Marche Retail Pvt. Ltd. Vs ACIT (ITAT Delhi)
In the case of Marche Retail Pvt. Ltd., the ITAT Delhi deleted the addition of ₹35,22,000 made u/s 68 r.w.s. 115BBE relating to demonetisation-period cash deposits. The AO treated certain December-2016 deposits as unexplained mainly because they were not deposited immediately after the announcement of demonetisation, while CIT(A) dismissed the appeal ex-parte.
The Tribunal observed that the assessee was engaged in FMCG retail with multiple outlets and had already furnished detailed cash deposit statements, VAT returns, bank records & audited books before the AO. Cash balance as on demonetisation date was ₹1.48 crore, and subsequent cash sales during November & December 2016 were sufficient to explain the deposits. The AO made the addition merely on timing of deposits without rejecting books or bringing contrary evidence.
ITAT held that once books are audited and cash sales are recorded & reconciled, deposits cannot be treated as unexplained merely due to staggered deposits across outlets. Since adequate source of cash existed and no adverse material was found, the addition was deleted and the assessee’s appeal allowed on merits.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to ‘ld. CIT(A)’) dated 16.07.2025 for AY 2017-18.
