Sanjit vs DCIT

PER MADHUMITA ROY, JM:

The instant appeal filed by the assessee is directed against the order dated 10.10.2025 passed by the Ld. Commissioner of Income-tax (Appeals)-3, Gurgaon [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the assessment order dated 27.12.2022 passed by the DCIT, Central Circle-1, Gurgaon (hereinafter referred to as ‘the ld. AO’) under Section 143(3) of the Act for Assessment Year 2021-22.

The assessee is running a business of food grains under the name and style of M/s S.S. Trading Company at Part 2, Gali No.12, Near Service Road, Mukundpur, Delhi – 110042. On 21.01.2021during the routine checking at Gulabi Bagh, Delhi, cash of Rs.12,90,000/- was seized by the Delhi Police from the employee of the assessee. The cash pertained to the employer, is of the business receipts, as per the case made out by the assessee which was not found to be acceptable and the amount was added under Section 69A of the Act in the hands of the assessee which was confirmed by the First Appellate Authority, hence, the instant appeal before us.

We have heard the rival submissions and considered the relevant material on record. It is the case of the assessee that cash source of the assessee was business receipts which was directed to be collected by his employee and which was supposed to be deposited in the bank. Having regard to the business carried on by the assessee, the explanation rendered by the assessee with supporting documents is found to be acceptable and, thus, the addition is deleted.

In the result, the appeal filed by the assessee is allowed.