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Judgment
ORDER
This assessee’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s Order dated 19.03.2026, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
It is noticed that during the course of hearing with the able assistance coming from the Revenue side that out of entire cash deposits of Rs. 25,88,000/-, during demonetization period, as unexplained u/s. 69A read with section 115BBE of the Act. However, Ld. CIT(A) gave the relief of Rs. 9,00,000/- by confirming the addition of Rs. 16,88,000/-. The Revenue could hardly dispute the clinching fact that the CIT(A)/NFAC’s detailed discussions of his order that the assessee is a Forex Dealer and engaged in the business of money changer by exchange foreign currency. That being the case, it could be safely concluded that the impugned cash deposits were out of available cash in hand and source of such cash in hand was withdrawal from banks and cash sales on foreign currency, although not satisfactorily reconciled, prima facie represent the assessee’s income wherein cash component could not be altogether denied. It is thus deemed appropriate in the larger interest of justice to restrict the impugned sustained addition of 16,88,000/- to a lumsum figure of Rs. 2,00,000/- only with a rider that the same shall not be treated as precedent. The Assessee gets relief of Rs. 14,88,000/- in very terms. Necessary computation shall follow as per law.
So far as the assessee’s assessment u/s 115BBE is concerned, Hon’ble Madras High Court in SMILE Microfinance Ltd. Vs. ACIT, W.P. (MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue against the department that the law applies to the transaction on or after 01.04.2017 only.
This assessee’s appeal is partly allowed in above terms.
Order Pronounced in the Open Court on 08/07/2026.