2025 (9) TMI 1659 - AT - Income Tax

Appeal allowed; addition for unexplained cash deposits under ss.68/69 deleted, department's sole substantive ground rejected

ITAT (Delhi) allowed the appeal, holding that the addition under ss.68/69 for unexplained cash deposits must be deleted. The Tribunal adopted its earlier ... Addition u/s 68/69 - unexplained cash deposit - HELD THAT:- We find merit in the assessee’s case. This is for the precise reason that our earlier order has already deleted the entire addition, which includes the part thereof as well, and, therefore, we adopt the very reason mutatis mutandis to reject the instant sole substantive ground raised at the department’s behest. Ordered accordingly. ITAT Delhi dealt with Revenue's appeal for AY 2017-18 against the CIT(A)/NFAC order under section 143(3) of the Act. The impugned additions arose under sections 68/69A r.w.s. 115BBE, totalling Rs. 2,52,75,406/-, of which the Assessing Officer had allowed only a lumpsum reduction to one-third by bank-wise deposits. Revenue sought restoration of the full addition. The assessee relied on an earlier order in ITA No. 2271/Del/2024 (13-12-2024) which had 'deleted the entire addition', including the unexplained cash deposit of Rs. 94,66,666/-. Applying that precedent 'mutatis mutandis', the Tribunal found the assessee's position meritorious and concluded there was no justification to sustain the partial restoration sought by Revenue. The Tribunal therefore rejected the sole substantive ground raised by Revenue and dismissed the appeal.