TaxTMI 
TaxTMI 
2026 (10) TMI 508
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..... The word 'Act' herein this order would mean Income Tax Act, 1961. 2. The assessee has raised following grounds of appeal:- 1) That the order dated 20.01.2026 passed u/s 250 of the Income-tax Act, 1961 (the "Act") by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Ld. Assessing Officer, Ward 43(8), New Delhi in assessing the total income of the Appellant at Rs. 51,91,330/- as against returned income of Rs. 7,76,330/- 2) That the order dated 20.01.2026 passed u/s 250 of the Income Tax Act, 1961 by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi is ag....
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....68 of the Act. The ld. CIT(A) confirmed the findings of the ld. Assessing Officer and sustained the addition. 4. We have heard rival submissions in the light of material placed on records. 5. It is the case of the ld. Counsel for the assessee that it has made genuine sales. The ld. Counsel submitted that during the course of assessment proceedings, it has provided the copy of cash book prepared by it for FY 2015-16 and 2016-17 and copies of VAT return as well as assessment orders passed under Haryana VAT Act. It was submitted that the turnover indicated by the assessee stands accepted. The ld. Counsel has argued that since it is a small tax payer, it had subscribed to provision of section 44AD of presumptive taxation and therefore not....
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....essee has given a certificate regarding the production and availability of the same before the ld. Assessing Officer. Consequently, we fail to comprehend the argument of the ld. Assessing Officer in his assessment order regarding non-supply of documents by the assessee. From the perusal of the impugned document that the same allude towards regular sale activity pursued by the appellant. We have noted that on the issue at hand, on identical facts, this Tribunal in the case of Indowestern Commodities and Energy Trade Private Limited in ITA No.5027/DEL/2025, vide order dated 15.05.2026 has observed as under:- "....6. We have heard the rival submissions in the light of material available on record. We have noted that this Tribunal has ....
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....he assessee had duly explained the source of these cash deposits to regular trading activity in electronics business etc. by filing all the relevant details which have gone unrebutted from departmental side. The Revenue fails in its instant first and foremost substantive grievance in very terms..." 8. Further, in ITA No.1337/Del/2024 in the case of M/s HKT Retail Ventures Pvt. Ltd. dated 07.05.2025, another Co-ordinate Bench has held "....3. We have heard the rival submissions and perused the materials available on record. The Assessee Company is engaged in the business of retail trading of home décor products including furniture, sculptures, lights etc. The return of income for the assessment year 17-18 was electro....
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....sh deposits were not made by the assessee in the earlier year. The assessee to buttress this argument submitted that the business itself was started only in October 2016 and hence the same is not comparable with that of the earlier year. The assessee specifically stated that the retail showroom in Delhi started in October 2016. This showroom was taken on rent from Mrs. Rajini Apan from July 2016, post which showroom fit outs took 3 to 4 months and the assessee being a new showroom, lot of retail sales took place during the months of October to 8th November 2016. The assessee also submitted the complete copies of sale bills, cash book, VAT returns (both original and revised) and purchase invoices. The assessee also submitted that it had suff....
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....see had furnished the sale invoices, purchase invoices, stock registers, VAT returns (both original and revised) cash book, entire books of accounts before the learned AO. None of these documents and records were even rejected by the learned AO. The assessee had filed revised VAT returns for the third quarter only to change the input tax credit figure thereon. The sales figure in original VAT returns and revised VAT returns remain unchanged. The sales made by the assessee had not been doubted by the revenue. Hence the revenue having accepted the sales made by the assessee, ought not to have made separate addition on account of cash deposits by treating it as unexplained. Otherwise, the same would amount to double addition made by the learne....