RITESH VERMA,DELHI V. ASSESSING OFFICE, DELHI

ITA 6667/DEL/2025

AI Insights

The case involves Ritesh Verma, the appellant, who contested the assessment of unexplained cash deposits amounting to Rs. 31.48 lakhs during the demonetization period, which were treated under section 115BBE of the Income-tax Act by the lower authorities. The Tribunal acknowledged the regular business activities of the assessee in the jewellery sector but noted that the deposits were not specifically reconciled or verified to the satisfaction of the lower authorities. The Tribunal decided to add the deposits at a reduced rate of 8% and directed that the assessment should not be under section 115BBE, referencing a relevant decision by the Madras High Court.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789570 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 22-10-2025
• Other Referred Cases: SMILE Microfinance Ltd. v. ACIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

"1 ITA No. 6667/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No. 6667/Del/2025 Assessment Year: 2017-18 Ritesh Verma, 245A, New Layalpur Colony, Chander Nagar, Delhi-110051. PAN: AEHPV 6130 M Vs Assessing Officer, Delhi. APPELLANT RESPONDENT Assessee represented by Shri Manoj Kumar, CA 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. 6667/Del/ /2025 for assessment year 2017-18 arises against CIT(A)/ NFAC, Delhi’s order dated 27.08.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1080055424(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. It transpires during the course of hearing with the able assistance of both the parties that the assessee/appellant is aggrieved against the learned lower authorities’ action treating his cash deposits of Rs. 31.48 lakhs during Printed from counselvise.com 2 ITA No. 6667/Del/2025 demonetization as unexplained and liable to be assessed u/s 115 BBE of the Act in assessment order dated 06.12.2019, as upheld in the lower appellate proceedings. 3. I have given my thoughtful consideration to the assessee and the Revenue’s respective vehement submissions against and in support of the impugned addition. A perusal of the case file indicates that assessee’s regular business activities in jewellery sector per se is not in doubt in principle. That being the case, the reasonable inference which could prima facie be drawn in the given facts is that the impugned cash deposits are his regular business sale although not specifically reconciled or verified to the entire satisfaction of the learned lower authorities. That being the situation, it is deemed appropriate in the larger interest of justice that assessee’s impugned cash deposits deserve to be added only @ 8% representing his element herein with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law. 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. 6667/Del/2025 consequential computation under normal provisions than u/s 115BBE of the Act in very terms. Ordered accordingly. No other ground or argument has been pressed before us. 5. This assessee’s appeal is partly allowed. 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 "