AMARJEET SINGH HOUSE NO. 94, BILLANWALI LABANA SOLAN, HIMACHAL PRADESH,HIMACHAL PRADESH V. THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 C.R BUILDING HIMALAYA MARG, SECTOR 17-E, CHANDIGARH , CHANDIGARH

ITA 398/CHANDI/2024

AI Insights

The case revolves around an appeal by Shri Amarjit Singh against the order of the Commissioner of Income Tax (CIT) under Section 263 of the Income Tax Act, 1961, concerning the assessment year 2018-19. The CIT had taken cognizance because the Assessing Officer did not apply the tax rate of 60% on an addition of Rs.3,34,62,664 as unexplained income. However, this addition was later deleted by the CIT(A), and the Tribunal upheld this deletion, dismissing the Department's appeal. The Tribunal in this case concluded that since the addition was deleted, the application of the higher tax rate was inappropriate, leading to the quashing of the CIT's order under Section 263.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35563 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT SHARMA
• Assessee Lawyers: SUDHIR SEHGAL
• Section: 263; 69A

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 398/CHD/2024 नधा\u0011रण वष\u0011 / Assessment Year: 2018-19 Shri Amarjit Singh, House No.94, Billanwali Labana Solan (HP). Vs The PCIT-1, C.R.Building, Himalaya Marg, Sector 17-E, Chandigarh. \u0016थायी लेखा सं./PAN NO: BKQPS7181H अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : Shri Sudhir Sehgal, Advocate Revenue by : Shri Rohit Sharma,CIT, DR Date of Hearing : 07.01.2025 Date of Pronouncement : 08.01.2025 HYBRID HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal against the order of ld. Commissioner of Income Tax [in short ‘the CIT’] dated 23.03.2024 passed under Section 263 of the Income Tax Act, 1961 in assessment year 2018-19. 2. It emerges out from the record that Assessing Officer has made an addition of Rs.3,34,62,664/- under Section 69A ITA No.398/CHD/2024 A.Y.2018-19 2 as unexplained income. The AO did not charge the tax @ 60% as provided under Section 115BBE, therefore, ld. CIT took cognizance under Section 263 of the Income Tax Act. The assessee has pointed out that the addition made by the AO was challenged before the ld. CIT(A) who has deleted the addition. The Department came up in appeal before the Tribunal vide ITA No.4/CHD/2024. This appeal has been dismissed by the Tribunal vide order dated 08.08.2024. Copy of the Tribunal’s order has been placed on the record. Thus, the very foundation to charge the assessee with tax has already been eliminated. 3. With the assistance of ld. Representative, we have gone through the record carefully. The dispute in the impugned order is whether a normal rate of tax @ 30%, or under Section 115BBE had to be charged @ 60%. The rate of tax could be available if there is any addition, once the addition stands deleted by the CIT(A) and upheld by the ITAT, therefore, there cannot be any cognizance of application of rate of tax on such item. The ld. CIT(A) ought to have taken cognizance of this fact when it was brought to his notice, but he ITA No.398/CHD/2024 A.Y.2018-19 3 rejected this plea on the ground that the Department has not accepted the order of the CIT(A) and it is exploring further appeal before ITAT, but now the deletion of addition stands confirmed even at the end of the ITAT. Therefore, we are of the view that no action under Section 263 of the Act deserves to be taken against the assessee. We allow this appeal of the assessee and quash the impugned order passed under Section 263 of the Act. 4. In the result, appeal is allowed. Order pronounced on 08.01.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "