GURCHARAN KAUR SAHNI,DELHI vs. ITO, NEW DELHI

PER SATBEER SINGH GODARA, JUDICIAL MEMBER: This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)-9, Mumbai’s order dated 05.01.02026 having DIN and order no. ITBA/APL/S/250/2025- 26/1084437047(1), 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. 2. For the reasons stated in the assessee’s condonation averments, delay of 20 days in filing of the instant appeal is condoned in the larger interest of justice. 3. 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 his cash deposits during demonetization period i.e. from 09.11.2016 to 31.12.2016 amounting to Rs.13,35,000/- as unexplained under section 69A of the Act; in assessment order dated 17.12.2019 as upheld in the lower appellate discussion. 4. We have given our thoughtful consideration to the assessee’s and the Revenue’s respective vehement submissions. The assessee claims that the cash deposits were made out of opening cash in hand amounting to Rs.18,69,322/- as on 01.04.2016. Supporting his claim, he has filed cash book, bank statements and all the relevant details of cash deposits during demonetization, which 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 thus deem it appropriate in this factual backdrop that a lumpsum addition of Rs. 1.5 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 assessee gets relief of Rs.11,85,000/- in other words. Necessary computation shall follow as per law. 5. 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. 6. This assessee’s appeal is partly allowed. Order pronounced in the open court on 2nd September, 2026 Sd/- Sd/- SANJAY AWASTHI SATBEER SINGH GODARA ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi Dated: 15th October, 2026 RK/- Copy to: GURCHARAN KAUR SAHNI ITO W-134 GREATER KAILASH-1 NEW WARD 30(4), DELHI, 110002 DELHI 110048, DELHI, NEW DELHI- NEW DELHI-110002, DELHI 110048, DELHI 1 2 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE