ESS AAR Corporate Services Pvt. Ltd. Vs. ACIT/DCIT, Central Circle, Karnal

Parties Involved

Facts Summary

The case involves an appeal by ESS AAR Corporate Services Pvt. Ltd. against the order of the Commissioner of Income Tax (Appeals)-3, Gurgaon, dated 29.07.2025, in case no. 10382/2019-20. The appeal pertains to the assessment year 2017-18 under section 143(3) of the Income-tax Act, 1961. The assessee challenges the treatment of its cash deposits of Rs.7,70,000/- during demonetization as unexplained under section 68 read with section 115BBE of the Act. The assessee is engaged in providing consultancy services and trading in agricultural implements. The lower authorities had upheld the addition of the cash deposits as unexplained income.…

Legal Issues

• 1. Whether the lower authorities erred in treating the cash deposits of Rs.7,70,000/- as unexplained income under section 68 read with section 115BBE of the Act.
• 2. Whether the assessee should be assessed under section 115BBE of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• New Bhola Sons Jewellers Vs Income Tax Officer

  Delhi Bench ‘E’, New Delhi benchAY 2017-18Partly Allowed

• Sh. Raj Kumar Aggarwal Vs Income Tax Officer, Ward-36(2), New Delhi

• Roshni Kapoor Vs Income Tax Officer, Ward-50(3), New Delhi

• Yogesh Pruthi Vs ACIT, Circle-43(1), New Delhi-110002

• M/s Femmella Fashions India Ltd. Vs Income Tax Officer, Ward-9(1), New Delhi-110002

• Sanmati Packaging Pvt. Ltd. vs. ITO

  Delhi Bench benchAY 2017-18Partly Allowed