GIRISH GUPTA HUF,2062, GALI MAHAVIR TELIWARA vs. INCOME TAX OFFICER, CIVIC CENTRE
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARAAssessment Year: 2017-18
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal ITA no. 4015/Del/2025 for assessment year
2017-18 arises against CIT(A)/ NFAC, Delhi’s order dated 30.07.2024 (DIN &
Order No. ITBA/NFAC/S/250/2024-25/1067132866(1), in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
2. It emerges during the course of hearing that both the learned lower authorities have treated the assessee’s cash deposits of Rs. 14,00,000/- as unexplained u/s 69A read with Section 115BBE of the Act; in assessment order dated 10.12.2019 and upheld in lower appellate discussion.
2
Girish Gupta
That being the case, a perusal of the assessment records indicate that the assessee’s income all along has been assessed in preceding assessment years and it is stated to be engaged in small type finance activities. This clinching fact has remained unrebutted from the Revenue’s side in principle. It is therefore clear in this background that necessary influence which would arise in the given facts is that impugned cash prima facie represents the assessee’s business receipts in finance activities, liable to be assessed only qua the profit element embedded therein. I, accordingly, direct the learned assessing authority to assess the impugned cash deposits @ 10% coming to 1.4 lakh only. Ordered accordingly. Necessary consequential computation shall follow as per law subject to the rider that the same shall not be treated as a precedent. The assessee gets relief of Rs. 12.6 lakhs in other words. 5. So far as the assessees’ assessment u/s 115BBE is concerned, the Revenue could hardly dispute that hon’ble Madras high court in SMILE Microfinance Ltd. v. ACIT in WP(MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue that Section 115BBE applies on transactions on or after 01.04.2017 only. Learned Assessing Officer shall ensure that the assessee shall be assessed under normal provisions qua the above addition of Rs. 1.4 lakh. Necessary computation shall follow as per law.
3
Girish Gupta
This assessee’s appeal ITA No. 4015/Del/2025 is partly allowed.
Order pronounced in open court on 20.08.2025 (SATBEER SINGH GODARA)
JUDICIAL MEMBER
*MP*