NISHANT ANAND,DELHI V. THE ASSESSING OFFICER, DELHI

ITA 6622/DEL/2025

AI Insights

The case involves an appeal by Ms. Shruti Gupta against the order of the CIT(A)/NFAC, which sustained the addition of Rs. 11,32,102 as unexplained expenditure under section 69C of the Income Tax Act for the Assessment Year 2023-24. The addition was initially made by the Assessing Officer (AO) during the assessment proceedings, where it was proposed that the credit card payments made by the assessee were unexplained. The assessee contended that the credit card was used by friends and relatives for their personal expenses, and they had reimbursed the assessee in cash. The Tribunal, after considering the affidavits and other evidence provided by the assessee, concluded that the sources of the credit card payments were adequately explained and allowed the appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 842356 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2023-2024
• Appeal Filed On: 17-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained expenditure
• Section: 234B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘SMC’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER ITA No.6622/Del/2025 Assessment Year 2023-24 Assessee Ms. Shruti Gupta, Advocate Sh. Neeraj Paswan, Advocate Ms. Shefali Kishore, 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 CIT(A)/NFAC dated 01.09.2025 for the A.Y. 2023-24 in sustaining the addition of Rs.11,32,102/- which addition was made by the AO as unexplained expenditure u/s.69C of the Act. 2. Heard rival submissions and perused the orders of the authorities below. The assessee is an individual filed return of income on 28.07.2023 declaring income of Rs.7,31,740/-. The assessment was completed u/s.143(3) r.w. 144B of the Act. In Nishant Anand 2/91, Roop Nagar, Delhi -110007 PAN No. ANSPA3804F Vs The Assessing Officer Delhi Assessee Respondent Printed from counselvise.com Page | 2 the course of assessment proceedings the AO issued a show cause notice proposing to treat credit card payments of Rs.11,32,000/- as unexplained expenditure u/s.69C r.w.s. 115BBE of the Act. In response to show cause notice the assessee stated that he has made payment of Rs.11,32,102/- in his credit card from Axis Bank and enclosed details of payments made by the assessee in his credit card through bank account and cash payments. The assessee furnished only partial details and submitted that the remaining details will be furnished as soon as the assessee comes back to India as he is out of country and sought an adjournment. However, the AO treated the credit card payments of Rs.11,32,102/- as unexplained expenditure u/s.69C of the Act. On appeal the Ld. CIT(A) sustained the addition by observing as under :- 7.3 During documents and judicial decisions and the During the course of appellate proceedings, the appellant has furnished the written submission along with supporting same is perused by the undersigned. The appellant has argued that the credit card was used for the personal purpose of the relatives and friends and cash is received from friends and relatives and the same is the source for credit card payment. The credit card is nothing but the personal credit facility is given to the appellant by the bank. As per the banking norms, the credit card should not be used for others expenditure which is against the agreement between the appellant and bank for using the credit card. Hence, using the credit card for others purpose is against and violation of the law. For the repayment of credit card, the source is to be established by the appellant whereas the appellant has claimed that the source is from friends and relatives. It is pertinent to mention here that the repayment was done through cash and not through banking channel. The fact is that the appellant has unaccounted cash which is used for payment of credit card and unaccounted cash of the appellant was claimed as cash received from friends and relatives. Further, the appellant has relied upon many judicial decisions and the same is perused. The facts of the appellant's case are different form the facts of the judicial Printed from counselvise.com Page | 3 decisions which are relied upon and those judicial decisions are not applicable in the case of the appellant. In view of the above-mentioned facts and discussions, the appellant could not establish the source for the credit card payment of Rs. 11,32,102/-, therefore, the undersigned could not find any reason to interfere with the addition made in the assessment order. The AO is directed to charge interest u/s 234A, 234B and 234C as per the provisions of the Act. The appellant has raised the objection on the addition of Rs. 11,32,102/- through ground no.1, therefore, ground no. 1 is decided against the appellant. 3. It is the contention of the assessee that the credit card of the assessee was used by friends and relatives and assessee was given cash for paying credit card dues. The Ld. Counsel for the assessee submitted that the cash payments into credit card account are only Rs.9,52,000/- and not Rs.11,32,102/-. The assessee furnished the following table explaining the utilization of the credit card by friends, mother and father as under :- Printed from counselvise.com Page | 4 Printed from counselvise.com Page | 5 4. The Counsel for the assessee also submitted that the friends utilized credit card of the assessee have also filed affidavits confirming that the credit card was used by them and they made payment in cash to the assessee alongwith their PAN numbers and Aadhar card proving their identity. 5. I have perused the evidences furnished by the assessee in the form of affidavits from the friends identifying themselves by furnishing PAN cards and Aadhar Cards, stating that the credit card was used by friends and relatives for their personal expenses and they have returned money in cash to the assessee. All these goes to show that the credit card was used by friends, mother and father of the assessee and friends have given money in cash for credit card payments and in my view the assessee has proved the sources of credit card payments and accordingly the AO is directed to delete the addition u/s.69C of the Act. 6. In the result, the appeal of the assessee is allowed. Printed from counselvise.com Page | 6 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 "