SANGEETA GUPTA,NOIDA V. ITO WARD-30(2), NEW DELHI

ITA 818/DEL/2025

AI Insights

The case involves Sangeeta Gupta, who appealed against the order of the National Faceless Appeal Centre (NFAC), which sustained the addition of Rs. 31,88,000 to her income as undisclosed income during the demonetization period. The Assessing Officer (AO) had initially added this amount, noting that the cash deposits in Gupta's bank accounts were not explained. The First Appellate Authority upheld this addition. The Tribunal, however, found that Gupta had sufficiently explained the source of Rs. 31,00,000 of the deposits, which were withdrawals from another bank account, and thus only Rs. 88,000 was added to her income. The Tribunal also addressed the applicability of section 115BBE, confirming that it applies to transactions post-01.04.2017.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314029 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: SMILE Microfinance Ltd. vs. ACIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHYAM MANOHAR SINGH
• Keywords: Condonation of delay; Income from undisclosed sources

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH “SMC’’ : NEW DELHI) BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT ITA No. 818/Del/2025 Asstt. Year : 2017-18 Sangeeta Gupta, vs. ITO, Ward 30(2), CC-2A, Crescent Court 2A, New Delhi Flat No. 301, Jaypee Greens, Near Pari Chowk Greater Noida, Uttar Pradesh (PAN: AEQPG9877H) (Appellant) (Respondent) Appellant by : None Respondent by : Shri Shyam Manohar Singh, Sr. DR. Date of Hearing 06.05.2025 Date of Pronouncement 06.05.2025 ORDER This appeal by the assessee is emanating from the order of the NFAC, Delhi in Appeal No. ITBA/NFAC/S/250/2023-24/1060287105(1) dated 30.01.2024. 2. None appeared on behalf of the assessee, despite issue of notice for hearing, hence, I am deciding the appeal exparte qua the assessee, after hearing the Ld. DR and perusing the records. 3. At the threshold, it is noted that there is a delay of 318 days in filing the appeal before the Tribunal. In this regard, assessee has filed the Application for Condonation of Delay stating therein that the delay was occurred only on account of the bonafide cause, as the counsel representing assessee before Ld. CIT(A) left the asessee without providing the copy of Ld. CIT(A) order. However, the assessee came to know of the Ld. CIT(A)’s order once the show cause notice dated 2 | P a g e 08.01.2025 for imposition of penalty was served on the assessee. Thereafter, the assessee logged in the income tax web portal (after obtaining login id and password from earlier counsel) and downloaded the order of Ld. CIT(A). Ld. DR did not controvert the aforesaid proposition. After hearing both the sides and perusing the records, I find that reasonable reason has been attributed to the assessee for filing the belated appeal, hence, I condone the delay in dispute in filing the appeal before the Tribunal. 4. Brief facts of the case are that AO made the addition of Rs.31,88,000/- by noting that assessee deposited cash in bank accounts during demonetization period from undisclosed sources, as the sources were neither explained, the onus is on the assessee’s to prove that the cash deposits, hence, AO added the same to the income of the assessee as income from undisclosed sources and the same was taxed u/s. 115BBE @ 60%. However, in appeal, Ld. First Appellate Authority sustained the addition of Rs. 31,88,000/-. Against the above, assessee appealed before the Tribunal. 5. After hearing, the Ld. DR and perusing the records, I note that it was the contention of the assessee before the lower authorities that cash deposited in the bank account have been withdrawn from the bank account maintained with State Bank of India. It is noted that assesse had made the following withdrawal from the bank account on 31.3.2016 of Rs. 21,00,000/-; Rs. 1,00,000/- and Rs. 9,00,000/- thus amounting to Rs. 31,00,000/- vide cheque no. 2956, 2958 & 2957 respectively. However, the cash was deposited by the assessee on 10.11.2016 of 3 | P a g e Rs. 1,15,000/- and on 19.11.2016 of Rs. 30,73,000/- thus, totaling to Rs. 31,88,000/-. 6. I have heard the Ld. DR and perused thee records. I have given my thoughtful consideration to the assessee’s contentions before the lower authorities and Revenue’s contention in support of the impugned addition. In view of the aforesaid factual matrix, in my considered opinion, since the source of cash deposit of Rs. 31,00,000/- out of Rs. 31,88,000/- has been suitably explained, therefore it is deemed appropriate to confirm the impugned addition of Rs. 31,88,000/- to Rs. 88,000/-. The assessee gets relief of Rs. 31,00,000/- in other words. Necessary computation shall follow as per law. 7. So far as assessee’s assessment u/s. 115 BBE of the Act is concerned, in view of Hon’ble Madras High Court in SMILE Microfinance Ltd. vs. ACIT in WP(MD) no. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue against the department that the law applies to the transaction on or after 01.04.2017 only. 8. The instant assesseee’s appeal is partly allowed in the aforesaid terms. Order pronounced in the Open Court on 06.05.2025. Sd/- (MAHAVIR SINGH) VICE PRESIDENT SRBhatnagar Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT TRUE COPY By Order, Assistant Registrar, ITAT, Delhi Bench 4 | P a g e 1. Date of dictation of Tribunal Order 06.05.25 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 06.05.25 3. Date on which the typed draft Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S. /P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement ; 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S. /P.S. on official website 8. Date on which the file goes to the Bench Clerk along with Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10 . Date on which the file goes to the Supervisor (Judicial) 11 . Date on which the file goes for Xerox 12 . Date on which the file goes for endorsement 13 . Date on which the file goes to the superintendent for checking 14 The date on which the file goes to the Assistant Registrar for signature on the tribunal order 15 Date on which the file goes to dispatch section 16 Date of Dispatch of the Order "