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Judgment
This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, [in short, the “Ld. CIT(A)/NFAC”], Delhi’s order dated 02.09.2025 having DIN & Order No. ITBA/NFAC/S/250/2025-26/1080267558(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. He has accordingly proceeded ex-parte.
Next comes the sole substantive issue of the parties. Learned departmental representative vehemently supports the lower authorities’ impugned action assessing the assessee’ entire cash deposits of Rs. 30.01 lakhs during the demonetization period as unexplained u/s 69A of the Act. His case accordingly is that the assessee has all along failed to plead and prove his explanation attributing the source of the said deposits to his regular business sales made in cash.
I have given my thoughtful consideration to the assessee and the revenue’s respective submission. I find no reason to sustain the impugned addition in entirety. This is for the precise reason that the learned assessing authorities have already accepted the assessee’s total sales of Rs. 47.64 lakhs, reduced by the impugned cash deposits; as genuine, as per the assessment order itself. Meaning thereby the necessary presumption which would arise in the assessee’s favour that the impugned cash deposits also represent his cash sales although not proved to the entire satisfaction of the learned lower authorities. It is thus deemed appropriate in the larger interest of justice that a lump sum addition of Rs. 3.01 lakh only in his hands would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs. 27 lakhs in other words. Necessary computation shall follow as per law.
I 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 assessee shall be assessed under “normal” provisions therefore.
This assessee’s appeal is partly allowed.