HARISH BATRA,DELHI vs. INCOME TAX OFFICER, WARD-45(1), DELHI, 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/250/2025-26/1076838833(1) dated 09.06.2025, 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.
Coming to the sole substantive issue herein, learned counsel submits that both the lower authorities have erred in law and on facts in treating the assessee’s cash deposits during demonetization of Rs.27,50,000/- as unexplained, in assessment order dated 20.12.2019 as upheld in the lower appellate discussion. Harish Batra
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4. It is in this factual backdrop that the learned counsel invites the tribunal’s attention to page 758 comprising of the assessee’s P&L account for the relevant previous year wherein he had declared total sales of Rs.11,56,63,414/- from his regular business activity carried out in the name and style of M/s Krishna Supermarche in grocery business. The Revenue could hardly dispute that the assessee’s regular books of account has been duly audited have been accepted in both the lower proceedings.
The facts however remains that the assessee could not successfully explain the impugned cash deposits by way of filing the corresponding supportive evidence for the purpose of necessary factual verification and reconciliation of the figures in question. Be that as it may, it is thus deemed appropriate in the larger interest of justice to assess the assessee’s impugned cash deposits at a lump sum
GP rate of 6% 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. Harish Batra
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6. No other ground or argument has been pressed.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 07/10/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 07/10/2025
*Subodh Kumar, Sr. PS*