MRS. SWEETY SURI,DELHI vs. ITO WARD-45(1), DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2025-26/1077253437(1) dated 26.06.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that both the learned lower authorities have treated the assessee’s cash deposits during demonetization of Rs.42,00,000/- as unexplained and liable to be assessed u/s 115BBE of the Act, in assessment order dated 17.12.2019 and upheld in the lower appellate discussion. Sweety Suri
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4. Learned counsel’s sole substantive argument in this factual backdrop is that the assessee had sold an immovable property way back in the year 2011 and withdrew the impugned cash thereafter in the said financial year and kept it all along the same in entire intervening period. The tribunal finds no merit in the assessee’s foregoing explanation since not satisfying the test of human probabilities in light of Sumati
Prasad More (1971) 82 ITR 540. The fact also remains that keeping in mind the assessee’s socio economic status and her past savings, both the learned lower authorities’
action brushing aside her explanation in entirety could not be concerned with.
Faced with this situation and in light of the assessee’s social economic status, it is deemed appropriate in the larger interest of justice to restrict the impugned addition of Rs.42,00,000/- to a lump sum amount of Rs.32,00,000/- with a rider that the same shall not be treated as precedent. The assessee gets relief of Rs.10,00,000/- in other words. Necessary computation shall follow as per law.
So far as assessee’s assessment under Section 115BBE is concerned, we 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. Sweety Suri
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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. Order Pronounced in the Open Court on 19/08/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 19/08/2025
*Subodh Kumar, Sr. PS*