INCOME TAX OFFICER, WARD-1(4), FARIDABAD, FARIDABAD V. TANU GARG, FARIDABAD

ITA 4445/DEL/2024

AI Insights

The case involves an appeal by the Income Tax Officer (ITO), Ward 1(4), Faridabad against Tanu Garg concerning the Assessment Year 2017-18. The appeal was directed against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, which had deleted the addition made under Section 68 of the Income Tax Act, 1961, due to unexplained cash deposits amounting to Rs.2,69,45,377 during the demonetization period. The primary contention was the non-verification of the bank statements that led to the deletion of the addition. The tribunal decided to remit the case back to the Assessing Officer for a thorough verification of the bank statements and to provide the assessee an opportunity to present further evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713145 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MANOJ TIWARI
• Keywords: Opportunity of being heard; Additional evidence
• Section: 143(3); 68

Judgement Text

"P a g e | 1 ITA No.4445/Del/2024 Tanu Garg (ASSESSMENT YEAR:2017-18) THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER & SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA No. 4445/Del/2024 (Assessment Year: 2017-18) ITO, Ward 1(4) Income Tax Office, B- Block, New CGO Complex NIT-IV, Faridabad Haryana – 121001 Vs. Tanu Garg House No. 146, Sector -23 Faridabad Haryana – 121005 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: ADUPT4430G Appellant .. Respondent Appellant by : None Respondent by : Sh. Manoj Tiwari, Sr. DR Date of Hearing 28.07.2025 Date of Pronouncement 30.07.2025 O R D E R PER MADHUMITA ROY, JM: The instant appeal filed by the revenue is directed against the order dated 20.12.2023 passed by the Ld. National Faceless Appeal Centre (NFAC), Delhi, arising out of the Assessment Order dated 05.12.2019 passed by the ITO, Ward-2(4), Faridabad, under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for Assessment Year 2017-18. Printed from counselvise.com P a g e | 2 ITA No.4445/Del/2024 Tanu Garg (ASSESSMENT YEAR:2017-18) 2. None appeared on behalf of the assessee at the time of call. It appears from the record that previously the assessee never appeared whenever the matter was fixed for hearing. Hence, having no other alternative we have proceeded to deal with the matter exparte. 3. The matter relates to addition on account of cash deposit during demonetization to the tune of Rs.2,69,45,377/- under Section 68 of the Act. Rs.2,65,66,377/- was deposited in Canara Bank in Account No. 8802992897 and Rs.3,79,000/- was deposited in Account No. 84292201000260 in HDFC Bank in the name of Lavya Enterprises. The assessee was doing business in the name of Lavya Enterprises gross receipts from the sale of goods whereof was shown at Rs.97,86,975/-; such accounts was duly audited on 30.09.2018. The assessee before the Ld. Assessing Officer did not provide the details of source of such cash deposit and therefore, the same was found to be unexplained and addition thereof was made under Section 69A of the Act. 4. Before the First Appellate Authority the appellant submitted additional evidences being the bank statement of Current Account lying at Canara Bank being Account No. 8429201000260 and savings Account lying with HDFC Bank having Account No. 15661000011701 which were forwarded to the Assessing Officer on 10.08.2023 for verification and to furnish a remand report. As nothing was forthcoming the Ld. CIT(A) deleted the addition made in the hands of the assessee. 5. It is an admitted fact that the bank statements which were relied upon by the appellant before the Ld. CIT(A) were not verified and therefore, deletion of addition in our considered opinion is found to be Printed from counselvise.com P a g e | 3 ITA No.4445/Del/2024 Tanu Garg (ASSESSMENT YEAR:2017-18) not justifiable. Thus, having regard to this particular aspect of the matter, we for the ends of justice find it fit and proper to give a further opportunity to revenue to verify the banks statement relied upon by the assessee as mentioned hereinabove and therefore, this appeal is disposed of by remitting the issue to the file of the Ld. Assessing Officer to verify bank statement relied upon the assessee as above and to pass order accordingly. The Ld. Assessing Officer is further directed to grant a further opportunity of being heard to the assessee and to consider the evidences on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the Ld.AO, the said authority would be at liberty to pass orders strictly in accordance with law. 6. The appeal preferred by the revenue is allowed for statistical purposes. Order pronounced in the open court on 30.07.2025 Sd/- (Amitabh Shukla) Sd/- (Madhumita Roy) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 30.07.2025 Rohit, Sr. PS Printed from counselvise.com P a g e | 4 ITA No.4445/Del/2024 Tanu Garg (ASSESSMENT YEAR:2017-18) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 1. Date of dictation of Tribunal Order Direct typing 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 30.07.2025 3. Date on which the typed draft Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S. /P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement ; 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S. /P.S. on official website 8. Date on which the file goes to the Bench Clerk along with Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. Date on which the file goes for Xerox 12. Date on which the file goes for endorsement 13. Date on which the file goes to the superintendent for checking 14 The date on which the file goes to the Assistant Registrar for signature on the tribunal order 15 Date on which the file goes to dispatch section 16 Date of Dispatch of the Order Printed from counselvise.com "