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Judgment
This assessee’s appeal for Assessment Year 2017-18 arises against the Addl./JC IT(A)-2, Surat’s DIN & order No. ITBA/APL/ S/250/2025-26/1079116811(1) dated 31.07.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the p arties at length. Case file perused.
Delay of 50 days in filing of the instant appeal is condoned in the larger interest of justice in lig ht of Collector Land Acquisition vs. Mst. Katiji & Ors (1987) 167 ITR 471 (SC).
Coming to the assessee’s sole substantive ground raised herein, it is evident at the outset that both the learned lower authorities have treated his cash deposits during demonetizatio n amounting to Rs.12,49,000/- as unexplained u/s 69A r.w.s. 1 15BBE of the Act; in assessment order dated 09.12.2019 as upheld in the lower appellate discussion.
Faced with this situation, learne d counsel has invited the tribunal’s attention to the relevant case records indicating the assessee’s opening cash in hand as we ll as bank withdrawals, tuition income and drawings etc., to buttress the point that he had indeed pleaded and proved the source of the impugned cash deposits in both the lower proceedings. T he fact however remains that the assessee has not been able to file and prove all of his cogent supportive evidence indicating him even having a regular source of income all along . The fact also remains that possibility of accumulated past savings in such an instance keeping in mind the assessee and his family’s socio economic status could not be alto gether denied as well. Be that as it may, it is deemed appropriate that a lump sum addition of Rs.3 ,49,000/- only in the given facts wo uld be just and proper with a rider that the same shall not be treated as a precedent. The assessee ge ts re lief o f Rs.9 ,00,000/- in other words.
So far as assessee’s assessment under Section 115BBE is concerned, I quote S.M.I.L.E Microfinance Limited Vs. The ACIT CC-1 in W .P.(MD) No.2078 of 2020 & W.M.P. (MD) No. 1742 of 2020 held that the said provision applied for transactions done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under normal provisions only.
This assessee’s appeal is partly allowed.