Loading judgment…
Facts
The assessee, Suman Lata Lamba, is appealing an order arising from assessment year 2017-18. The lower authorities made an addition of Rs. 34,37,889/- for unexplained cash credit in the hands of the assessee, representing cash deposits during demonetization.
Held
The Tribunal noted that while the assessee's business activity was not disputed, she failed to adequately prove the source of the impugned cash deposits as realization from sundry debtors. For justice, a lump sum addition of Rs. 1,00,000/- was deemed appropriate, without setting a precedent.
Key Issues
Whether the cash deposits made during demonetization are unexplained cash credits and if Section 115BBE is applicable.
Sections Cited
68, 143(3), 115BBE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
ORDER This assessee’s appeal for Assessment Year 2017-18 arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1081856424(1) dated 17.10.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It is noticed at the outset with the able assistance coming from both the parties that the learned lower authorities have made section 68 unexplained cash credit addition of Rs.34,37,889/- in the assessee’s hands which represents her cash deposits during demonetization, in assessment order dated 31.12.2019 as upheld in the lower appellate discussion.
Suman Lata Lamba 4. Learned counsel vehemently submits in this factual backdrop that the assessee’s regular business activity i.e. an Indian Oil Corporation dealer running a petrol pump, has nowhere been disputed in both the lower proceedings. And also that her stand all along has attributed to the source of the impugned cash deposits to realization of varying sums against outstanding sundry debtor as well. The facts however remains that the assessee has not been able to plead and prove all the foregoing facts to the entire satisfaction of both the learned lower authorities for the purpose of reconciliation and verification of her sundry debtors vis-à-vis cash deposits. It is thus appropriate in the larger interest of justice that a lump sum addition of Rs.1,00,000/- only would be just and proper with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law.
So far as assessee’s assessment under Section 115BBE is concerned, we quote S.M.I.L.E Microfinance Limited Vs. The ACIT CC-1 in W.P.(MD) No.2078 of 2020 & W.M.P. (MD) No. 1742 of 2020 held that the said provision applied for transactions done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under normal provisions only.