B D R SEWING NOTIONS PVT. LTD.,,DELHI vs. ITO, WARD-4(1), 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/250/2023-24/1062671932(1) dated
15.03.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short
“the Act”).
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
Learned departmental representative vehemently argues during the course of hearing that both the lower authorities herein have rightly treated the assessee’s cash deposits during demonetization amounting to Rs.32,00,000/- as unexplained u/s 68 r.w.s. 115BBE of the Act.
It is noticed in this factual backdrop that the assessee herein had already declared turnover of Rs.3,03,07,566/- in B D R Sewing Notions Pvt. Ltd.
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regular business followed by it’s gross total income amounting to Rs.9,66,349/- which is not in dispute as per assessment order itself. That being the case, the prima facie inference which arises is that the assessee’s impugned cash deposits although not satisfactorily proved in both the lower proceedings, represent it’s regular business receipts only and therefore, the learned lower authorities action to treat the same as unexplained in entirety is not legally sustainable. The facts also remains that the assessee has failed to plead and prove all the relevant facts proving the direct nexus between it’s impugned cash deposits vis-à-vis business receipt so as to discharge his onus u/s 68 of the Act. Be that as it may, the tribunal is of the considered view in this backdrop a lump sum addition of Rs.5,00,000/- only in the given facts would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.27,00,000/- in other words.
So far as the assessee’s assessment u/s 115BBE is concerned, case law 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. Learned Assessing Officer is accordingly directed to assess the assessee under normal provisions only. Necessary computation shall follow as per law. B D R Sewing Notions Pvt. Ltd.
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6. This assessee’s appeal is partly allowed in above terms.
Order Pronounced in the Open Court on 02/01/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 02/01/2025
*Subodh Kumar, Sr. PS*