M/S. RANA IRON & POWER LTD.,,MUZAFFARNAGAR vs. ADDL. CIT, MUZAFFARNAGAR

Heard both the parties at length. Case file perused.

The assessee’s sole substantive ground canvassed in the instant appeal challenges both the learned lower authorities’ respective findings treating his cash deposits during demonetization amounting to Rs.30.23 lacs, as unexplained under Section 69A r.w.s. 115 BBE of the Act, in assessment order dated 08.12.2019 as upheld in the lower appellate discussion.

It is next noticed from the perusal of the case records as well as in light of valuable assistance coming from both the parties that the assessee is stated to be engaged in electronic components’ retail sale supply business in Delhi as per his duly audited book results. He has further declared these impugned cash deposits as part of business turnover as well. The Revenue could hardly dispute that assessee’s above detailed evidence filed in the paper book could not be simply brushed aside in entirety.

Faced with the situation, it is deemed appropriate in the larger interest of justice that a lump sum addition of Rs.2

So far as assessee’s assessment under Section 115BBE is concerned, I 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.

This assessee’s appeal is partly allowed.