DCIT, CIRCLE-7(1), DELHI V. SUMITA SIDDHARTHA, UTTAR PRADESH

ITA 991/DEL/2025

AI Insights

The case involves appeals by the Deputy Commissioner of Income Tax, Circle 7(1), against Sumita Siddhartha concerning the assessment years 2016-17 and 2017-18. The core issue was the addition of Rs. 59.18 crores to the assessee's income for these years, based on allegations that she had collected substantial investments from 633 investors through her company, Earth Infrastructure Limited, which was later liquidated without returning the investors' money. The Assessing Officer initially made the additions for AYs 2015-16 to 2017-18 based on information from the Investigation Wing. However, the CIT (A) later deleted the additions for AYs 2016-17 and 2017-18, recognizing that the information was only relevant to AY 2015-16. The Tribunal upheld the CIT (A)'s decision, agreeing that the additions for the later years were not supported by the evidence provided.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772551 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S. GUPT
• Assessee Lawyers: SUMITA SIDDHARTHA; SELF ASSESSEE
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.990/DEL/2025 (Assessment Year: 2016-17) ITA No.991/DEL/2025 (Assessment Year: 2017-18) DCIT, Circle 7 (1), vs. Sumita Siddhartha, New Delhi. A – 23, Sector 53, Noida – 201 307 (Uttar Pradesh). (PAN : AHAPS3395P) (APPELLANT) (RESPONDENT) ASSESSEE BY : Ms. Sumita Siddhartha, Self (assessee) REVENUE BY : Ms. Amisha S. Gupt, CIT DR Date of Hearing : 07.08.2025 Date of Order : 27.08.2025 O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER : 1. The assessee has filed appeals against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short] dated 31.12.2024 for the AYs 2016-17 & 2017-18. 2. Since the issues are common and the appeals are connected, therefore, the same are heard together and being disposed off by this common order. Printed from counselvise.com 2 ITA Nos.990 & 991/DEL/2025 3. At the time of hearing, assessee herself represented her case and she submitted that the case of her was reopened by the Assessing Officer by issue of notice under section 148 of the Income-tax Act, 1961 (for short ‘the Act’) for AYs 2015-16 to 2017-18. Further she submitted that the case of the Revenue was that the assessee has collected huge investment from 633 investors and subsequently she has liquidated the company, namely, Earth Infrastructure Limited and not returned the money to the respective investors. The abovesaid information as received by the Assessing Officer through DCIT (Inv.) relating to AY 2015-16. She submitted that the Assessing Officer has initiated the proceedings for three assessment years, since, assessee is unaware of the procedure of faceless proceedings and hence not represented the case, Assessing Officer proceeded to make the addition of Rs.59.18 crores in all the three assessment years. She submitted that the ld. CIT (A) has considered the submissions of the assessee and rightly deleted the additions made by the Assessing Officer in AYs 2016-17 and 2017-18 considering the fact that information received from Investigation Wing is relating to AY 2015-16 only. Accordingly, she prayed that the appeals preferred by the Revenue may be dismissed. 4. On the other hand, ld. DR of the Revenue did not controvert the above submissions of the ld. AR of the assessee. 5. Considered the rival submissions and material placed on record. We observe that the Assessing Officer has received information from Printed from counselvise.com 3 ITA Nos.990 & 991/DEL/2025 Investigation Wing that assessee along with her husband and other office bearers of Earth Infrastructure Limited collected monies from 633 investors and subsequently, the company was liquidated. As per the allegations received by the Assessing Officer, the assessee has not returned the monies to the respective investors. Since assessee has not represented the case during assessment proceedings, the Assessing Officer proceeded to make the same addition in all the three assessment years even though the Investigation Wing forwarded the requisite information which is relating to AY 2015-16 only. Since the Assessing Officer has proceeded to make the same addition in all the three assessment years, ld. CIT (A) has rightly deleted the additions made by the Assessing Officer in AYs 2016-17 and 2017-18. Since the facts are emanating from the impugned order as well as facts brought on record by the assessee, we are not inclined to disturb the findings of the ld. CIT (A) which is accordingly upheld. 6. In the result, both the appeals filed by the Revenue are dismissed. Order pronounced in the open court on this 27th day of August, 2025. Sd/- sd/- (ANUBHAV SHARMA) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27.08.2025 TS Printed from counselvise.com 4 ITA Nos.990 & 991/DEL/2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "