YADU SUGAR LTD.,DELHI vs. LD. AO, DELHI, NEW DELHI

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ITA 7791/DEL/2025Status: DisposedITAT Delhi02 June 2026AY 2017-183 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal acknowledged the possibility of cash turnover in the sugar mill business and that the assessee had filed relevant details. However, the assessee did not fully discharge its onus of proof. Therefore, a lumpsum addition of Rs. 5 lakhs was deemed just and proper.

What were the facts?

The assessee, M/s. Yadu Sugar Ltd., had cash deposits of Rs. 1,53,61,500/- during the demonetization period. The Assessing Officer added this amount as unexplained cash credit under Section 68 of the Income Tax Act, 1961.

What were the issues?

Whether cash deposits made during demonetization are unexplained cash credits, and the applicability of Section 115BBE to transactions prior to April 1, 2017.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 28.04.2026Pronounced: 28.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.7791/Del/2025 Assessment Year: 2017-18 M/s. Yadu Sugar Ltd., Vs. Assessing Officer, 202/47, Kalu Sarai, New Delhi Hauz Khas, Thapar Arcade, Delhi PAN: AAACY1082B (Appellant) (Respondent) Assessee by Sh. Madhav Kapur, Adv. Department by Ms. Ankush Kalra, Sr. DR

Date of hearing 28.04.2026 Date of pronouncement 28.04.2026 ORDER PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)-29 [in short, the “CIT(A)”], New Delhi’s order dated 21.09.2025 in case no. CIT(A), Delhi-9 10655/2019-20, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

ITA No.7791/Del/2025

2.

Coming to the assessee’s sole substantive ground raised herein, we notice that it seeks to reverse both the learned lower authorities’ respective findings assessing its cash deposits during demonetization period amounting to Rs.1,53,61,500/- as unexplained under section 68 of the Act; in assessment order dated 31.12.2019 as upheld in the lower appellate discussion. 3. We have given our thoughtful consideration to the assessee’s and the Revenue’s respective vehement submissions. We wish to make it clear that there has been no dispute all along that the assessee is engaged in running sugar mills wherein possibility of cash turnover in such an unorganized sector could not be altogether ruled out. And that it had all along filed all the relevant details of the business turnover during demonetization, whose credit could not be denied in entirety, although it appears to have not successfully discharged its onus of pleading and proving its explanation to the very effect. Be that as it may, we deem it appropriate in this factual backdrop that a lumpsum addition of Rs.5 lakhs in the assessee’s hands would be just and proper with a rider that the same shall not be treated as a precedent. The

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ITA No.7791/Del/2025

assessee gets relief of Rs.1,48,61,500/- in other words. Necessary computation shall follow as per law. 4. So far as assessee’s assessment under section 115BBE is concerned, we 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. No other ground or argument has been pressed before us. 5. This assessee’s appeal is partly allowed. Order pronounced in the open court on 28th April, 2026 Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 2nd June, 2026. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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