ARUN MALIK,SOUTH WEST DELHI vs. INCOME TAX OFFICER, DELHI

This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National
Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1064804473(1), dated
10.05.2024 involving proceedings under section 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.
2. A perusal of the assessee’s instant case file indicates that the learned Assessing Officer had completed its assessment dated
10.12.2019 in his case treating the cash deposits in question
Assessee by Sh. Ankur Das, Adv.
Department by Sh. Manoj Kumar, Sr. DR
Date of hearing
02.07.2025
Date of pronouncement
02.07.2025
2 | P a g e during demonetization amounting to Rs.23.14
lakhs as unexplained under section 69A r.w.s. 115BBE of the Act which stand restricted to Rs.18,51,200/- in the CIT(A)/NFAC’s detailed discussion thereby granting relief of 20% to him as lifelong cash savings.

This is what leaves the assessee aggrieved.
3. The tribunal has given its thoughtful consideration to the assessee’s and the Revenue’s vehement rival submission reiterating their respective stands. After vehemently arguing for some time, learned counsel states that the assessee has not been able to prove any regular source of income all along so as to get out of the rigor of section 69A. The fact however remains that the assessee is stated to be a 50-year-old person in the relevant previous year, and in such a situation, possibility of his family’s cash savings could also not be ruled out although not satisfactorily explained before both the learned lower authorities.
4. Be that as it may, it is thus deemed appropriate in the larger interest of justice that a lumpsum relief of Rs.3,51,200/- in the assessee’s hands would be just and proper with a rider that the same shall not be treated as a precedent. The impugned addition
3 | P a g e is upheld to the extent of Rs.15 lakhs in other words. Necessary computation shall follow as per law.
5. So far as assessee’s assessment under section 115BBE is concerned, I quote S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD)
No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) that the impugned statutory provision would come into effect on the transaction done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under the normal provision as per law.
6. This assessee’s appeal is partly allowed.
Order pronounced in the open court on 2nd July, 2025 (SATBEER SINGH GODARA)

JUDICIAL MEMBER

Dated: 2nd July, 2025. RK/-