SURESH RAGHUNATH JULKA,DELHI V. DCIT,CIRCLE-70(1), DELHI

ITA 1150/DEL/2024

AI Insights

The case involves Suresh Raghunath Julka, a salaried individual, who appealed against the order of the Commissioner of Income Tax (Appeals) which confirmed the addition of Rs.5,52,600 as unexplained cash credits under section 68 of the Income Tax Act, 1961. The addition was initially made by the Assessing Officer (AO) due to unverified cash deposits in the assessee's credit card account. The Tribunal examined the confirmations from M/s. Krishna Construction and M/s. Stat Elecom Facilities, which indicated that these deposits were reimbursements for business-related expenditures. The Tribunal concluded that the assessee had adequately demonstrated the source of the cash deposits, leading to the reversal of the CIT(A)'s decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312704 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: R.K RAMAN; CHARTERED ACCOUNTANT
• Keywords: Business expenditure; Unexplained cash credit

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.1150/िदʟी/2024 (िन.व. 2017-18) ITA No.1150/DEL/2024 (A.Y.2017-18) Suresh Raghunath Julka 61A/1, 1st Floor, Arjun Nagar, Safdarjung Enclave, Delhi 110029 PAN: ADEPJ-5625-K ...... अपीलाथᱮ/Appellant बनाम Vs. Deputy Commissioner of Income Tax, Circle 70(1), New Delhi ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Shri R.K Raman, Chartered Accountant ŮितवादीȪारा/Respondent by : Shri Sanjay Kumar, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 04/02/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 29/04/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)/Additional/Joint Commissioner of Income Tax(Appeals)-12, Mumbai (hereinafter referred to as 'the CIT(A)') dated 17.01.2024, for assessment year 2017-18. 2. Shri R.K Raman, appearing on behalf of the assessee submits that the solitary issue in appeal is addition of Rs.5,52,600/- u/s. 68 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) as unexplained cash credits confirmed by the CIT(A). Narrating facts of the case, ld. AR of the assessee submits that the 2 ITA No.1150/Del/2024 (AY 2017-18) assessee is a salaried person. During the period relevant to assessment year under appeal the assessee declared total income of Rs.27,79,500/-. The assessee had deposited cash towards credit card payment of Rs.5,54,800/- during the relevant period. The AO without verifying the nature of transaction and source of cash added back the entire payment for credit card. In fact the cash deposits in assessee’s credit card account were made by M/s. Stat Elecom Facilities and M/s. Krishna Construction towards their business expenditure. The payment through credit card was made by assessee towards payment of travel, food and stay for the purpose of business only. The assessee has placed on record confirmations from M/s. Krishna Construction at page no. 7 of the paper book and confirmation from M/s. Stat Elecom Facilities at page no. 8 of the paper book. Both the entities have confirmed that cash deposits were made in City Bank credit card account of Mr. Suresh Ragunath Julka and the said payments were made towards business development activities only. In First Appellate proceedings, the CIT(A) upheld the addition made by AO without appreciating the facts and documents on record. 3. Per contra, Shri Sanjay Kumar representing the department reiterating findings of the CIT(A) prayed for dismissing appeal of the assessee. 4. Both sides heard, orders of the authorities below examined. The short issue in appeal before the Tribunal is with regard to disallowance of cash deposits amounting of Rs.5,44,800/- in credit card account of the assessee. The contention of the assessee is that the cash payments in credit card account were made by M/s. Krishna Construction and M/s. Stat Elecom Facilities. The payments are reimbursement of expenditures incurred by the assessee on behalf of the aforesaid two entities. The said expenditure was purely for business purposes. The assessee 3 ITA No.1150/Del/2024 (AY 2017-18) has also placed on record confirmation from M/s. Krishna Construction and M/s. Stat Elecom Facilities. The said confirmations are at page no. 7 and 8 of the paper book. 5. After having examined the documents on record, I am of considered view that the assesee has been able to corroborate source of cash deposits in his credit card account. Hence, no addition on this account is called for. Ergo, addition of Rs.5,44,800/- is directed to be deleted. 6. In the result, findings of the CIT(A) on this issue are reversed and appeal of the assessee is allowed. Order pronounced in the open court on Tuesday the 29th day of April, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 29.04.2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. 4 ITA No.1150/Del/2024 (AY 2017-18) BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "