AMAR PAL SINGH,DEHRADUN vs. ITO WARD-1(1)(1),DEHRADUN, DEHRADUN

PER SATBEER SINGH GODARA, JM: This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 1, Surat’s order dated 09.03.2026 having DIN and order no. ITBA/APL/S/250/2025-26/1087043476(1), involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

ITA No.139/DDN/2026

Heard both the parties. Case file perused. 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.11,50,000/- and Rs.4,000/-; aggregating to Rs.11,54,000/- as unexplained under section 69A of the Act; in assessment order dated 26.12.2019 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 the business of trading of building material, wherein possibility of cash turnover in such an unorganized sector could not be altogether ruled out. And that he had all along filed all the relevant details of the business turnover during demonetization, whose credit could not be denied in entirety, although he appears to have not successfully discharged his onus of pleading and proving his explanation to the very effect. Be that as it may, we deem it appropriate in this factual backdrop that a lumpsum addition of Rs.1 lakh in the assessee’s hands would be

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ITA No.139/DDN/2026

just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.10,54,000/- 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 5th June, 2026 Sd/- Sd/- (MANISH AGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 5th 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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