IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : A : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGGARWAL, ACCOUNTANT MEMBER ITA No. & Assessment Appellant Respondent Year ITA No.3094/Del/2023 DCIT, Central Circle-13, M/s Balar Marketing Pvt. Ltd., AY: 2012-13 New Delhi. 217, Functional Industrial Area, Patparganj, Delhi – 110 091.

PAN: AAACB0361N ITAs No.3143 to M/s Balar Marketing ACIT, 3148/Del/2023 Pvt. Ltd., Central Circle-13, New Delhi AYs: 2016-17 to 2021- C/o Dr. Ravi Gupta, B-

22 41, LGF, Kailash Colony, New Delhi – 110 048. PAN: AAACB0361N ITAs No.3422 to DCIT, M/s Balar Marketing Pvt. Ltd., 3426/Del/2023 Central Circle-13, 217, Functional Industrial AYs : 2017-18 to New Delhi. Area, 2021-22 Patparganj, Delhi – 110 091.

PAN: AAACB0361N Assessee by : Shri Rajiv Khandelwal, CA;

Shri Gagan R Khandelwal, Adv;&

Shri Jaind Kumar Jaiswal, Advocate Revenue by : Shri Jitender Singh, CIT-DR Date of Hearing : 16.02.2026 Date of Pronouncement : 18.03.2026

ORDER

PER ANUBHAV SHARMA, JM:

These are appeals preferred by both the Revenue as well as the Assessee against the orders of the Ld. Commissioner of Income-tax (Appeals)-26, New Delhi (hereinafter referred to as the ‘Ld. First Appellate Authority or ‘the Ld. FAA’ in short) in appeals filed before him against the orders dated 31.03.2022 of the ld. Asstt. Commissioner of Income-tax, Central Circle-13, New Delhi (hereinafter referred to as the Ld. AO, for short) passed u/s 153A r.w.s. 143(3)/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Further details of the orders of the lower authorities are as under:-

2. Heard and perused the records. The brief background of impugned assessment are that a search and seizure operation u/s 132 of the Income Tax Act, 1961 was conducted on 23.03.2021 and on subsequent dates in the case of Balar Marketing Pvt Ltd, Sh. Parasmal Jain. The group was originally into marketing and trading of copper wires and other similar goods. They were known in market by the name of Kundan Cables and now they have a brand of “Fybros”. They are manufacturing copper wires and cables and various other electrical equipment. The group companies is alleged to be involved in out of books sales, out of books purchases, bogus purchases, raising bogus share capital and share premium from dummy entities and several cash expenses. During the course of assessment AO examined the issue observing that during the course of Search Proceedings at residence premise of Sh. Vimal Jain, D-99, Block-D, Jhilmil Colony, Delhi on 23.03.2021, various electronic devices such as Hard Disk , Mobile Phone, Pendriveetc were found and seized and the same were Annexurized as A1 to A3. During examination of this Annexures A1 to A3, allegedly various incriminating evidences were found that includes the exchange of Cash Tokens through Hawala Network of M/s. Balar Marketing Private Limited with various sales and purchase parties. Shri Vimal Jain, who is working as the Administrative Head in M/s BalarMarketing Private Limited allegedly admitted in his statement that he made cash transactions for M/s Balar Marketing Private Limited which was executed through Hawala route. Sh.Vimal Jain in his statement recorded under section 132(4) and 132 (1A) has allegedly explained the modus operandi of the cash sales and has admitted that the assessee company has sold goods in cash to various parties. Further, during the course of search proceedings, digital data was extracted/cloned from the two phones of Shri Vimal Jain (iPhone 7 and Panasonic). On analysis of this digital data, allegedly Whatsapp as well as SMS chats were said to be found in the phone of Shri Vimal Jain which allegedly pertained to payment as well receipt of cash from various sale and purchase parties via exchange of Tokens. AO records that on analysis of whatsapp chat of Sh. Vimal Jain, extracted from cloned copy (working copy) of mobile (I phone 7 and Panasonic) of Shri Vimal Jain, seized during the