Assessment Year : 2020-21] Devesh Kumar Joshi Kotra Santour Nanda Ki Chowki, Prem Nagar, Dehradun, Uttarakhand -248001 PAN-ARSPJ1175G vs DCIT/ACIT Central Circle Dehradun Uttarakhand APPELLANT RESPONDENT Appellant by Shri Subham Bansal, Adv. Respondent by Ms. Poonam Sharma, CIT DR Date of Hearing 12.03.2026 Date of Pronouncement 25.03.2026 ORDER PER BENCH: The present appeal is filed by assessee against the order dated 15.10.2025 passed by Ld. Commissioner of Income Tax (A)-3, Noida [“Ld. CIT(A)”] in Appeal No. CIT(A) Nodia-3/10064/2019-20 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of Assessment order dated 28.03.2025 passed u/s 147 of the Act pertaining to Assessment Year 2020-21. 2. Brief facts of the case are that assessee is an individual, derived income from business and other sources and filed the return of income on 24.06.2024, declaring total income of INR 5,31,170/-. A search and seizure action u/s 132 of the Act was carried out in the group of Shri Jitender Joshi and its related entities. The assessee being one of the Printed from counselvise.com ITA No. 263/DDN/2025 Page | 2 related and connected entity of the said group, was also covered in search and seizure action. During the course of search at the business premises and at the residence of the assessee, various incriminating documents, loose sheets, digital evidences, whatsApp chats etc. were recovered and seized. Thereafter, the case of the assessee was re- opened u/s 148 of the Act on 30.03.2024. During the course of search, documents titled as Annexure A-1 pages 36 to 44 were seized containing the entries that assessee has received cash of INR 10,25,000/- from Shri Devesh Kumar Joshi. Assessee claimed these amounts were received back by him which were previously given to him for safe custody and which is evident from the loose papers itself where both the entries of giving cash of him as well as received back are found noted. 3. Before us, Ld.AR for the assessee submits that AO has made the addition on account of cash received by the assessee which is duly backed by the entry of cash paid on earlier occasions which has not been doubted. Ld. AR submits that once the source of the receipt of the cash is accepted and no addition was made for the entry of cash given by the assessee to Shri Devesh Kumar Joshi, no addition is required to be made. 4. On the other hand, Ld. CIT DR for the Revenue vehemently supported the orders of the lower authorities and submits that the assessee has received the cash which was found recorded in the loose papers seized during the search and therefore, the AO has rightly made the addition on this account. Printed from counselvise.com ITA No. 263/DDN/2025 Page | 3 5. Heard the contention of both parties and perused the material available on record. From the perusal of seized material reproduced in the assessment order as well as placed before us at pages 23 & 24 of Paper Book, we find force in the contention of the assessee that these amounts of INR 5,25,000/- received on 18.11.2019 and of INR 5 Lakhs on 07.02.2020 were earlier given by the assessee. It is further observed that the entries of giving amounts prior to the receipts were also found recorded on the same papers itself. It is further observed that AO has made the addition with respect to the receipt of cash by the assessee on Two occasions whereas the immediate source of the same being cash paid by the assessee to earlier two occasions have not been doubted. Once the source of the said cash as claimed out of the cash given earlier which incidentally fallen within the previous year itself and have not been doubted therefore, receipt back of such sum cannot be held as undisclosed. Accordingly, we delete the addition made with respect to the cash received back by the assessee given to the same persons on earlier occasions which have been accepted and no addition was made by the AO. Therefore, all Grounds of appeal raised by the assessee are allowed. 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 25.03.2026. Sd/- Sd/- (YOGESH KUMAR U.S.) JUDICIAL MEMBER Date- 25.03.2026 *Amit Kumar, Sr.P.S* (MANISH AGARWAL) ACCOUNTANT MEMBER Printed from counselvise.com ITA No. 263/DDN/2025 Page | 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT 6. Guard File ASSISTANT REGISTRAR ITAT, NEW DELHI (Dehradun Circuit Bench, Dehradun) Printed from counselvise.com "