DCIT, Central Circle 1, Noida vs. Ms. Radhika Mehra

Parties Involved

Facts Summary

The Revenue has filed an appeal against the order of the Learned Commissioner of Income Tax (Appeals)-3, Noida, dated 04.03.2025, for the Assessment Year 2017-18. During the assessment proceedings, the Assessing Officer (AO) conducted a survey under section 133A of the Income-tax Act, 1961, on 18.03.2017. The assessee declared income for the year under consideration and was assessed to tax under section 143(3) of the Act on 29.12.2019. The AO observed that the assessee had failed to substantiate a cash deposit of Rs.1,45,00,000/- during the demonetization period and the source of cash sales during the same period was questionable. The AO made additions under section 68 read with section 115BBE and disallowed an additional capital introduction of Rs.50 lakhs under section 68 of the Act. Aggrieved by this order, the assessee appealed to the Learned Commissioner of Income Tax (Appeals)-3, Noida, who deleted the additions made by the AO.…

Legal Issues

• 1. Whether the Learned Commissioner of Income Tax (Appeals)-3, Noida erred in deleting the addition of Rs.1,45,00,000/- made under section 68 of the Income Tax Act, 1961, on account of cash deposit during the demonetization period.
• 2. Whether the Learned Commissioner of Income Tax (Appeals)-3, Noida erred in deleting the addition of Rs.1,45,00,000/- made under section 68 of the Income Tax Act, 1961, on account of cash deposit during the demonetization period, disregarding the findings of the AO.
• 3. Whether the Learned Commissioner of Income Tax (Appeals)-3, Noida erred in deleting the addition of Rs.50,00,000/- made by the Assessing Officer as unexplained capital introduction.
• 4. Whether the Learned Commissioner of Income Tax (Appeals)-3, Noida erred in law by admitting additional evidence filed under Rule-46A of the Income Tax Rules-1962, without referring to the reasonable cause which prevented the assessee to produce the same during the assessment proceedings.

Judgment Outcome

Decided in favour of Assessee.

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