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Mrs. Zia Rathi vs. Income Tax Officer

Case No: ITA No.1881/Del/2024
Court: Income Tax Appellate Tribunal, Delhi Bench ‘E’
Date: 1/16/2026

Parties Involved

appellantMrs. Zia Rathi
respondentIncome Tax Officer, Ward-44(3), Delhi

Facts Summary

The assessee, Mrs. Zia Rathi, is the sole proprietor of M/s Veezee Traders, engaged in the business of trading PVC Coated Imported Fabric. The main supplier of goods is M/s Trinity Overseas, who imports from outside India and sells to the assessee. The case was selected for scrutiny due to large cash deposits during demonetization. The Assessing Officer (AO) concluded that the cash deposited during demonetization of Rs. 2,23,46,000/- was unexplained and made an addition on a protective basis. The appeal before the Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi was dismissed, sustaining the addition. The assessee then appealed to the Tribunal, arguing that the addition was unjustified and based on assumptions without proper evidence.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the addition of Rs. 2,23,46,000/- on account of cash deposits during demonetization is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

11 precedents cited in this judgement.

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