DCIT, CENTRAL CIRCLE-30, NEW DELHI V. SUMIT GUPTA, NEW DELHI

ITA 1752/DEL/2022

AI Insights

The case involves an appeal by the revenue against the decision of the Commissioner of Income Tax (Appeals)-30, New Delhi, which had deleted an addition of Rs. 3,12,50,000 in the hands of the assessee, Sumit Gupta. The addition was initially made by the Assessing Officer following a statement from Shri Dhruva Goel, who was found to have paid additional cash for shares of Cruise Properties Pvt. Ltd. However, a subsequent Tribunal decision in the case of Shri Dhruva Goel found no corroborative evidence for this cash payment, leading to the dismissal of the revenue's appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 34856 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 22-10-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 02-08-2022
• Other Referred Cases: Shri Dhruva Goel in ITA Nos. 1604 & 1648/Del/2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRITUNJAY PRASAD DWIVEDI
• Assessee Lawyers: RAKESH GUPTA
• Section: 147; 132

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 1752/Del/2022 (Assessment Year: 20106-17) DCIT, Central Circle-30, New Delhi Vs. Sumit Gupta, R-36, Greater Kailash-I, New Delhi (Appellant) (Respondent) PAN:ADHPG1305J CO No. 92/Del/2023 (In ITA No. 1752/Del/2022) (Assessment Year: 20106-17) Sumit Gupta, R-36, Greater Kailash- I, New Delhi Vs. DCIT, Central Circle-30, New Delhi (Appellant) (Respondent) PAN:ADHPG1305J Assessee by : Dr. Rakesh Gupta, Adv Shri Somil Agarwal, Adv Shri Deepesh Garg, Adv Revenue by: Shri Mritunjay Prasad Dwivedi, Sr. DR Date of Hearing 22/10/2024 Date of pronouncement 24/10/2024 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.1752/Del/2023 filed by the revenue and CO No. 92/Del/2023 filed by the assessee for AY 2016-17, arise out of the order of the Commissioner of Income Tax (Appeals)-30, New Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. 11461/2015-16 dated 30.05.2022 against the order of assessment passed u/s 147 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 16.04.2021 by the ITA No. 1752/Del/2022 CO No. 92/Del/2023 Sumit Gupta Page | 2 Assessing Officer, DCIT, Central Circle-30, New Delhi (hereinafter referred to as ‘ld. AO’). 2. Though the revenue has raised several grounds before us, the only effective issue to be decided in this appeal of the revenue is whether the ld CIT(A) was justified in deleting the addition made in the sum of Rs. 3,12,50,000/- in the hands of the assessee in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. The assessee sold 5000 shares of Cruise Properties Pvt. Ltd along with Shri Devender Kumar. Both the parties are having 50% stake in the said company. The said shares were sold by the assessee and Shri Devender Kumar to Shri Dhruva Goel for Rs. 2.25 crores. Shri Devender Goel was searched by the Income Tax Department u/s 132 of the Act on 27.07.2016 and 23.08.2016 along with other cases of Shri Kartar Singh, his family members and associates. During the course of search, a statement u/s 132(4) of the Act was recorded from Shri Dhruva Goel wherein, he had stated that he had paid total consideration of Rs. 8.50 crores for acquiring shares of Cuise Properties Pvt. Ltd from Shri Devender Kumar and Shri Sumit Gupta, out of which, a sum of Rs. 2.25 crores was paid by Cheque and Rs. 6.25 crores paid by cash. Based on this statement , the ld AO of the assessee sought to bring to tax a sum of R. 3,12,50,000/- (50% of Rs 6,25,00,000/-) in the hands of the assessee as additional consideration received by the assessee in cash for his 50% on sale of shares. This action was upheld by the ld CIT(A). Ultimately the Tribunal in the hands of Shri Dhruva Goel in ITA Nos. 1604 & 1648/Del/2020 dated 28.08.2024 had deleted the addition made in the sum of Rs. 6.25 crores as there was no corroborative evidence found during the course of search in tandem with the ITA No. 1752/Del/2022 CO No. 92/Del/2023 Sumit Gupta Page | 3 statement u/s 132(4) of the Act. Hence, the Tribunal held that no payment of Rs. 6.25 crores was paid to Shri Devender Kumar and assessee on acquisition of shares of Cruise Properties Pvt. Ltd. Since the very basis of addition that has been made in the hands of the assessee was the statement of Shri Dhruva Goel, when in the hands of Shri Dhruva Goel, there is a finding given by the Tribunal that there was no cash payment made in the sum of Rs. 6.25 crores for acquisition of shares from assessee and Shri Devender Kumar, then there will be no case for the revenue to justify an addition of the very same sum in the hands of the assessee on the very same transaction. Hence, by placing reliance on the decision of the Tribunal in the hands of Shri Dhruva Goel dated 28.08.2024 referred supra, we hold that the ld CIT(A) had rightly deleted the addition made in the hands of assessee. Accordingly, grounds raised by the revenue are dismissed. 4. In the result, the appeal of the revenue is dismissed and Cross Objection of the assessee is dismissed as infructuous. Order pronounced in the open court on 24/10/2024. -Sd/- -Sd/- (SAKTIJIT DEY) (M. BALAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 24/10/2024 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "