CHANDO DEVI JEWELLERS,DELHI V. ITO WARD 47(1), DELHI

ITA 4948/DEL/2025

AI Insights

Chando Devi Jewellers appealed against the order of the Addl./JCIT(A), Panchkula, which had confirmed the addition of Rs. 18,50,000 as unexplained cash credits under Section 68 read with Section 115BBE of the Income Tax Act, 1961. The cash deposits were made during the demonetization period. The Tribunal heard extensive arguments from both parties, with the assessee's counsel emphasizing the legitimacy of the business activities, which were accepted in subsequent assessments. However, the Tribunal found that the assessee had not adequately proven the source of the cash deposits, leading to a partial relief in the form of a reduced addition of Rs. 2,00,000. Furthermore, it was determined that the provisions of Section 115BBE applied only to transactions post-01.04.2017, thus the assessee would be assessed under the normal provisions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773723 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 13-08-2025
• Other Referred Cases: S.M.I.L.E Microfinance Limited Vs. The ACIT CC-1
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: AMIT GOEL; PRANAV YADAV
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member ITA No. 4948/Del/2025 : Asstt. Year : 2017-18 Chando Devi Jewellers, 1222, Maliwara Chandni Chowk, Delhi-110006 Vs Income Tax Officer, Ward-47(1), New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AALFC6713H Assessee by: Sh. Amit Goel, CA & Sh. Pranav Yadav, Adv. 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 Addl./JCIT(A), Panchkula’s DIN & order No. ITBA/APL/S/250/2025-26/1078361744(1) dated 10.07.2025, 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. Coming to the sole substantive issue between the parties herein, it is noticed that both the learned lower authorities have reiterated the assessee’s cash deposits during demonetization amounting to Rs.18,50,000/- as unexplained cash credits u/s 68 r.w.s. 115BBE of the Act, in assessment order dated 07.12.2019 and upheld in the lower appellate discussion. Printed from counselvise.com ITA No. 4948/Del/2025 Chando Devi Jewellers 2 4. Learned counsel’s case in this factual backdrop that the assessee all along has been carrying it’s regular business activity of jewellery wholesale and retail sales which is vehemently opposed by the department side in the course of hearing. Learned counsel further seeks to buttress the point that even in the succeeding assessment year also, the departmental authorities have accepted the assessee’s very business activity. Be that as it may, the fact however remains that neither the learned lower authorities have rejected the assessee’s corresponding books nor it has been able to successfully prove and very corresponding business vis-à-vis the cash in question. That being the case, it is deemed appropriate in the larger interest of justice that a lump sum addition of Rs.2,00,000/- only would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.16,50,000/- in other words. Necessary computation shall follow as per law. 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 on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under normal provisions only. Printed from counselvise.com ITA No. 4948/Del/2025 Chando Devi Jewellers 3 6. This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 23/09/2025. Sd/- (Satbeer Singh Godara) Judicial Member Dated: 23/09/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "