ITO Vs Vinod Kumar Kansal (ITAT Delhi)
The ITAT Delhi dismissed the Revenue’s appeal and upheld deletion of addition of ₹1.54 crore made on account of cash deposits during the demonetisation period. The assessee, a jeweller, explained that the deposits were sourced from recorded cash sales and existing cash balances reflected in regularly maintained books, supported by month-wise cash book, VAT records, stock details and audited financial statements (as seen from the cash flow table reproduced on page 2). The Tribunal noted that purchases, sales, stock movement and VAT turnover were accepted by the Department and no negative cash balance was found. Since the AO had accepted the books and turnover, treating the same cash again as unexplained would result in double addition. Accordingly, the addition u/s 68 was held unsustainable and the CIT(A)’s deletion was confirmed; Revenue’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The appeal in ITA No.3519/Del/2024 for AY 2017-18, arises out of the order of the ld National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 2219.06.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 21.12.2019 by the Assessing Officer, ITO, Ward-43(8), Delhi (hereinafter referred to as ‘ld. AO’).
