Dinesh Chand Vs ITO (ITAT Dehradun)
Poplar Tree Sale Accepted, 115BBE Not Applicable – ITAT Dehradun Grants Partial Relief on Demonetisation Deposits
Assessee had deposited ₹35 lakh in cash during the demonetisation period, which AO treated as unexplained money u/s 69A since no return or explanation was filed. CIT(A) partly accepted Assessee’s explanation and confirmed addition of ₹22 lakh.
Before ITAT, Assessee produced a certificate from Revenue Authorities showing existence & sale of Poplar Trees grown on family land and claimed ₹15 lakh from such sale. He also explained ₹3.15 lakh as received from his 65-year-old mother’s savings and ₹4.85 lakh as loans from relatives.
Tribunal found the sale of Poplar Trees credible & exempt, accepting ₹15 lakh as explained. It also allowed an additional ₹1 lakh out of the mother’s savings, while sustaining ₹1.15 lakh as unexplained. However, loans of ₹4.85 lakh were rejected for lack of identity and creditworthiness proof.
Further, relying on SMILE Microfinance Ltd. (Mad HC, 2024), ITAT held that section 115BBE applies prospectively from 01.04.2017, hence tax must be levied at normal rates. It also upheld initiation of penalty u/s 271D for cash loans above ₹20,000.
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
The present appeal is filed by the assessee against the order dated 14.11.2023 by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld.CIT(A)”] in Appeal No. CIT(A), Dehradun/10338/2019-20 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 22.10.2019 passed u/s 144 of the Act pertaining to assessment year 2017-18.
