TEJPAL,DELHI V. ITO WARD 2(4), FARIDABAD

ITA 1716/DEL/2024

AI Insights

The case involves an appeal by Tejpal against an ex-parte order of the Commissioner of Income Tax (Appeals) in Kolkata, which confirmed the addition of Rs.5,63,500 as unexplained cash deposits in the assessee's bank accounts during the assessment year 2017-18. The primary contention was regarding the source of cash deposits amounting to Rs.10,07,500 in various bank accounts of the assessee. The assessee argued that these deposits were from earlier withdrawals from his own accounts, which was partly accepted by the Assessing Officer (AO), leading to the disputed addition. The Tribunal, after examining the bank statements and other relevant documents, found the assessee's explanation credible and deleted the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298838 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• 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: ADITYA KAUSHIK
• Keywords: Set aside; Salary income
• Section: 143(3); 69; 69A

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.1716/िदʟी/2024 (िन.व. 2017-18) ITA No.1716/DEL/2024 (A.Y.2017-18) Tejpal, 104, BD Chamber DB Gupta Road, Karol Bagh, New Delhi 110005 PAN: ALNPT-8023-G ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Ward 2(4), C.R Building, Faridabad, Haryana 122001 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Shri Aditya Kaushik, Advocate ŮितवादीȪारा/Respondent by : Shri Sanjay Kumar, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 13/01/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 09/04/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against an ex-parte order of Commissioner of Income Tax (Appeals)/Additional/Joint Commissioner of Income Tax(Appeals)-1, Kolkata (hereinafter referred to as 'the CIT(A)') dated 31.01.2024, for assessment year 2017-18. 2. The solitary issue assailed by assessee in appeal is addition of Rs.5,63,500/- u/s. 69A of the Income Tax Act,1961(hereinafter referred to as ‘the Act’), on account of unexplained cash deposits in the bank account. 2 ITA No.1716/Del/2024 (AY 2017-18) 3. Shri Aditya Kaushik, appearing on behalf of the assessee submits that the assessee is having agricultural income from land admiring 7 acres approximately in village Lalwe District Palwal, Haryana and is also drawing salary from Haryana Govt. The assessee is having saving bank account with HDFC Bank (salary account), State Bank of India, Kisan Credit Card account (KCC) with Sarva Haryana Gramin Bank and one joint account with his wife in Oriental Bank of Commerce (OBC). During the period relevant to assessment year under appeal, the assessee had deposited cash aggregating to Rs.10,07,500/- in various bank accounts. The assessee explained the source of cash deposits i.e. earlier withdrawals from own bank accounts. The AO partly accepted the submissions and made addition of Rs.5,63,500/- as unexplained cash deposits u/s. 69A of the Act. Aggrieved by the addition made in assessment order dated 03.09.2019 passed u/s. 143(3) of the Act, the assessee carried the issue in appeal before the CIT(A). The CIT(A) vide impugned order without examining the documents on record confirmed the addition made by AO. The ld. Counsel referring to the cash flow statement at page no. 45 of the paper book and also bank statements and KCC accounts statement at pages 27 to 44 of paper book, submitted that the assessee had withdrawn Rs.6,55,000/- from his salary account during the period 01.04.2016 to 03.11.2016 and had earlier withdrawn Rs.8,00,000/- from KCC account. The deposits are from said withdrawals. The CIT(A) without even examining the bank statements confirmed addition of Rs.5,67,500/-. 4. Shri Sanjay Kumar, representing the department strongly supported the impugned order and prayed for dismissing appeal of the assessee. The ld. DR submits that since the assessee failed to substantiate his contention with evidences, the AO made addition and the CIT(A) confirmed the same. The ld. DR prayed for upholding the addition and dismissing appeal of the assessee. 3 ITA No.1716/Del/2024 (AY 2017-18) 5. Both sides heard, orders of the authorities below examined. The assessee in appeal has assailed addition of Rs. 5,63,500/- on account cash deposits in bank account during demonetization. The assessee has explained that the source of cash deposits in SBI saving bank account and KCC account is earlier withdrawals from KCC account Rs.8,00,000/- and cash withdrawal of Rs.6,55,000/- between 01.04.2016 to 03.04.2016 from assessee’s salary account. The fact of assessee having KCC account and income from salary has not been disputed by the Revenue. To substantiate the contentions, the assessee has placed on record statement of bank accounts and KCC account. Considering documents on record and submissions of the assessee, the source of cash deposits during the relevant period is plausible. Hence, addition made u/s. 69 of the Act is directed to be deleted. 6. In the result, impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Wednesday the 09th day April, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 09.04.2025 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.1716/Del/2024 (AY 2017-18) BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "