GAURAV JAIN,DELHI vs. INCOME TAX OFFICER, WARD 58(8), 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/250/2025-26/1080879089(1) dated 18.09.2025, 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.
It emerges during the course of hearing that the assessee/appellant herein is aggrieved against both the learned lower authorities’ action treating his cash deposits during demonetization amounting to Rs.29,22,000/- as unexplained cash credits u/s 68 r.w.s. 115BBE of the Act, in assessment order dated 25.12.2019 as upheld in the lower appellate discussion. Gaurav Jain
2
4. That being the case, the Revenue could hardly dispute that this assessee is a wholesaler and retailer in hosiery/fabric trading business wherein possibility of his cash sales in such an unorganized sector could not be altogether denied although he has fails to plead and prove all the relevant facts before both the learned lower authorities. It is thus deemed appropriate in the larger interest of justice that a lump sum GP estimation @
5% qua the assessee’s cash deposits of Rs.29,22,000/- would be just and proper with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law.
So far as assessee’s assessment under Section 115BBE is concerned, I quote S.M.I.L.E Microfinance Limited Vs. The ACIT CC-1 in W.P.(MD) No.2078 of 2020 & W.M.P. (MD) No. 1742 of 2020 held that the said provision applied for transactions done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under normal provisions only.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 23/12/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 23/12/2025
*Subodh Kumar, Sr. PS*