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Facts
The assessee, a NBFC, received Rs. 25,27,000/- in cash as EMI from customers during demonetization. The lower authorities treated these receipts as unexplained cash credits under Section 68 r.w.s. 115BBE of the Income Tax Act.
Held
The Tribunal held that since the cash receipts were duly credited to the accounts of the corresponding customers and this was not rebutted by the department, they could not be treated as unexplained. The Tribunal followed a previous decision in Shrijeet Finance (P) Ltd. Vs. ACIT.
Key Issues
Whether cash receipts of EMI from customers, duly credited to their accounts, can be treated as unexplained cash credits under Section 68 r.w.s. 115BBE of the Income Tax Act.
Sections Cited
143(3), 68, 115BBE
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2017-18 Vivek Motor Finance Ltd., Vs Income Tax Officer, 169/11, Abulane, Ward-1(2)(4), Meerut, Uttar Pradesh-250001 Meerut, U.P.-250001 (APPELLANT) (RESPONDENT) PAN No. AAACV6067H Assessee by: Sh. Baldev Raj, CA & Sh. Manish Upneja, CA Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 23.09.2025 Date of Pronouncement: 23.09.2025 ORDER This assessee’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1077741954(1) dated 24.06.2025, 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.
It transpires during the course of hearing that both the learned lower authorities have treated the assessee’s/NBFC’s receipts of EMI from it’s corresponding customers amounting to Rs.25,27,000/- in cash during demonetization, as unexplained u/s 68 r.w.s. 115BBE of the Act, in assessment order dated 19.12.2019 and upheld in the lower appellate discussion.
Vivek Motor Finance Ltd. 4. It is in this factual backdrop that the assessee vehemently contends that given the fact that the impugned cash has been credited as EMI of the corresponding customers, the same could not have been treated as unexplained cash credits. The Revenue on the other hand vehemently submits that it was the assessee’s onus only to plead and prove all the relevant facts to the entire satisfaction of both the learned lower authorities.
Be that as it may, the facts remains that the assessee/NBFC has duly credited the impugned cash receipts in the accounts of it’s corresponding customers which has gone un-rebutted from the department side. This tribunal’s recent decision in Shrijeet Finance (P) Ltd. Vs. ACIT (2024) 162 taxmann.com 243 (Pune) has already settled the instant issue in the assessee’s favour that such receipts credited in the corresponding customers’ accounts could not be treated as unexplained u/s 68 of the Act. I accordingly find no reason to sustain the impugned addition which is directed to be deleted therefore in very terms.