VIKRAM SINGH,FARIDABAD V. ITO WARD-2(5), FARIDABAD

ITA 3659/DEL/2025

AI Insights

The case involves Vikram Singh, a small agriculturist, who was assessed for unexplained cash credits amounting to Rs. 16,64,000 in his savings account for the financial year 2011-12. The Assessing Officer added this amount to the assessee's income for the assessment year 2012-13, which was sustained by the CIT(A). However, the Tribunal, after considering the submissions and the records, decided in favor of the assessee, highlighting that the withdrawals made for agricultural purposes and the timing of these transactions were not adequately considered by the lower authorities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714462 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANGEET BANSAL
• Keywords: Unexplained cash credit
• Section: 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH “SMC’’ : NEW DELHI) BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT ITA No. 3659/Del/2025 Asstt. Year : 2012-13 Vikram Singh, vs. Income Tax Officer, E-296, Dabua Colony Shanti Ward 2(5), New CGO Vidhya Niketan School, Complex, NH-IV, NIT NIT Faridabad Faridabad, Haryana (PAN: ASFPB1501J) (Appellant) (Respondent) Appellant by : None Respondent by : Shri Sangeet Bansal, Sr. DR. Date of Hearing 04.08.2025 Date of Pronouncement 04.08.2025 ORDER This appeal has been filed by the Assessee against the order dated 08.04.2025 passed by the Addl/JCIT(A)-2, Mumbai for the assessment year 2012-13. 2. Brief facts of the case are that the assessee’s case was opened u/s. 148 on account of cash deposits made in his saving bank account amounting to Rs. 16,64,000/- during the FY 2011-12. The assessee filed its income tax return for the assessment year 2012-13 in response to notice u/s. 148 declaring income of Rs.177200/- as rental income and against which the Assessing Officer made an addition of Rs. 16,64,000/- on account of unexplained cash credits in the saving account. However, in appeal, Ld. First Appellate Authority dismissed the appeal of the assessee. Against the above, assessee appealed before the Tribunal. Printed from counselvise.com 2 | P a g e 3. None appeared on behalf of the assessee, despite issue of notice for hearing. Hence, I am proceeding the appeal exparte qua the assessee, after hearing the ld. DR and perusing the records. 4. Ld. DR relied upon the orders of the authorities below. 5. Upon hearing the Ld. DR and perusing the records, it is noted that the assessee made the submissions before the lower authorities that the assessee is a small agriculturist having land in Village Moradabad Faridabad in the name of his mother and having family’s main source of income being income from agriculture. It was the further contention that as per the bank account, the detail of cash deposit was as under:- Date Amount Deposited (In Rs.) 03.10.2011 2,50,000/- 29.10.2011 8,00,000/- 09.11.2011 6,00,000/- 21.02.2012 3,000/- 02.03.2012 11,000/- 5.1 However, the assessee made consistent following withdrawals from the bank account in the month of August and October for the purpose of using the same for agriculture purpose, which were again re-deposited in the month of October and November when the Kharif crop was ready and sold in the market. Date Amount Withdrawn (In Rs.) 11.08.2011 4,00,000/- 24.08.2011 10,00,000/- 25.08.2011 5,00,000/- 31.10.2011 7,50,000/- 5.2 In view of the aforesaid contentions, in my considered view the deposits made in the bank account should not be made the only criteria for making an addition of the whole cash deposited without considering the cash withdrawals which were made exactly in the earlier months of the same year, hence, the addition Printed from counselvise.com 3 | P a g e of Rs. 16,64,000/- made by the AO and sustained by the Ld. CIT(A) is not sustainable in the eyes of law and thus deserve to be deleted. I hold and direct accordingly. 6. In the result, the instant assesseee’s appeal is allowed. Order pronounced in the Open Court on 04.08.2025. Sd/- (MAHAVIR SINGH) VICE PRESIDENT Date: 04.08.2025 SRBhatnaggar Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT Assistant Registrar, ITAT, Delhi Bench Printed from counselvise.com "