SUDHA BAKSHI,NEW DELHI vs. ITO WARD 30(3), DELHI

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ITA 4912/DEL/2025Status: DisposedITAT Delhi07 October 2025AY 2017-18Bench: Sh. Satbeer Singh Godara (Judicial Member)3 pages
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What did the Tribunal hold?

The Tribunal noted that the assessee and her mother were over 70 years old, and as per CBDT circular, the exemption limit from verification was Rs. 5,00,000/-. Considering this, a lump sum addition of Rs. 1,00,000/- was deemed appropriate.

What were the facts?

The assessee appealed against an order that treated cash deposits made during demonetization as unexplained. The lower authorities had restricted the addition to Rs. 8,00,000/-.

What were the issues?

Whether the addition for unexplained cash deposits during demonetization is justified, considering the assessee's age and relevant CBDT circulars? Application of Section 115BBE for transactions prior to 01.04.2017.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

For Respondent: Ms. Ambika Agarwal, Sr. DR
Hearing: 07.10.2025Pronounced: 07.10.2025

Asstt. Year : 2017-18 Ms. Sudha Bakshi, Vs Income Tax Officer, 4163, Sector-D, Pocket-4, Vasant Ward-30(3), Kunj, New Delhi-110070 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. BJVPB6478A Assessee by: Sh. Satish Kumar, CA Revenue by : Ms. Ambika Agarwal, Sr. DR Date of Hearing: 07.10.2025 Date of Pronouncement: 07.10.2025 ORDER This assessee’s appeal for Assessment Year 2017-18, arises against the Addl./JCIT(A)-3, Chennai’s DIN & order No. ITBA/APL/S/250/2025-26/1077021666(1) dated 13.06.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It transpires during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authorities’ action treating her cash deposits during demonetization of Rs.10,00,000/- as unexplained, in assessment order dated 09.12.2019 which has been restricted to Rs.8,00,000/- in the lower appellate discussion.

Sudha Bakshi 4. That being the case, learned counsel invites the tribunal’s attention to page 37 in the assessee’s paper book indicating her mother Smt. Pushpa Rani who have expired on 29.04.2016. It is made clear that there is no dispute that both the assessee and her mother are stated to be above the age of 70 years in the relevant previous year. Learned counsel in this backdrop further quotes the CBDT’s landmark circular No. 3/2017 wherein para 1.1 of “sole specific general verification guidelines” made it clear that in case of taxpayers over and above 70 years of age, the limit of exemption from verification was Rs.5,00,000/- per person. This clinching fact has gone un- rebutted from the Revenue side. Be that as it may, it is further not the assessee’s case that she had successfully explained the cash in hand of her mother all along before learned lower authorities. It is thus deemed appropriate in the larger interest of justice that a lump sum addition of Rs.1,00,000/- only in the given facts would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.7,00,000/- in other words.

5.

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

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