MOHINI CHITKARA,GURGAON V. INCOME TAX OFFICER, WARD-2, HISAR, HISAR

ITA 7481/DEL/2025

AI Insights

The case revolves around the appeal by Mohini Chitkara against the order of the Additional/Joint Commissioner of Income-Tax (Appeals), which added Rs. 11,00,000 to her income for the Assessment Year 2017-18. This amount was part of cash deposits made during the demonetization period, which the Income Tax Department questioned. The assessee, an 80-year-old lady, explained that the cash was part of the consideration received from the sale of a plot of land, which was kept in a bank locker due to ongoing litigation over the property. The Tribunal found the explanation plausible considering the circumstances, including the age of the assessee and the pending litigation, and thus allowed the appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 843829 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 14-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KESHAV KISHORE ANAND
• Assessee Lawyers: S PREM RAJPAL; PULAK RAJPAL; ADVOCATES
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अधिकरण धिल्ली पीठ “एस एम सी”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.7481/धिल्ली/2025 (नि.व. 2017-18) ITA No. 7481/DEL/2025 (A.Y.2017-18) Mohini Chitkara, B-431, Ground Floor, Sushant Lok-1, DLF-QE, S.O Gurgaon, Haryana 122002 PAN: AAVPC-6307-K ...... अपीलार्थी/Appellant बिाम Vs. Income Tax Officer, Ward-2, Aayakar Bhawan, Sector-14, Hisar, Haryana 125001 ..... प्रनिवादी/Respondent अपीलार्थी द्वारा/Appellant by : S/Shri Prem Rajpal & Pulak Rajpal, Advocates प्रधििािीद्वारा/Respondent by : Shri Keshav Kishore Anand, Sr. DR सुिवाई की निथर्थ/ Date of hearing : 18/12/2025 घोषणा की निथर्थ/ Date of pronouncement : 16/03/2026 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Additional/Joint Commissioner of Income-Tax (Appeals), Thiruvananthapuram (hereinafter referred to as ‘the CIT (A)’) dated 16.09.2025, for the Assessment Year 2017-18. 2. The solitary issue assailed by the assessee in appeal is addition of Rs.11,00,000/ u/s.69A r.w.s. 115BBE of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’) in respect of cash deposit during demonetization. 3. Shri Prem Rajpal, appearing on behalf of the assessee submits that the assessee is an old lady of 80 years of age. The assessee had entered into an agreement for sale of plot of land bearing No.4272-P, Sector 23-23A, Urban Estate, Gurgaon measuring 236.50 sq. Mtrs (282.854 sq. yards) on 29.03.2010 for a Printed from counselvise.com 2 ITA No.7481/Del/2025 (AY 2017-18) consideration of Rs.1,07,00,000/-. The assessee received part of consideration as advance Rs.62,00,000/-. Out of which Rs.12,00,000/- was received in cash and Rs.50,00,000/- by way of cheque. Thereafter, the transaction could not be materialized and the dispute went to the Civil Court. The assessee kept the said cash received in the locker, to return the said amount in case the need arises consequent to the decision of Court. To substantiate that the property was subject to litigation, the Counsel placed on record a copy of judgment dated 24.08.2016 in Civil Suit for possession by way of Specific Performance filed by one Rajinder Yadav against the assessee in the Court of Civil Judge (Junior Division), Gurgaon. The ld. Counsel submitted that the said suit was decreed in favour of the plaintiff. The assessee received balance amount of consideration Rs.48,77,700/- by way of cheque on 11.10.2017. From cash component kept by the assessee in locker Rs.11,00,000/- was later deposited by the assessee in bank in November, 2016. He further submitted that except interest income, the assessee has no other source of income. The ld. Counsel submits that these facts were brought to the notice of Assessing Officer (AO), as well as the CIT(A). However, both the authorities below rejected the source of cash deposits explained by the assessee. 4. Per contra, Shri Keshav Kishore Anand representing the department vehemently supported the impugned order and prayed for dismissing appeal of the assessee. 5. Both sides heard, orders of the authorities below examined. The AO has made addition of Rs.11,00,000/- i.e. the cash deposited in the bank account of the assessee during demonetization. The assessee has explained source of cash deposits as part of consideration received from sale of plot of land. The assessee has explained that the agreement for sale of land was executed in March, 2010, Printed from counselvise.com 3 ITA No.7481/Del/2025 (AY 2017-18) but, due to litigation the transaction could not be finalized. It is only after the decree of Court dated 24.08.2016 that the transaction of sale was finalized. The assessee was keeping cash component of the consideration in the bank locker in anticipation that in case the Court directs the assessee may have to return the cash amount received in 2010. Considering totality of circumstances, age of the assessee, pendency of litigation qua the plot of land for which agreement was entered by the assessee, etc. the source of cash deposit in the bank explained by the assessee seems to be plausible. Accordingly, the addition of Rs.11,00,000/- u/s.69A of the Act is directed to be deleted. 6. In the result, impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Monday the 16th day of March, 2026. Sd/- Sd/- (VIKAS AWASTHY) न्यानयक सदस्य/JUDICIAL MEMBER धिल्ली/Delhi, ददिांक/Dated 16/03/2026 NV/- प्रतिलिपि अग्रेपििCopy of the Order forwarded to : 1. अपीलार्थी/The Appellant , 2. प्रनिवादी/ The Respondent. 3. The PCIT/CIT(A) 4. ववभागीय प्रनिनिथि, आय.अपी.अथि., दिल्ली /DR, ITAT, धिल्ली 5. गार्ड फाइल/Guard file. Printed from counselvise.com 4 ITA No.7481/Del/2025 (AY 2017-18) BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "