Dilbag Singh Vs ITO (ITAT Chandigarh)
ITAT Chandigarh dealt with addition of ₹3.19 Lakh u/s 69 r.w.s. 115BBE out of total demonetization-period cash deposit of ₹14.19 Lakh. AO accepted agricultural income to that extent & added the balance ₹3.19 Lakh as unexplained.
CIT(A) confirmed the addition. Assessee did not appear before Tribunal. Tribunal noted that Assessee himself admitted inability to explain source of ₹3.19 Lakh; hence the addition could not be deleted. However, Tribunal held that the enhanced rate of 60% u/s 115BBE is not applicable to transactions prior to 01.04.2017, relying on the Madras High Court decision in S.M.I.L.E. Microfinance Ltd vs ACIT. Tribunal directed AO to apply normal rate of tax @30% for AY 2017-18 as the deposit period (08.11.2016–30.12.2016) fell before the amendment’s effective date. Appeal was thus partly allowed.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
1. Aforesaid appeal by assessee for Assessment Year (AY) 201819 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals), Coimbatore [CIT(A)] dated 04-03-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 11-12-2019. The registry has noted small delay of 71 days, the condonation of which has been sought by the assessee on the strength of condonation petition and affidavit. Considering the contents of the same as well as the period of delay, the delay is condoned.
