HARSHEEN KAUR KOHLI,NEW DELHI vs. INCOME TAX OFFICER, WARD 70(4), DELHI, DELHI

Heard both the parties at length. Case file perused.

It transpires during the course of hearing that both the learned lower authorities have treated the assessee’s cash deposits during demonetization amounting to Rs.11,50,000/- as unexplained followed by assessment thereof u/s 115BBE of the Act. Harsheen Kaur Kohli 2 4. Faced with this situation, learned counsel has invited the tribunal’s attention to page 55 in assessee’s paper book indicating her to have received Rs.10,00,000/- from Kokli Autocomp on 30.12.2015 followed by withdrawals thereof of Rs.5,00,000/- each on the same day and 31.12.20215; respectively. Learned counsel further refers to the assessee’s bank statement at page 58 as well that it was these withdrawals coupled with her past savings which formed the source of the cash deposits of Rs.11,50,000/- made during demonetization. The Revenue on the other hand strongly supports the impugned addition made in the assessee’s hands.

I have given my thoughtful consideration to the foregoing vehement rival submissions and see no reason to accept either party’s stand in entirety. This is for the precise reason that neither the assessee has been able to plead and prove herself to have retained the entire cash withdrawals of Rs.10,00,000/- for almost one full calendar year nor the department could be allowed to simply brush aside her explanation herein. Be that as it may, it is deemed appropriate in the larger interest of justice to restrict the impugned addition of Rs.11,50,000/- to that a lump sum figure of Rs.1,00,000/- only with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.10,50,000/-. Harsheen Kaur Kohli 3 6. It is further made clear before parting that the learned lower authorities action assessing the assessee u/s 115BBE is concerned, hon’ble Madras high court in SMILE Microfinance Ltd. Vs. ACIT, W.P. (MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue against the department that the law applies to the transaction on or after 01.04.2017 only. Necessary computation shall follow as per law.

This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 22/04/2025. (Satbeer Singh Godara)