ARUNA SETIA,DELHI V. ITO WARD 28(4), DELHI

ITA 6807/DEL/2025

AI Insights

The case involves Aruna Setia, the appellant, contesting an addition of Rs. 11.65 lakhs made under section 69A read with section 115BBE of the Income-tax Act, 1961, by the Income Tax Officer, Ward-28(4), Delhi. The addition was initially made in the assessment order dated 09.12.2019 and upheld by the CIT(A) in an order dated 29.08.2025. The primary contention revolves around the rejection of additional evidence by the CIT(A), which the appellant argued was crucial for explaining the source of cash deposits. The Tribunal found merit in the appellant's argument and directed the CIT(A) to reconsider the additional evidence. Furthermore, regarding the application of section 115BBE, the Tribunal noted the Madras High Court's decision that this section applies only to transactions on or after 01.04.2017, directing the Assessing Officer to adjust the computation accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789578 (ITAT-DELHI)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 28-10-2025
• Other Referred Cases: SMILE Microfinance Ltd. v. ACIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Additional evidence
• Section: 143(3)

Judgement Text

"1 ITA No. 6807/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No. 6807/Del/2025 Assessment Year: 2017-18 Aruna Setia, K-30, South Extension Part-2, Andrewsganj, South Delhi-110049. PAN: DLQPS 7777 J Vs Income Tax Officer, Ward-28(4), Delhi. APPELLANT RESPONDENT Assessee represented by Shri K. Sampath, Adv. (through VC) ; and Shri V. Rajakumar, Adv. Department represented by Shri Manoj Kumar, Sr. DR Date of hearing 27.11.2025 Date of pronouncement 27.11.2025 O R D E R PER SATBEER SINGH GODARA, JM: This assessee’s appeal ITA no. 6807/Del/ /2025 for assessment year 2017-18 arises against CIT(A)/ NFAC, Delhi’s order dated 29.08.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1080180267(1), in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’. Heard both the parties. Case file perused. 2. Coming to the sole substantive issue herein, it transpires during the course of hearing that both the learned lower authorities have made section 69A read with Printed from counselvise.com 2 ITA No. 6807/Del/2025 section 115BBE addition of Rs. 11.65 lakhs in the assessee’s hands in assessment order dated 09.12.2019 and upheld in the lower appellate discussion. 3. Faced with this situation, the learned counsel invites the tribunal’s attention to the CIT(A)’s lower appellate discussion at page 11 onwards rejecting the admission of his additional evidence filed under rule 46A of the IT rules. His case therefore is that on account of various communication gaps and circumstances beyond control the assessee could not produce the same during the course of assessment proceedings. The Revenue could hardly dispute that the assessee’s additional evidence i.e. explanation regarding source of his cash deposits, is very much relevant going to the root of the matter. This tribunal therefore sees merits in the assessee’s first and foremost ground to restore the matter to the file of the first appellate authority and directs the learned CIT(A) to admit his additional evidence and get the same verified from the Assessing Officer as per law within three effective opportunities. Ordered accordingly. 4. So far as the assessee’s assessment u/s 115BBE is concerned, the revenue could hardly dispute that hon’ble Madras high court in SMILE Microfinance Ltd. v. ACIT in WP(MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue that Section 115BBE applies on transactions on or after 01.04.2017 only. I, accordingly direct the Assessing Officer to finalize the Printed from counselvise.com 3 ITA No. 6807/Del/2025 consequential computation under normal provisions than u/s 115BBE of the Act in very terms. Ordered accordingly. 5. This assessee’s appeal is allowed for statistical purposes. Order pronounced in open court on 27.11.2025. Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 28.11.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "