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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 “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1085952171(1), dated 12.02.2026 involving proceedings under section 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
For the reasons stated in the assessee’s condonation averments, delay of 39 days in filing of the instant appeal is condoned in light of Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC).
Next comes the sole substantive issue between the parties. The assessee admittedly appears to have made cash deposits during demonetization amounting to Rs. 12.50 lakhs is being treated as unexplained in both assessment order as well as in the lower appellate discussion. This is what forms the sole substantive issue for the tribunal’s apt adjudication herein.
It is in this factual backdrop that the learned counsel representing the assessee invites the tribunal’s attention to page 14 in the CIT(A) lower appellate discussion indicating his total cash withdrawals right from 21.03.2015 onwards till 13.12.2016 amounting to Rs. 15 lakhs which is treated to be his preceding withdrawals as the source of the impugned cash deposits all along to the entire satisfaction of both the learned lower authorities be that as it may. The fact however remains that they have not granted him credit of his foregoing cash withdrawals as well. It is thus deem proper in the larger interest of justice that a lumpsump addition of Rs. 2 lakhs only in the assessee’s hands shall be just and proper with a rider that the same shall be just and proper with a rider that the same shall not be treated as a precedent one. He gets relief of Rs. 10.50 lakhs in other words. Necessary computation shall follow as per law.
Learned counsel 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 lordship has 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.
This assessee’s appeal is partly allowed.