JALANSONS JEWELLERS,DELHI vs. INCOME TAX OFFICER, WARD 51(3), DELHI, 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/250/2025-26/1077100159(1) dated 17.06.2025, 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.
Coming to the sole substantive issue between the parties, it is noticed from a perusal of the case file that the learned lower authorities have treated the assessee’s cash deposits during demonetization of Rs.32,38,373/- as unexplained and liable to be assessed u/s 115BBE of the Act, in assessment order dated 29.12.2019 and upheld in the lower appellate discussion. Jalansons Jewellers
2
4. It is noticed in this factual backdrop that there is no dispute between the parties qua the assessee being engaged in regular business activity of sale of jewellery etc. all along in preceding as well as in the impugned assessment year. That being the case and in light of the fact that it has already filed all the relevant details of regular business transactions, the necessary inference which would arise is that the impugned cash deposits prima facie represent it’s business turnover only although not specifically reconciled and verified in both the lower proceedings. It is thus deemed appropriate in the larger interest of justice that a lump sum addition of Rs.1,00,000/- only with a rider that the same shall not be treated as precedent. The assessee gets relief of Rs.31,38,373/- 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. 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.
No other grounds or argument has been pressed before the tribunal. Jalansons Jewellers
3
7. 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*