NISHA JAIN,DELHI V. INCOME TAX OFFICER, DELHI

ITA 7578/DEL/2025

AI Insights

The case involves an appeal by Nisha Jain against the order of the CIT(A)/NFAC, Delhi, which sustained the addition of Rs. 25 lakhs made under section 69A of the Income Tax Act for the Assessment Year 2022-23. The addition was initially made by the AO, who considered the cash deposits of Rs. 10 lakhs and Rs. 15 lakhs made by the assessee into her bank account on consecutive days as unexplained money. The assessee contended that these deposits were from her past savings and the maturity of FDRs of her late husband and herself. The Tribunal, after examining the bank statements and the explanations provided, concluded that the assessee had adequately explained the sources of the deposits and thus allowed her appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 842358 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2022-2023
• Appeal Filed On: 21-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘SMC’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER ITA No.7578/Del/2025 Assessment Year 2022-23 Nisha Jain B-5, 3rd Floor, East of Kailash, New Delhi PAN No.ADSPJ4367N Vs. ITO Delhi Appellant Respondent Appellant Sh. U. S. Aggarwal, Advocate Sh. Vaibhav Aggarwal, Advocate Respondent Sh. Manoj Kumar, Sr. DR Date of Hearing 13.01.2026 Date of Pronouncement 27.02.2026 ORDER PER C.N. PRASAD, JM, This appeal is filed by the assessee against the order of the Ld. CIT(A)/NFAC, Delhi for the A.Y.2022-23 in sustaining the addition of Rs.25 lacs made u/s.69A of the Act. 2. Heard rival submissions and perused the orders of the authorities below. The assessee deriving income from house property and interest income filed return of income declaring income of Rs.11,07,850/-. The assessment of the assessee was taken up for scrutiny under CASS to examine “claim of large exempt income (non-business ITR)”. In the course of Printed from counselvise.com Page | 2 assessment proceedings the assessee was required to explain the cash deposits made into bank account and the assessee filed her explanation stating that the deposits were made from out of past savings on maturity of FDRs of her late husband and of herself. It was also explained that her husband expired in the month of April, 2021 after leaving some cash in house and after his death she deposited the cash of her late husband which was made from his past savings, into her bank account to avoid the risk. However, the AO treated the cash deposits of Rs. 10 lacs and 15 lacs made by the assessee into her bank account on 28.10.2021 and 29.10.2021 respectively as unexplained money u/s.69A of the Act. On appeal the Ld. CIT(A) sustained the addition. 3. The Ld. Counsel for the assessee made the following submissions :- 1. The appellant filed her Return of Income declaring an Income of Rs. 11,07,850/- for the assessment year 2022-23. 2. The source of Income of the appellant is from Rental Income & Income from Interest. 3. The appellant has been assessed on an Income of Rs. 36,07,850/- vide order u/s 144B of the Income Tax Act vide order dated 28-02-2024. 4. That an addition of Rs. 25,00,000/- has been made to the Income of the appellant on account of cash deposit in the Bank account & found as unexplained money u/s 69A of the Income Tax Act. Printed from counselvise.com Page | 3 5. The appellant during the year under appeal had deposited a sum of Rs. 25,00,000/- on 28- 10-2021 & on 29-10-2021 as under:- (i) Rs.10,00,000/- On 28-10-2021 (ii) Rs.15,00,000/- On 29.10.2021. 6. The appellant at the time of assessment proceedings had submitted that the amount was deposited in the Bank account are from my past savings & on maturity of some FDRs of my husband late Shri Bhupinder Singh Jain & of self in the past. The husband of the appellant had expired in April, 2021. Some cash was lying at home after the death of Sh. Bhupinder Singh Jain out of his withdrawals from Bank & past savings. As after the death of my husband I live alone in the house, so to avoid risk, the appellant had deposited the amount in the Bank, so that money remains safe. 7. It is further submitted that during the year under appeal the appellant & her husband have withdrawn a sum of Rs 9,00,000/-from Banks with S.B.I. & Indian Bank from the 1\" day of April 2021 to 25th day of October 2021 i.e. upto the date of deposit of Rs 25,00,000/- Copies of Bank Statements & withdrawals are attached for your ready reference. 8. The appellant further submits that there are two withdrawals of Rs 8,50,000/- in the Bank account with Indian Bank of the appellant as under:- (i) Rs. 4,50,00,000/- On 09.07.2021 (ii) Rs 4,00,000/- On 16.07.2021 Rs 8,50,000/- The appellant had with her the said amount of Rs 8,50,000/- which later on deposited in the Bank account on 28-10-2021 & 29-10-2021. Thus the appellant submits that she had cash balance with her out of previous withdrawals & savings of self and her husband Sh. Bhupinder Singh Jain. Printed from counselvise.com Page | 4 9. The appellant submits that as mentioned above she had complete source of deposit of Rs 25,00,000/-in the bank. 10. In view of the submissions made above, the appellant again requests Your Honor to kindly delete the addition of Rs. 25,00,000/- made to the income u/s 69A of the Income Tax Act. 4. I find some merit in the submissions of the Ld. Counsel for the assessee that the assessee had explained her sources for deposits made into her bank account. On perusal of the bank statement of the assessee reveals that on 01.07.2021 the bank has credited Rs.6,25,000/- which is the maturity of FDR proceeds and therefore, the contention of the assessee that the assessee had enough sources for making deposit from withdrawals of bank account and past savings cannot be brushed aside. The contention of the assessee that she had withdrawn Rs.4,50,000/- and 4,00,000/- on 09.07.2021 and 16.07.2021 was duly corroborated with the bank statements. The assessee is earning monthly rental income of Rs.26,000/- and there are sufficient withdrawals from the bank accounts and the ATMs and therefore, in my view the assessee had explained the sources for the deposits made into her bank account. Accordingly, the AO is directed to delete the addition made u/s.69A of the Act. 5. In the result, the appeal of the assessee is allowed. Printed from counselvise.com Page | 5 Order pronounced in the open court on 27.02.2026. Sd/- [C.N. PRASAD] JUDICIAL MEMBER Dated: 27.02.2026 NEHA , Sr.P.S.* Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "