JAGRAM,MANESAR, GURUGRAM V. ASSESSING OFFICER, GURUGRAM, HARYANA

ITA 8461/DEL/2025

AI Insights

The case revolves around an appeal by Jagram Manesar against the order of the Commissioner of Income Tax (Appeals)/NFAC, which sustained the addition of Rs.37,99,000 as undisclosed income for the Assessment Year 2012-13. The addition was based on cash deposits made into the assessee's bank account. The assessee argued that these deposits were from legitimate sources, specifically compensation received for land acquisition from the Rajasthan Government, and were subsequently withdrawn and deposited between different banks. The Tribunal agreed with the assessee, finding that the source of the deposits was satisfactorily explained and that the CIT(A)'s reasoning for sustaining the addition was misplaced.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838956 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 16-12-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘SMC’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER ITA No.8461/Del/2025 Assessment Year 2012-13 Jagram Manesar, S/o Sh. Prabhu H.No.825, Near Neeraj School, VPO Manesar Gurugram PAN No.ASBPJ0962B Vs. Assessing Officer, Gurugram Haryana Appellant Respondent Appellant Sh. Dikshant Yadav, Advocate Respondent Sh. Manoj Kumar, Sr. DR Date of Hearing 12.01.2026 Date of Pronouncement 17.02.2026 ORDER PER C.N. PRASAD, JM, This appeal is filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals)/NFAC dated 19.05.2025 for A.Y. 2012-13 in sustaining the addition of Rs.37,99,000/- made towards undisclosed income in respect of cash deposits made into bank account. 2. The Ld. Counsel for the assessee at the outset submitted that in course of assessment proceedings the assessee explained that he has received compensation from Rajasthan Government on account of acquisition of agricultural land and Printed from counselvise.com Page | 2 a copy of acquisition order was furnished to the AO. The Ld. Counsel for the assessee submitted that it was explained to the AO that the cash deposits made into the Gurgaon Central Cooperative Bank Ltd are from out of the withdrawals made from Punjab National Bank and Oriental Bank of Commerce. The Ld. Counsel for the assessee referring to the bank passbook of Gurgaon Central and Cooperative Bank and the Punjab National Bank submitted that the assessee on 01.11.2011 has withdrawn Rs.25 lacs from Punjab National Bank and on the very same day the same was deposited into Gurgaon Cooperative Bank Ltd. Similarly, the balance of Rs.12,99,000/- was also out of the withdrawals from the Punjab National Bank and Oriental Bank of Commerce, therefore, the assessee had explained the sources for the cash deposits into the Gurgaon Central Cooperative Bank Ltd. 3. The Counsel for the assessee further referring to the order of the Ld. CIT(A) submitted that the addition was sustained by the Ld. CIT(A) for the reason that the assessee could not explain why this much of cash was withdrawn ignoring the fact that the assessee had obtained compensation from the Rajasthan Government by way of acquisition agricultural land are sources established and the withdrawn from one bank and was later deposit of the same amount into other bank account was explained. Therefore, there cannot be any addition for not explaining the reason for withdrawal from bank account which otherwise the source for deposit was fully explained. Printed from counselvise.com Page | 3 4. Heard rival submissions and perused the orders of the authorities below. I find considerable merit in the submissions of the Ld. Counsel for the assessee. The bank statement reveal that the assessee has withdrawn the amounts from Punjab National bank and Oriental Bank of Commerce and they were deposited into Gurgaon Central Cooperative Bank Ltd. The source of money is the land acquired from Rajasthan Government and the compensation was paid to the assessee. This assessee explained withdrawals and deposits and they cannot be doubted since the very source was explained and the deposits were also explained. The Ld. CIT(A) is misplaced in sustaining the addition for the reason that the assessee could not explain why he withdrew huge cash from the bank and for this reason the Ld. CIT(A) cannot sustained the addition. Thus, the addition of Rs.37,99,000/- made by the AO as undisclosed income is deleted. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 17.02.2026. Sd/- [C.N. PRASAD] JUDICIAL MEMBER Dated: 17.02.2026 NEHA , Sr.P.S.* Printed from counselvise.com Page | 4 Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "