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Judgment
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals) -29 [in short, the “CIT(A)”], New Delhi’s order dated 08.01.2026 passed in case no. CIT(A), Delhi-20/10500/2019-20, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
Coming to the assessee’s sole substantive ground, learned CIT(A) has erred in law and on facts in confirming the Assessing Officer’s action treating the assessee’s cash deposits during demonetization amounting to Rs. 4,66,00,000/- as unexplained u/s 68 of the Act.
Both the learned representatives vehemently reiterate their respective stands in support and against the impugned cash deposit addition. There does not seem to be much a dispute between the parties that the assessee is engaged in the business of manufacturing of milk products such as doodh, ghee, paneer etc. under the name and style of M/s. Shudh Garhwal Paneer Nirmatha Sangh. He has further declared total sales turnover of Rs.156,05,13,744/- out of which cash sales was Rs.11,66,29,369/- as per the lower appellate discussion.
That being the case, it could safely be presumed that although the assessee could not reconcile and verify his impugned cash deposits forming part of sales of milk products to the satisfaction of the Assessing Officer, the same could be termed as the sole reason for rejecting his entire explanation as well. We thus deem it appropriate in this factual backdrop that a lumpsum addition of Rs.20 lakhs only in the assessee’s hands would be just and proper with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law.
So far as assessee’s assessment under section 115BBE is concerned, we 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) that the impugned statutory provision would come into effect on the transaction done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under the normal provision as per law.
No other ground or argument has been pressed before us.
This assessee’s appeal is partly allowed.