SANTU SHARMA (HUF) ,DELHI V. ITO WARD , DELHI

ITA 6519/DEL/2025

AI Insights

The case involves an appeal by Santu Sharma (HUF) against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which upheld the addition of Rs. 13.75 lakhs as unexplained cash credit in the assessee's account for the assessment year 2017-18. The primary legal contention was regarding the application of section 68 of the Income-tax Act, 1961, which deals with unexplained cash credits. The Tribunal criticized the lower authorities for their piecemeal approach in accepting only a portion of the cash deposits as genuine while rejecting the rest without a thorough examination of all credit entries.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788956 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 15-10-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: SALIL AGARWAL
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.6519/Del/2025 Assessment Year: 2017-18 Santu Sharma (HUF), 98/100, Moti Bazar, Chandni Chowk, Delhi-110006 Vs. Income Tax Officer, Ward-47(4), Drum Shape Building, I.P. Estate, New Delhi-110002 PAN: AAWHS7588F (Appellant) (Respondent) ORDER This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1081062507(1), dated 23.09.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties at length. Case file perused. Assessee by Shri Salil Agarwal, Sr. Adv. Shri Shailesh Gupta,CA, Shri Uma Shankar, Adv. & Shri Madur Agarwl, Adv. Department by Sh. Manoj Kumar, Sr. DR Date of hearing 26.11.2025 Date of pronouncement 26.11.2025 Printed from counselvise.com ITA No.6519/Del/2025 2 | P a g e 2. Coming straight to the sole substantive issue between the parties herein, it emerges at the outset that both the lower authorities have added a sum of Rs.13.75 lakhs as assessee’s unexplained cash credit liable to be assessed u/s 68 r.w.s. 115BBE of the Act; in assessment order dated 19.12.2019 and upheld in the lower appellate discussion. 3. That being the case, the learned senior counsel, Shri Salil Agarwal, invites the tribunal’s attention to para-8 at page-9 of the assessment order wherein the assessing authority has simply treated 75% of the assessee’s cash deposits of Rs.53 lakhs; amounting to Rs.39.75 lakhs as unexplained and accepted the balance 25% component thereof as genuine. This tribunal is of the considered view that such a piece-meal approach adopted by the learned departmental authorities for making addition u/s 68 is not sustainable as they ought to have examined all the credit entries is issue. The impugned addition is deleted for this precise reason therefore. 8. This assessee’s appeal is allowed. Order pronounced in the open court on 26th November, 2025. Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Printed from counselvise.com ITA No.6519/Del/2025 3 | P a g e Dated: 26th November, 2025. f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "