ITO, WARD 21(1), NEW DELHI, DELHI vs. M/S RETRO FOOTWEARS PRIVATE LIMITED, DELHI

ITA 3291/DEL/2025Status: DisposedITAT Delhi20 March 2026AY 2017-18Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)5 pages
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What did the Tribunal hold?

The Tribunal found that while the assessee's explanation regarding sales was not entirely rebutted, the source of the improved cash deposit was not fully proven. Therefore, a lump sum addition of Rs. 8 lakhs was deemed appropriate. It was also clarified that Section 115BBE applies to transactions on or after 01.04.2017, and the assessee is to be assessed under normal provisions.

What were the facts?

The assessee, engaged in footwear trading and manufacturing, deposited Rs. 1,23,97,000/- in cash during the demonetization period, claiming it was from cash sales. The Assessing Officer added this entire amount under Section 68 read with Section 115BBE due to an unexplained abnormal rise in cash in hand. The CIT(A) subsequently deleted this addition.

What were the issues?

Whether the CIT(A) erred in deleting the addition under Section 68 and 115BBE for cash deposits during demonetization, and the applicability of Section 115BBE for transactions before April 1, 2017.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE,Section 143(3),Section 143(1),Section 143(2),Section 142(1)

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

Before: SHRI SATBEER SINGH GODARA

For Appellant: Shri Pramod Kumar, CA and Shri Mukul Gupta, Adv
For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 13.01.2026Pronounced: 13.01.2026

PER AMITABH SHUKLA, AM,

This appeal filed by the Revenue is against order dated 09.04.2025 of National Faceless Appeal Centre/learned Commissioner of Income Tax, New Delhi, [hereinafter referred to as ‘ld. CIT(A)] arising out of assessment order dated 29.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 pertaining to Assessment Year 2017-18. The word ‘Act’ herein this order would mean Income Tax Act, 1961. 2. The Revenue has raised following grounds of appeal:-

1.

Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.1,23,97,000/- made on account of cash deposited during demonetisation p

The order continues below.

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