ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 25 DELHI, DELHI V. JBM CORPORATE SERVICES PVT LTD, DELHI

ITA 2799/DEL/2024

AI Insights

The case involves the Assistant Commissioner of Income Tax, Central Circle 25 Delhi, as the appellant, and JBM Corporate Services Pvt. Ltd., as the respondent. The appeal was against the order of the Learned Commissioner of Income Tax (Appeals)-28, which pertained to the Assessment Year 2015-16. The primary issue was the deletion of an addition on account of unexplained cash investment of Rs. 1,72,54,000 by the CIT(A). The Revenue contended that incriminating material found during a search, including a hard disk and excel sheets detailing cash payments and land registries, justified the addition. However, the CIT(A) found the explanations provided by the assessee satisfactory, leading to the deletion of the addition. The Revenue's appeal was dismissed based on procedural grounds related to the monetary limit for filing appeals.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474822 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 14-11-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 31-05-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: MADHUR AGGARWAL
• Keywords: Unexplained investment; Tax effect

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘C’: NEW DELHI) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No:- 2799/DEL/2024 (Assessment Year: 2015-16) Assistant Commissioner of Income Tax, Central Circle 25 Delhi, Delhi. Vs. JBM Corporate Services Pvt. Ltd., Delhi. APPELLANT RESPONDENT PAN No: AACCJ8401D Revenue By : Shri Dayainder Singh Sidhu, CIT(DR) Assessee By : Shri Madhur Aggarwal, Adv. Date of Hearing : 14.11.2024 Date of Pronouncement : 14.11.2024 ORDER PER SUDHIR PAREEK, JM This appeal by the Revenue is preferred against the order dated 08.03.2024 passed by the Learned Commissioner of Income Tax (Appeals)-28, (hereinafter referred to as [‘Ld. CIT(A)’]New Delhi- 110055, pertains to Assessment Year 2015-16, on the following grounds of appeal: ITA No.-2799/Del/2024 JBM Corporate Services Pvt. Ltd. Page 2 of 4 “1. Whether on facts and in circumstances of the case, Ld.CIT(A) is legally justified in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/-, without appreciating the fact that incriminating material in the form of hard disk in which details of certain properties maintained in excel sheet have been found in which details of various cash payment mentioned was found during the course of search on assessee. 2. Whether on facts and in circumstances of the case, Ld.CIT(A) is legally justified in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/-, without appreciating the fact that incriminating material in the form of excel format have been found in which details of registry of land at Daslana was found during the course of search on assessee. 3. Whether on facts and in circumstances of the case, Ld. CIT(A) is legally justified in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/--, without appreciating the fact that incriminating material in the form of excel sheet contain details viz. survey no., area of meter, name of the seller, name of the purchase company of JBM group etc. As per these details JBM Corporate Services Ltd. had purchased total 83061 sqm. Land which was registered in the month of January & February 2015. 4. Whether on facts and in circumstances of the case, Ld.CIT(A) is justified in holding that the cash transactions are made first, since cheque payments are made at the time of any agreement/contract and also to ensure safety of the amount to be received. by the seller, even when the general practice in land deals is that the cash payments are made at the time of registration of the land so as to protect the interests of both the buyer and the seller of the land and not at the time of agreement/contract. 5. Whether on facts and in circumstances of the case, Ld.CIT(A) has erred in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/-, even when the AO has expressly mentioned in the assessment order that the assessee failed to factually substantiate its claim that the assessee has not purchased land from Vedehi Synthetic Ltd and has not incurred any unaccounted investment and also that the agreement got cancelled and amount given to Vedehi Synthetic Ltd was received back.” 2. At the outset, it is noted that tax effect in this case is below the limit fixed by the CBDT for filing appeal before the ITAT. The tax effect in dispute in the captioned appeal stated to be below the enhanced monetary limit of Rs. 60 lacs, specified in the CBDT ITA No.-2799/Del/2024 JBM Corporate Services Pvt. Ltd. Page 3 of 4 Circular No. 09/2024 dated 17/09/2024, in which specifically clarified that the revised monetary limits are applicable to pending appeals also, therefore, the present appeal filed by the Revenue is not maintainable in the light of the abovecited CBDT Circular No. 09 of 2024 dated 17/09/2024. So, without going into the merits of the case, present appeal is deemed to be withdrawn. The learned DR has not referred to any material which would show that the captioned appeal is protected by any exception. So, the appeal filed by the revenue is liable to be dismissed accordingly as filing of this appeal is not in consonance with the relevant CBDT Circular. 3. Consequently, the appeal of Revenue is hereby dismissed accordingly. Order Pronounced in the Open Court on 14.11.2024 Sd/- Sd/- (PRADIP KUMAR KEDIA) (SUDHIR PAREEK) ACCOUNTNT MEMBER JUDICIAL MEMBER Dated: 14/11/2024 (Pooja) Copy forwarded to: 1. Appellant 2. Respondent ITA No.-2799/Del/2024 JBM Corporate Services Pvt. Ltd. Page 4 of 4 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation 18.11.24 Date on which the typed draft is placed before the dictating Member 18.11.24 Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order "