GURDEEP SINGH,DELHI V. MANOJ KUMAR ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -31, NEW DELHI

ITA 5306/DEL/2025

AI Insights

The case involves an appeal by Gurdeep Singh against the order of the CIT(A)-30, New Delhi, which upheld the addition of Rs. 47,00,000 as undisclosed income from the purchase of a property. The addition was based on a search action conducted on M/s Hans Group, which led to the discovery of alleged undisclosed investments by the assessee. The Tribunal found that the property in question was unrelated to the specific proceedings under section 153C of the Income Tax Act, 1961, which were initiated against the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792521 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2021-2022
• Appeal Filed On: 29-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Assessee Lawyers: RAJIV KUMAR JAIN
• Keywords: Unexplained investment
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Manish Agarwal, Accountant Member ITA No. 5306/Del./2025 : Asstt. Year : 2021-22 Gurdeep Singh, E-92, Second Floor, Preet Vihar, East Delhi, Delhi-110092 Vs ACIT, Central Circle-31, New Delhi-110055 (APPELLANT) (RESPONDENT) PAN No. AGJPS4462R Assessee by: Sh. Rajiv Kumar Jain, CA Revenue by: Sh. Jitender Singh, CIT-DR Date of Hearing: 27.11.2025 Date of Pronouncement: 04.12.2025 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2021-22, arises against the CIT(A)-30, New Delhi’s DIN & order No. ITBA/APL/M/250/2025-26/1078051121(1) dated 30.06.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961. 2. Heard both the parties at length. Case file perused. 3. It transpires during the course of hearing that both the learned lower authorities have added an amount of Rs.47,00,000/- as the assessee’s on-money representing his undisclosed income; paid for purchase of a property at 3rd Floor, C-94, Nirman Vihar, Delhi to the extent of ½ share. There is no dispute between the parties that the learned Assessing Officer had framed his assessment dated 25.03.2024 Printed from counselvise.com ITA No. 5306/Del/2025 Gurdeep Singh 2 in furtherance to the department’s search action dated 06.01.2021 carried out in M/s Hans Group of cases. He therefore, recorded his section 153C satisfaction on 29.09.2022 to this effect which culminated in the impugned addition made in the assessee’s hands as upheld in the CIT(A)’s lower appellate discussion. 4. Learned CIT-DR vehemently argues in this factual backdrop that the above search action had resulted in unearthing the assessee’s unexplained investment in cash which also stood duly collaborated by a whatsap chat between Sh. Parveen K. Jain and Sh. Vaibhav Jain. His case therefore is that we ought to confirm the impugned addition since based on the specific incriminating material as well as the other evidence found/seized during the course of search. 5. We have given our thoughtful consideration to the assessee’s and the Revenue’s vehement submissions/stands all along. We find no reason to sustain the impugned addition. This is for the precise reason that the learned departmental authorities had set into motion section 153C proceedings against the assessee regarding his alleged unexplained investment/on-money transactions pertaining to E-92, Second Floor, Preet Vihar, Delhi whereas the addition in question has been made for some other property i.e. 3rd Floor, C-94, Nirman Printed from counselvise.com ITA No. 5306/Del/2025 Gurdeep Singh 3 Vihar, Delhi having no relation between them. This clinching factual position has gone un-rebutted from the Revenue side. We accordingly are of the considered view that both the learned lower authorities have erred in law and on facts in making the impugned on-money addition of Rs.47,00,000/- in the assessee’s hands which stands deleted in very terms. 6. All other remaining pleadings between the parties stand rendered academic. 7. This assessee’s appeal is allowed. Order Pronounced in the Open Court on 04/12/2025. Sd/- Sd/- (Manish Agarwal) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 04/12/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: Appellant 1. Respondent 2. CIT 3. CIT(Appeals) 4. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "