MOHD SHAREEF,MORADABAD vs. ITO WARD -1(1), MORADABAD

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/250/2023-24/1059606770(1), dated 11.01.2024, in case no.
CIT(A), Moradabad/10233/2019-20, in proceedings u/s 143(3) of the Income-tax
Act, 1961, hereinafter referred to as the ‘Act’.

2
Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex parte.
2. Learned DR vehemently argues during the course of hearing that both the lower authorities have rightly treated the assessee’s cash deposit made during demonetization amounting to Rs. 36.59 lakhs as unexplained u/s 68 read with section 115BBE of the Act.
3. Faced with this situation, the tribunal sought to know the assessee’s business or profession carried out all along. It is informed that the assessee is a regular return filer and engaged in trading of zink, iron, brass metal etc. That being the case, it could very well be inferred that assessee’s cash deposits; although not satisfactorily reconciled by filing the audited results etc., are, prima facie, attributable to the cash receipts in regular business only.
4. Be that as it may, the tribunal is of the considered view in these peculiar facts that a lump sum addition of Rs. 5,00,000/- only would be just and proper with a rider that the same shall not be treated as a precedent. Ordered accordingly. The assessee gets relief of Rs. 31.59 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.

3
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. *MP*