Shodan Singh vs Income Tax Officer

This assessee’s appeal for Assessment Year 2017-18 arises against the C IT(A)/NFAC, De lhi’ s DIN & order No. ITBA/NFAC/S/250/2023-24/1061609669(1) dated 27.02.2024, in proceed ings 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.

It emerges at the outset d uring the co urse of hearing that the assessee/appellant raises his sole substantive grievance directed against both the learned lower author ities’ action treating his cash deposits during demone tization amounting to Rs.18,36,000/- as unexplained u/s 69A r.w .s. 1 15BBE of the Act, in assessment order dated 28.12.2019 as upheld in the lower appellate discussion.

That being the case, bo th the parties vehemently reiterate the ir respective stand against and in support of the impug ned additio n. The assessee ad mittedly happens to be a retired army man/pensioner . There does not appear much an issue between the parties that he also ow ns/co-owns agricultural lands as well. His further case so ught to be made out is that he was engaged in dairy busine ss since having purchase d and so ld of various buffaloes and cows e tc. w hich are further sought to be proved by way of duly shown-in-affidavit as well. The fact however remains that ne ither both the learned lower authorities have considered his foregoing socio eco nomic status nor have they given any credit of his and his family accumulated savings all along in the lower pro ceedings.

Be that as it may, this tribunal d eems it appropriate after having considered the assessee’s failure in reco nciliation and verification o f all his pleadings to the entire satisfaction of both the learned lo wer author ities that a lump sum addition of Rs.2 ,00,000/- only would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.16,36,000/- 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.

This assessee’s appeal is partly allowed.