AI Structured Summary
Not yet generated for this judgment
Judgment
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s order dated 22.10.2025 passed in DIN and order No. ITBA/NFAC/S/250/2025-26/1081923616(1), involving proceedings under section 143(3) of the Income-tax Act, 1961; hereinafter referred to as ‘the Act’.
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
It next transpires with the able assistance coming from the Revenue side that the assessee/appellant is aggrieved against the Assessing Officer’s assessment order dated 26.12.2019 treating his cash deposits of Rs. 1,35,92,000/- as unexplained u/s 68 of the Act as partly upheld to the extent of Rs. 1,25,92,000/- in the lower appellate discussion.
It is in this factual backdrop that the Revenue vehemently argues in support of the impugned addition that the same deserves to be upheld on account of the assessee’s failure in proving source of these cash deposits. There does not appear to be much a dispute that the assessee/ a company has all along having carried out its regular business activity in jewellery sector which stands further supported by the regular books of accounts as well as compliance to VAT provisions as well. The fact however remains that it has failed to plead and prove the necessary reconciliation/ verification of its regular sales turnover viz-a-viz. the impugned cash deposits to the entire satisfaction of both the learned lower authorities. We deem it appropriate in this peculiar backdrop that a lumpsump addition of Rs. 6 Lakhs only in the assessee’s hands in such an instance would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs. 1,19,92,000/- in other words.
We further quote S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) wherein their lordships have settled the issue that the impugned statutory provision of section 115BBE would come into effect on the transaction done on or after 01.04.2017. The sole assessee shall be assessed under “normal” provisions only.
This assessee’s appeal is partly allowed.