VARTUL SHARMA,GHAZIABAD vs. ITO WARD 3(2), NAJIBABAD

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/250/2023-24/1060955232(1), dated 15.02.2024, in case no.
CIT(A), Moradabad/10417/2019-20, 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. Coming to the assessee’s sole substantive grievance raised in the instant appeal seeking to reverse both the learned lower authorities’ actions treating cash deposits of Rs. 10,73,500/- during demonetization, learned counsel has filed copy of his bank statement indicating withdrawals of Rs. 8 lakhs each on 5th & 6th
October, 2016, respectively.
3. Faced with this situation, the tribunal is of the considered view that although the assessee has not reconciled the corresponding cash withdrawals vis a vis cash deposits in question to the entire satisfaction of the learned lower authorities, it is deemed appropriate in the larger interest of justice to conclude that he has indeed substantially explained the same before the tribunal. That being the case, it is deemed appropriate to restrict the impugned addition of Rs. 10,73,500/- to a lump sum amount of Rs. 1 lakh only with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs. 9,73,500/- in other words.
4. 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.
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 3
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*