Brijendra Kumar Mittal vs ACIT

This assessee’s appeal for Assessment Year 2017-18 arises against the Addl./JCIT( A) -1, Chand igarh’s DIN & order No.IT BA/APL/S/250/2025-26/1086522670(1) dated 26.02.2026, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in shor t “the Act”).

Heard both the p arties at length. Case file perused.

Coming to the assessee’s sole substantive ground raised herein, it transpires during the course of hearing that both the learned lower authorities have treated his cash deposits during demonetizatio n amounting to Rs.9 ,00,000/- as unexplained u/s 69A; in assessment order dated 27.11.2019 as upheld in the lower appellate discussion.

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That being the case, learned counsel fir st of all invites the tribunal’s attention to page 9 in the paper book indicating that the assessee had withdrawn a total amount of Rs.8,50,000/-going by his bank statement as on 30 & 31.03.2016. He has further attributed rental income derived in cash to the tune of Rs.3 ,50,000/- in the intervening period and the correspond ing house property details have also been in the assessee’s return at page 3 of the paper book. The fact also remains that neither the asse ssee has filed further details to his regular house hold withdrawals nor got all the relevant facts to this e ffect reconciled and verified to the entire satisfaction of both the learned lower authorities. It is thus deemed appropriate in this factual backdrop that a lump sum addition of Rs.1,00,000/-only in the asse ssee’s hands would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.8,00 ,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.

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This assessee’s appeal is partly allowed. Order Pronounced in the Open Court o n 09/04/2026.