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Facts
The assessee appealed against an addition of Rs. 20,07,000/- to his income for Assessment Year 2017-18, made on account of cash deposits, which the assessee claimed were regular business receipts duly declared in audited books. The addition was initially made during assessment proceedings under Section 143(3) and upheld by the lower appellate authority.
Held
The Tribunal partly allowed the appeal, reducing the cash deposit addition from Rs. 20,07,000/- to a lump sum of Rs. 2,07,000/-, thereby granting relief of Rs. 18,00,000/- to the assessee. It was also clarified that the provisions of Section 115BBE would apply to transactions only on or after April 1, 2017, citing relevant case law.
Key Issues
1. Correctness of the cash deposit addition of Rs. 20,07,000/-. 2. Applicability of Section 115BBE for transactions occurring before April 1, 2017.
Sections Cited
Section 143(3) of the Income Tax Act, 1961, Section 115BBE of the Income Tax Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
ORDER This assessee’s appeal for Assessment Year 2017-18, arises against the order of CIT(A)/NFAC, Delhi dated 12.01.2024 in DIN & order No. ITBA/NFAC/S/250/2023- 24/1059671073(1), in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
Learned counsel fairly submits at the outset that the assessee does not wish to press his all legal grounds raised in the instant appeal. Rejected accordingly.
Next comes the second substantive issue between the parties qua correctness of the impugned cash deposits addition of Rs.20,07,000/- made in the course of assessment framed on 18.12.2019 and upheld in the lower appellate discussion. The assessee’s case all along is that all these cash deposits in fact Devender Kumar Garg are in the nature of his regular business receipt duly declared in the audited books of account and therefore, the same ought to be treated as unexplained cash credit. This clinching aspect has gone un-rebutted from the Revenue side. Be that as it may, the tribunal is of the considered view in these peculiar facts, a lump sum addition of Rs.2,07,000/- out of Rs.20,07,000/- herein would be just and proper with a rider that the same shall not be as a precedent.
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 settled the issue against the department that the impugned statutory provisions would come into effect on the transaction done on or after 01.04.2017. The assessee gets relief of Rs.18,00,000/- in other words. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 26/12/2024.