MOHD JAVED, 736, GALI FAZAL PURA, SUIWALAN, DARYAGANJ, NEW DELHI-110002,NEW DELHI V. ITO, WARD 48(1), DELHI, NEW DELHI

ITA 1311/DEL/2025

AI Insights

Mohd Javed appealed against the penalty orders issued by the National Faceless Appeal Centre (NFAC), which were based on allegations that he failed to explain the source of substantial cash deposits in his bank account during the assessment year 2017-18. The Tribunal referenced earlier rulings which had found in favor of the assessee, noting that the cash deposits were part of business turnover and that Javed was a commission agent earning margins as prescribed by the Gujarat Milk Cooperative Federation. These factors led to the conclusion that the penalties imposed were not justified.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827839 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 03-03-2025
• Other Referred Cases: ITA No. 1430/Del/2025, ITA No. 916/Del/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: G.S.KOHLI

Judgement Text

"P a g e | 1 ITA Nos. 1311 & 1312/Del/2025 Mohd Javed (AY: 2017-18) IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA Nos.1311 & 1312/Del/2025 (Assessment Years:2017-18) Mohd Javed, 736, Gali Fazal Pura, Suiwalan, Daryaganj, New Delhi – 110002 Vs. ITO, Ward 48(1) Civic Centre, New Delhi – 110002 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AGPPJ7753C Appellant .. Respondent Appellant by : Sh. G.S. Kohli, CA Respondent by : Sh. Om Prakash, Sr. DR Date of Hearing 11.12.2025 Date of Pronouncement 09.01.2026 O R D E R PER ANUBHAV SHARMA, JM: Both the appeals are preferred by the assessee against the different order dated 29.01.2025 & 13.02.2025 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order Nos: ITBA/NFAC/S/250/2024- Printed from counselvise.com P a g e | 2 ITA Nos. 1311 & 1312/Del/2025 Mohd Javed (AY: 2017-18) 25/1072683493(1)/ ITBA/NFAC/S/250/2024 -25/1073216938(1) arising out of the different penalty order dated 11.06.2021 & 14.06.2021 u/s 272A(1)(d)/271A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the NFAC, Delhi for AY: 2017-18. 2. Heard and perused the records. It was pointed out by ld. Counsel for the assessee that in assessee’s case for present AY: 2017-18 vide ITA No. 1430/Del/2025 order dated 27.05.2025 the quantum appeal of the assessee has been disposed of whereby the cash deposits of the assessee were found to be out of business turnover though a lumpsum addition of Rs.4,50,000/- was made by the Coordinate Bench. 3. Then vide ITA No. 916/Del/2022 of Coordinate Bench order dated 03.03.2023 has quashed the penalty u/s 271B of the Act on the premises that the cash deposit of Rs.4.3 Cr in the bank account and the sale turnover of Rs.4.01 lakhs in ITR revenue led to penalty u/s 271B of the Act, but assessee was found to be a commission agent and earning margins as prescribed by the Gujarat Milk Cooperative Federation making the levy of penalty not sustainable in law. Printed from counselvise.com P a g e | 3 ITA Nos. 1311 & 1312/Del/2025 Mohd Javed (AY: 2017-18) 4. The Penalties were imposed in the background of allegation that the assessee was unable to explain the source of deposits amounting to Rs.43,57,600/- in its bank account. The subsequent decisions in favour of the assessee sufficiently taken into consideration the explanation which has found to be satisfactory for the purpose of Section 69A and that also negates the contention of Assessing Officer. In the light of the aforesaid the ground raised in both the appeals are sustained. Both the appeals are allowed and impugned penalty orders are quashed. Order pronounced in the open court on 09.01.2026 Sd/- (Amitabh Shukla) Sd/- (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 09.01.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "