CHITAR PAL,GURGAON vs. ITO,WARD-1(3), GURGAON

PER SATBEER SINGH GODARA, JM:

This assessee’s appeal for assessment year 2017-18 arises against National
Faceless
Appeal
Centre
(NFAC),
Delhi’s
DIN and Order no.
ITBA/NFAC/S/250/2023-24/1057229767(1), dated 19.10.2023, in case no.
CIT(A), Gurgaon-1/11251/ 2019-20, in proceedings u/s 143(3) of the Income-tax
Act, 1961, hereinafter referred to as the ‘Act’.

Heard both the parties. Case file perused.

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2. It emerges during the course of hearing that both the learned lower authorities have added the assessee’s cash deposits of Rs. 20,00,000/- (Rs. 10 lakhs each before demonetization), as unexplained, during the course of assessment framed on 7.12.2019 and upheld in the lower appellate proceedings.
3. I have given my thoughtful consideration to the assessee’s and Revenue’s vehement rival contentions. Learned counsel invites the tribunal’s attention to the assessee’s cash flow statement at page 1 onwards indicating his cash balance as on 1.4.2016 at Rs. 18.72 lakhs as against cash deposit of Rs. 20 lakhs.
4. Be that as it may the tribunal is of the considered view that it is too much as unconvincing proposition to conclude that the assessee had not used his cash balance up to the date of impugned deposits. Be that as it may, the fact also remains that credit of the above cash in hand also could not altogether be denied.
That being the case, it is deemed appropriate in the larger interest of justice that a lump sum addition of Rs. 6 lakhs 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. 16 lakhs in other words. Necessary computation shall follow as per law.
5. So far as assessee’s assessment u/s 115BBE is concerned, as per hon’ble
Madras high court in Smile Micro Finance Co. Ltd. v. ACIT [WP(MD) no.

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2078/2020 & 1742/2020 dated 19.11.2024], section 115BBE of the Act is applicable only from 01.04.2017, whereas the impugned assessment year in the instant appeal is 2017-18. The assessee shall accordingly be assessed under the normal provisions.
6. This assessee’s appeal is partly allowed in above terms.
Order pronounced in open court on 30.01.2025. (SATBEER SINGH GODARA)

JUDICIAL MEMBER
*MP*