Anil Madaan Vs ITO (ITAT Delhi)
The appeal arose from an assessment order passed under Section 143(3) of the Income-tax Act, 1961 for Assessment Year 2017-18, in which cash deposits of ₹35,66,768 made during the demonetisation period were treated as unexplained cash credits under Section 68. The addition was upheld by the CIT(A)/NFAC, leading to the present appeal before the ITAT Delhi.
The Tribunal noted that there was no dispute that the assessee was engaged in the business of purchase and sale of footwear, an unorganised sector in which the possibility of cash turnover could not be ruled out. It further observed that the assessee had consistently furnished relevant details relating to its business turnover during the demonetisation period. At the same time, the Tribunal recorded that the assessee had not fully discharged the burden of explaining and proving its case in respect of the cash deposits.
Considering the overall factual background, the Tribunal held that sustaining the entire addition was not justified. It considered a lump sum addition of ₹2,00,000 to be just and proper, while specifically directing that the order should not be treated as a precedent. Consequently, the assessee was granted relief of ₹33,66,768, with necessary computation to be carried out in accordance with law.
