DARPAN SHARMA,DEHRADUN vs. ITO TDS INTNL TAXATION, DEHRADUN

PER SATBEER SINGH GODARA, JM: This assessee’s appeal for assessment year 2017-18 arises against the Commissioner of Income Tax (Appeals) [in short, the “CIT(A)”], Noida’s -2 order dated 28.10.2025 having DIN and order no. ITBA/APL/S/250/2025-26/1082064099(1), involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

ITA No.276/DDN/2025

Heard both the parties. Case file perused. 2. Coming to the assessee’s sole substantive ground raised herein, we notice that he seeks to reverse both the learned lower authorities’ respective findings assessing its cash deposits during demonetization period amounting to Rs.13,99,000/- as unexplained under section 69A of the Act; in assessment order dated 16.12.2019 as upheld in the lower appellate discussion. 3. Learned counsel vehemently argues that the assessed had withdrawn Rs.18 lakhs from his NRE bank account maintained with Standard Chartered Bank for purchase of a house property but the same could not be utilized fully and the remaining amount of Rs.13,99,000/- was deposited in his bank account. However, the assessee could not successfully prove the aforesaid facts to the entire satisfaction of both the lower authorities. 6. Be that as it may, this tribunal sees only a part merit in the assessee’s case going by his previous withdrawals and his impugned cash deposits. It is thus deemed appropriate in the larger interest of justice that a lumpsum addition of Rs.1 lakh in the hands of the assessee is just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of

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ITA No.276/DDN/2025

Rs.12.99 lakhs in other words. Necessary computation shall follow as per law. 7. 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. 8. This assessee’s appeal is partly allowed. Order pronounced in the open court on 29th June, 2026 Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29th 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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