SHUBHAM CHEMICALS & SOLVENTS LIMITED,DELHI V. DCIT, CIRCLE 23(1), DELHI, DELHI

ITA 7386/DEL/2025

AI Insights

The case involves Shubham Chemicals & Solvents Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (CIT(A)/NFAC), New Delhi. The appeal was related to the assessment year 2018-19, where the assessee's income was significantly increased due to unexplained cash deposits during the demonetization period. The A.O. had treated these deposits as unexplained money under sections 68/69A of the Income Tax Act and taxed it under section 115BBE. The CIT(A) upheld this decision, leading to the current appeal. The tribunal found that the documents submitted by the assessee were not adequately considered by the lower authorities and thus restored the matter to the A.O. for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841019 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2017-2018
• Appeal Filed On: 17-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANKUSH KALRA
• Assessee Lawyers: JASPAL SINGH SETHI
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 142(1)

Judgement Text

" 1 ITA No. 7386/Del/2025 Shubham Chemicals & Solvents Ltd. Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA No. 7386/Del/2025 ( A.Y 2017-18) Shubham Chemicals & Solvents Limited. GI-3, GT Karnal Road, Azadpur, Delhhi 110033, Delhi PAN: AAFCS2969C (APPLICANT) Vs DCIT Circle-23(1), C. R. Building, Delhi (RESPONDENT) ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 05/07/2025 for the Assessment Year 2018-19. 2. Brief facts of the case as mentioned in the order of the Ld. CIT(A) are as under:- “2. Facts of the Case:- The assessee filed its return of income on 22.02.2018 declaring total income of Rs. 2,39,83,700/-, which was selected for scrutiny and notice under section 143(2) of the Act was issued on 21.08.2018. Thereafter, statutory notices under section 142(1) along with questionnaire were issued on 28.08.2019, 27.09.2019 and 13.11.2019, but the assessee failed to comply with the same. During assessment proceedings, the Assessing Appellant by Sh. Jaspal Singh Sethi, Adv& Ms. Lakshika, Adv Respondent by Ms. AnkushKalra, Sr. DR Date of Hearing 24.02.2026 Date of Pronouncement 26.02.2026 Printed from counselvise.com 2 ITA No. 7386/Del/2025 Shubham Chemicals & Solvents Ltd. Vs. DCIT Officer (AO) noticed cash deposits aggregating to Rs.1,53,11,000/- in various bank accounts during the demonetisation period (08.11.2016 to 30.12.2016). A final show cause notice was issued on 15.12.2019, to which the assessee filed a reply on 19.12.2019 which was not found acceptable. On verification of bank information obtained under section 133(6), the Assessing Officer observed cash deposits of Rs. 1,53,11,000/- in the assessee’s bank accounts, and in the absence of any satisfactory explanation regarding the source of such deposits, treated the same as unexplained money under section 68/69A and brought it to tax under section 115BBE, thereby assessing the total income at Rs. 3,92,94,700/-.” 3. Aggrieved by the assessment order dated 20/12/2019, Assessee preferred an Appeal before the Ld. CIT(A) which has been dismissed on 04/09/2025 vide order impugned. As against the order of the Ld. CIT(A) dated 04/09/2025, the Assessee preferred the present Appeal. 4. The Ld. Counsel for the Assessee submitted that both the order of the A.O. as well as Ld. CIT(A) have not considered the documents produced by the Assessee to substantiate its claim, however, both the authorities have ignored by the various documents produced by the Assessee and made/confirmed the additions, in violation of principals of natural justice. Thus, sought for allowing the Appeal. 5. Per contra, the Ld. Department's Representative submitted that the authorities below have considered the documents and passed t he respective orders in accordance with law which requires no Printed from counselvise.com 3 ITA No. 7386/Del/2025 Shubham Chemicals & Solvents Ltd. Vs. DCIT interference, thus by relying on the orders of the Lower Authorities sought for dismissal of the Appeal. 6. We have heard both the parties and perused the material available on record. It is the specific case of the Assessee that the documents produced by the Assessee have not been considered by the authorities below and made/confirmed the addition by the respective authorities. The Assessee has also filed the Paper Book before us to substantiate its claim. In view of the above, without commenting the merits of the case andin the interest of justice, we deem it fit to restore the issue to the file of the A.O. for de-novo assessment. Needless to say, the A.O. shall provide opportunity of being heard to the Assessee and also taken into consideration all the documents produced by the Assessee while passing the assessment order in accordance with law. The Assessee is also directed to participate in assessment proceedings without fail. 7. In the result, the Appeal of the Appellant is partly allowed for statistical purpose. Order pronounced in the Open Court on this 26th Day of February, 2026 Sd/- Sd/- (AMITABH SHUKLA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26/02/2026 Printed from counselvise.com 4 ITA No. 7386/Del/2025 Shubham Chemicals & Solvents Ltd. Vs. DCIT R. Naheed * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 1. Date of dictation of Tribunal order 25.02.2026 2. Date on which typed draft order is placed before the dictating Member 25.02.2026 3 Date on which typed draft order is placed before the other Member (in the case of DB) 25.02.2026 4. Date on which the approved draft order comes to P.S/Sr.P.S 5. Date on which the fair Order is placed before the dictating Member for sign 6. Date on which the fair Order is placed before the other Member for sign ( in the case of DB) 7. Date on which the Order comes back to P.S./Sr.P.S for uploading on ITAT website 8. Date of uploading, if not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which order goes forPhotostat 11. Date on which order goes for endorsement 12. Date on which the file goes to the Superintendent/O.S. for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to dispatch section for dispatch the Tribunal Order 15. Date of dispatch of order 16. Date on which file goes to Record Room after dispatch the order Printed from counselvise.com "