D-ART FURNITURE SYSTEMS PRIVATE LIMITED,NEW DELHI V. DCIT CENTRAL CIRCLE-17, NEW DELHI

ITA 371/DEL/2024

AI Insights

The case involves D-Art Furniture Systems Pvt. Ltd., which appealed against the orders of the Commissioner of Income Tax (Appeals)-27, New Delhi, concerning additions made under section 68 of the Income-tax Act, 1961. The additions were related to unexplained cash credits of Rs.22,18,160 and Rs.59,60,198 for the assessment years 2006-07 and 2007-08, respectively. The Tribunal's decision to delete these additions was influenced by the Supreme Court's ruling in PCIT Vs. Abhisar Builwell P. Ltd., which clarified that for 'unabated' assessments, any addition must be based on seized or incriminating material.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771963 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2007-2008
• Other Referred Cases: PCIT Vs. Abhisar Builwell P. Ltd. (2023) 454 ITR 212 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: ANIL CHOPRA
• Keywords: Unexplained cash credit
• Section: 132; 153A; 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA Nos.370 & 371/Del/2024 Assessment Years: 2006-07 & 2007-08 D-Art Furniture Systems Pvt. Ltd., I-107A, Kirti Nagar, Moti Nagar, S.O. West Delhi, New Delhi Vs. DCIT, Central Circle-17, New Delhi PAN: AABCD6422H (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM These assessee’s twin appeals ITA No. 370 & 371/Del/2024 for assessment years 2006-07 & 2007-08 arise against the Commissioner of Income Tax (Appeals)-27 [in short, the “CIT(A)”], New Delhi’s orders, both dated 24.11.2023 passed in case nos. CIT(A), Delhi-27/10009/2005-06 and CIT(A), Delhi- 27/10010/2006-07, involving proceedings under section Assessee by Sh. Anil Chopra, CA Department by Sh. Rajesh Kumar Dhanesta, Sr. DR Date of hearing 13.08.2025 Date of pronouncement 28.08.2025 Printed from counselvise.com ITA Nos. 370 & 371/Del/2024 2 | P a g e 143(3)/147/250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’); respectively. Heard both the parties. Case file perused. 2. It emerges during the course of hearing with the able assistance coming from both the learned representatives that they have made section 68 unexplained cash credit additions of Rs.22,18,160/- and Rs.59,60,198/- in assessment orders, both dated 08.03.2022 for assessment years 2006-07 and 2007-08; respectively, as upheld in the CIT(A)’s lower appellate discussion. 3. Faced with this situation, learned CIT(DR) could hardly dispute the clinching fact emerging from the case file that the impugned assessment years 2006-07 and 2007-08 are “unabated” one since the departmental authorities had carried out section 132 search action in assessee’s case on 19.10.2010, leading to initiation of Section 153A proceedings. And that hon’ble apex court’s recent landmark decision in PCIT Vs. Abhisar Builwell P. Ltd. (2023) 454 ITR 212 (SC) has settled the law that such Printed from counselvise.com ITA Nos. 370 & 371/Del/2024 3 | P a g e an addition involving an “unabated” assessment has to be based on the seized/incriminating material only. 4. From a perusal of the assessment discussion, we find that there is not even an iota of evidence indicating that the learned Assessing Officer has made the addition in assessee’s hands based on such an incriminating material. We thus find it a fit case to delete the impugned section 68 additions of Rs.22,18,160/- and Rs.59,60,198/- for assessment years 2006-07 and 2007-08 in very terms. Ordered accordingly. 5. These assessee’s appeals ITA No. 370 & 371/Del/2024 are allowed. Order pronounced in the open court on 28th August, 2025 Sd/- Sd/- (MANISH AGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 28th August, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "