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DCIT vs. Dembla Timber Company Pvt. Ltd.

Case No: ITA No.3237/Del/2023
Court: Income Tax Appellate Tribunal, Delhi Bench ‘B’
Date: 3/25/2025

Parties Involved

AppellantDCIT, Circle-7(1), Delhi
RespondentDembla Timber Company Pvt. Ltd.

Facts Summary

The assessee, Dembla Timber Company Pvt. Ltd., is engaged in the business of manufacturing and trading of Sawn Timber. The return of income was e-filed on 30.10.2017 declaring income of Rs.54,82,950/-. During scrutiny, the Assessing Officer (AO) made an addition of Rs.98,20,000/- as unexplained money under section 68 of the Income Tax Act, 1961, due to total cash deposited during demonetization. Additionally, an addition of Rs.18,43,315/- was made under section 41(1) for three static creditor accounts. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who allowed the appeal, leading the Revenue to appeal to the Tribunal.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the Ld. NFAC has erred in deleting the addition of Rs. 98,20,000/- made u/s 68 of the Act.
  • 2. Whether the Ld. NFAC has erred in deleting the addition amounting to Rs. 18,43,315/- u/s 41 of IT Act 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

6 precedents cited in this judgement.

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DCIT vs. Dembla Timber Company Pvt. Ltd. | ITA No.3237/Del/2023 | 2025 | Opakhya