GURUCHARAN SINGH HORA,RAIPUR V. DCIT,CENTRAL CIRCLE-8, DELHI

ITA 1806/DEL/2025

AI Insights

The case involves an appeal by Sh. Gurucharan Singh Hora against the assessment order for the year 2020-21, which was contested under sections 153A and 143(3) of the Income-tax Act, 1961. The primary legal contention was the procedural validity of the section 153A assessment compared to a regular assessment under section 143(3). The Tribunal examined the validity of the jurisdiction transfer and the substantive additions made to the assessee's income, which included unexplained cash amounts. The Tribunal's decision addressed procedural and substantive issues, leading to a partial allowance of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 825090 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2020-2021
• Appeal Filed On: 24-03-2025
• Other Referred Cases: PCIT Vs. Anand Kumar Jain (2021) 452 ITR 384 (Del.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHOBHA BANSAL
• Assessee Lawyers: SUNIL KUMAR AGGARWAL
• Section: 143(3); 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1806/Del/2025 Assessment Year: 2020-21 Sh. Gurucharan Singh Hora, House No. C-39, 40,41, Sector-4, Devendra Nagar, Raipur, Chhattisgarh Vs. DCIT, Central Circle-8, Delhi PAN: AAYPH8732L (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2020-21, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/APL/S/250/2024-25/1072270642(1), dated 17.01.2025 involving proceedings under section 153A r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused. Assessee by Sh. Sunil Kumar Aggarwal, CA Department by Sh. Shobha Bansal, CA Date of hearing 24.12.2025 Date of pronouncement 31.12.2025 Printed from counselvise.com ITA No.1806/Del/2025 2 | P a g e 2. Learned counsel representing the assessee raises his first and foremost legal argument that both the lower authorities have erred in law and on fact in framing the impugned section 153A r.w.s. 143(3) assessment than a “regular” one under section 143(3) of the Act; dated 30th March, 2022, which has been wrongly upheld in the lower appellate discussion. 3. That being the case, learned CIT(DR) not only refers to the CIT(A)’s detailed discussion in para 10 at page 23 that the departmental authorities had issued a yet another warrant of authorization dated 19.11.2020 but also he places before us a copy of the comments dated 22.12.2025 coming from the DCIT, Central Circle-08, New Delhi, in support thereof. 4. We have given out thoughtful consideration to the asseessee’s instant first and foremost legal argument. We find reason to accept the same. This is for the precise reason that apart from the impugned search dated 27.02.2020 carried out on M/s. Raipur Group of cases which followed the Assessing Officer’s section 153A notice, learned departmental authorities appear to have issued an yet another warrant of authorization on 19.11.2020 which renders the impugned assessment year AY 2020-21 as that covered in the Printed from counselvise.com ITA No.1806/Del/2025 3 | P a g e block of six assessment years under 153A of the Act. Rejected accordingly. 5. Next substantive issue between the parties is that of assessee’s substantive ground no. 1 challenging section 127(2) transfer order from ITO-1, Raipur to ACIT, Central Circle-1, Delhi. We are of the considered view that neither there is any material on record either indicating the same to be not sustainable in law no such a transfer of jurisdiction could form subject matter of challenge before the tribunal. Rejected accordingly. 6. Lastly comes the third substantive issue between the parties wherein the assessee is aggrieved against both the learned lower authorities’ action, inter alia, adding of Rs.1,36,03,896/- as well as latter twin cash sums of Rs.51,60,520/- and Rs.51,45,000/- as his “unexplained” money under section 69A r.w.s. 115BBE of the Act, in assessment order and upheld in the lower appellate discussion. 7. We notice from a perusal of the case records that the above former as well as the last sum are based on the relevant evidence collected from the official premises i.e. B-27/7, Near Ashadeep Hospital, New Rajendra Nagar, Raipur belonging to M/s. Gentle Entertainment Pvt. Ltd. than from the assessee’s possession. This Printed from counselvise.com ITA No.1806/Del/2025 4 | P a g e tribunal’s earlier order in assessee’s case itself ITA No.1805/Del/2025 (AY: 2019-20), dated 10.12.2025 has already settled the issue in light of PCIT Vs. Anand Kumar Jain (2021) 452 ITR 384 (Del.) that such an addition based on evidence collected from a third party’s premises (even in the same search), could only be made by taking recourse of section 153C proceedings. We thus delete both these impugned additions for this precise reason alone. 8. We now proceed to deal with the remaining addition amount of Rs.51,60,520/- found/seized at the assessee’s premises i.e. C- 39/40 and C-41, Sector-4, Devendra Nagar, Raipur. The assessee could hardly dispute this clinching fact before us during the course of hearing. We thus invoke section 292C of the Act to draw the necessary presumption that the above cash found belongs to the assessee only wherein he has failed to offer any cogent explanation all along. The same stand confirmed therefore. No other ground or argument has been pressed. 9. This assessee’s appeal is partly allowed in above terms. Order pronounced in the open court on 31st December, 2025 Sd/- Sd/- (MANISH AGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 31st December, 2025. Printed from counselvise.com ITA No.1806/Del/2025 5 | P a g e RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "