NIRVANA TECHNOBUILDS PRIVATE LIMITED,DELHI vs. ITO,WARD-15(3), NEW DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2023-24/1060715824(1) dated
09.02.2024, in proceedings u/s 143(3) r.w.s. 144 of the Income Tax Act,
1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It transpires during the course of hearing that both the learned lower authorities have added the assessee’s cash deposits (during demonetization) of Rs.14,57,500/- along with all the credit entries appearing in the bank statement; totaling to Rs.3,62,29,250/- @ 3%, in the course of assessment framed on 31.07.2019, as upheld in the lower appellate discussion. Nirvana Technobuilds Pvt. Ltd.
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4. A perusal of the case file indicates that the assessee had withdrawn cash of Rs.26,52,000/- between 09.09.2016 to 08.11.2016 and therefore, the necessary presumption in these peculiar facts is that the same prima facie represent source of the cash deposits amounting to Rs.14,57,500/- forming subject matter of adjudication. The facts also remains that the assessee has not filed it’s detailed cash flow statement as well. Faced with this situation, it deemed appropriate in the larger interest of justice to affirm the impugned addition to a lump sum figure of Rs.2,00,000/- only with a rider that the same shall not be treated as a precedent. So far as the remaining addition of 3%
of commission charges is concerned on the entire credits, the tribunal of the considered view that once the department has accepted the main transaction itself as business income, the same cannot be assessed on mere estimation basis u/s 68
thereby rejecting the audited book result. Deleted accordingly.
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 than in A.Y. 2017-18. Learned Assessing Officer is accordingly directed to assess the assessee under normal provisions only. Nirvana Technobuilds Pvt. Ltd.
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5. This assessee’s appeal is partly allowed.
Order Pronounced in the Open Court on 02/01/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 02/01/2025
*Subodh Kumar, Sr. PS*