COSMO PRINT SOLUTION PVT LTD,DELHI V. ITO WARD 6(3), DELHI

ITA 5809/DEL/2025

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The case involves Cosmo Print Solutions Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which had treated the company's cash deposits during demonetization amounting to Rs. 44.48 lakhs as unexplained. The primary legal contention was whether these deposits should be assessed under the higher rate provisions of section 115BBE of the Income-tax Act, 1961. The Tribunal considered the evidence presented, including the company's cash flow statements, and found that while the company had not satisfactorily discharged its onus of proof, a substantial reduction in the addition was warranted. The Tribunal also referenced a relevant case to determine the applicability of section 115BBE, concluding that the normal provisions should apply as the transactions in question occurred before the effective date of the amendment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789664 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 19-09-2025
• Other Referred Cases: S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: LALITHA KRISHNAMURTHY
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.5809/Del/2025 Assessment Year: 2017-18 Cosmo Print Solutions Pvt. Ltd., 1/5505, Shivaji Park Extension, Shahdara, Delhi -110032 Vs. Income Tax Officer, Ward-6(3), New Delhi PAN: AAACC3895N (Appellant) (Respondent) ORDER This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1079335969(1), dated 06.08.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused. 2. It transpires during the course of hearing with the able assistance coming from both the parties that the learned lower Assessee by Ms. Lalitha Krishna Murthy, CA Department by Sh. Manoj Kumar, Sr. DR Date of hearing 24.11.2025 Date of pronouncement 24.11.2025 Printed from counselvise.com ITA No.5809/Del./2025 2 | P a g e authorities have treated the assessee’s cash deposits during demonization amounting to Rs.44.48 lakhs as unexplained, and, therefore, liable to be assessed at the higher rate under section 115BBE of the Act, in assessment order dated 26.12.2019 and upheld in the lower appellate discussion. 3. I have given my thoughtful consideration to the assessee’s and the Revenue’s respective vehement submissions. There is hardly any dispute between the parties that not only the assessee has proved itself as carrying printing business but also it had all along submitted its cash flow statement indicating cash balance amounting to Rs.62,96,399/- as on 1st November, 2016. It is made clear that although the assessee had filed all of its relevant evidence, it appears to have not satisfactorily discharged its onus in proving the same either in assessment or in the lower appellate discussion. Be that as it may, the tribunal is of the considered view that possibility of such cash withdrawals as well as cash sales in the regular business activity could not be simply brushed aside. It is thus deemed appropriate in the larger interest of justice that a lumpsum addition of Rs. 2 lakhs only in the given facts would be suffice in the assessee’s case with a rider that the same shall not Printed from counselvise.com ITA No.5809/Del./2025 3 | P a g e be treated as a precedent. The assessee gets relief of Rs.42.48 lakhs in other words. Necessary computation shall follow as per law. 4. So far as assessee’s assessment under section 115BBE is concerned, I quote S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) that the impugned statutory provision would come into effect on the transaction done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under the normal provision as per law. 5. This assessee’s appeal is partly allowed. Order pronounced in the open court on 24th November, 2025 Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 24th November, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "