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Judgment
This assessee’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s DIN & Order No. ITBA/NFAC/S/250-2025-26/1082129876(1) dated 30.10.2025, in proceedings u/s 147/144 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
Coming to the assessee’s sole substantive issue raised against the action of the lower authorities treating her cash deposits during the demonetization amounting to Rs. 12.50 lacs as unexplained, there is hardly any dispute between the parties that she admittedly is the proprietor of M/s Asha Iron Store dealing in all kinds of iron and steel items at Panipat. She is further stated to regular income tax return filer all along as well.
That being the case, the necessary prima facie inference which arises in the assessee’s favour in the given facts and circumstances of the case is that the impugned cash deposits form part of her regular business in sales in cash although not specifically reconciled and verified to the entire satisfaction of both the lower authorities. It is thus deemed appropriate in the larger interest of justice to sustain the impugned lumpsum addition Rs. 1.50 lacs in the hands of the assessee as just and proper with the rider that the same shall not be a precedent. The assessee gets relief of Rs. 11 lacs in other words. Necessary computation shall follow.
So far as the assessee’s assessment u/s 115BBE is concerned, case law SMILE Microfinance Ltd. Vs. AC IT, W.P. (MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has settled the issue against the department that the impugned statutory provisions would come into effect on the transaction done on or after 01.04.2017. The assessee accordingl y directed not to be assessed u/s 115BBE of the Act in very terms.
This assessee’s appeal is partl y allowed.