NN FOODS,DELHI vs. INCOME TAX OFFICER WARD 34(6), 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 Addl./JCIT(A)-10, Mumbai’s DIN & order No.
ITBA/APL/S/250/2024-25/1072830988 (1) dated 03.02.2025, in proceedings u/s 144 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
Coming straightway to the assessee’s sole substantive grievance pressed during the course of hearing challenging both the learned lower authorities’ action making section 69A r.w.s. 115BBE addition of Rs.18,80,000/- deposited during demonetization, Mr. Wadhwa has invited the tribunal’s attention to his detailed paper book running into 58 pages that the same represents cash sale consideration of chocolate N N Foods
2
making machine which has been duly supported by all the corresponding vouchers as well as purchase invoice at page 23
onwards.
Learned departmental representative has drawn strong support from both the lower respective findings treating assessee’s above cash deposits as unexplained attracting higher rate of taxation u/s 115BBE of the Act.
I have given my thoughtful consideration to the assessee’s and the department foregoing vehement rival submissions. The fact remains that although the assessee has filed the above overwhelming voluminous evidence in support of it’s contentions that the impugned cash deposits infact represents cash sale consideration of the above machinery which could not be pleaded and proved with all the relevant facts to the entire satisfaction of the learned lower authorities. This is indeed besides the point that both the learned lower authorities have also not been given any material to rebut the same in their respective discussions. Be that as it may, it is thus deemed appropriate in this factual backdrop and in the larger interest of justice that a lump sum addition of Rs.3,00,000/- only would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of N N Foods
3
Rs.15,80,000/- in other words. Necessary computation shall follow as per law.
So far as assessee’s assessment under Section 115BBE is concerned, I 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.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 03/07/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 03/07/2025
*Subodh Kumar, Sr. PS*