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Facts
The Revenue's appeal for AY 2017-18 challenged an order concerning unexplained cash deposits treated as income under Sections 68/69/69A and taxed under Section 115BBE. The AO treated cash deposits of Rs. 1,38,80,600/- as unexplained.
Held
The Tribunal held that Section 115BBE applies only to transactions on or after April 1, 2017, as settled by the Madras High Court. The Revenue's appeal was found to be hit by CBDT Circular No. 09 of 2024 due to the tax effect being less than Rs. 60 lakhs.
Key Issues
Applicability of Section 115BBE to transactions before April 1, 2017, and whether the appeal meets the tax effect criteria stipulated by CBDT Circular No. 09 of 2024.
Sections Cited
143(3), 68, 69, 69A, 115BBE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘B’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL
O R D E R PER SATBEER SINGH GODARA, J.M: This Revenue’s appeal for assessment year 2017-18 arises against National Faceless Appeal Centre (NFAC) Delhi’s’ order dated 05.06.2024 [DIN & Order No. ITBA/NFAC/S/2024-25/1065402135(1)], in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused.
It transpires at the outset that the Revenue’s sole substantive ground raised in the instant appeal seeks to revive the Assessing Officer’s action treating the
That being the case we sought to verify the total tax effect involved in the Revenue’s instant appeal. Ld. Sr. DR, submits that the ld. AO has computed the same at Rs. 1,08,26,870/-. However, we find no merit in the above computation, once Hon’ble Madras High Court in the case of 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. We thus conclude that going by the consequential tax effect computation the Revenue’s instant appeal is hit by the CBDT Circular No. 09 of 2024 dated 17.09.2024 on account of lower than the prescribed tax effect of less than Rs. 60 lakhs, as per normal provisions.
The Revenue’s instant appeal is dismissed.
Order pronounced in open court on 05.08.2025.