AI Structured Summary
Not yet generated for this judgment
Judgment
This assessee’s appeal for assessment year 2017-18, arises against the ld National Faceless Appeal Centre (NFAC), Delhi [in short, the “CIT(A)] dated 24.12.2025 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 emerges during the course of hearing with the able assistance coming from the revenue side both the learned lower authorities have treated the assessee’s cash deposits during demonization of Rs. 48.50 lakhs as unexplained to the tune of Rs. 29,28,553/- in the assessment order dated 27.12.2019 as upheld in the lower appellate proceedings.
This being the case, the revenue could hardly dispute that both the learned lower authorities have neither granted benefit of the assessee’s regular business turnover duly declared in the books nor its trading activity of stationary items etc both in assessment order as well lower appellate discussion. The fact also remains that the assessee has failed to plead and prove all the relevant facts attributing source of the impugned cash deposit as its part of the regular business turnover to the entire satisfaction of the lower authorities. It is thus deemed appropriate that a lump sum addition of Rs. 2.5 lakhs only in the assessee’s hand would be just and proper with a rider that the same shall not be as a precedent. Necessary computation shall follow.
Learned counsel further quotes 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” provision in very terms.
This assessee’s appeal is partly allowed.