HOLY CONSULTANCY SERVICES PVT. LTD.,DELHI V. ITO, WARD-11(2), NEW DELHI

ITA 3061/DEL/2024

AI Insights

The case involves Holy Consultancy Services Pvt. Ltd., which appealed against the order of the Ld. CIT(Appeals)-NFAC, Delhi, concerning an addition of Rs.1,00,52,344 under section 68 of the Income Tax Act, 1961. The addition was initially made by the Ld. AO, who found that the assessee had utilized transactions in trading 'Chana' for purchasing shares, and the assessee failed to justify these transactions. The CIT(Appeals) upheld the addition, leading the assessee to appeal to the ITAT. The ITAT noted that the assessee had not provided sufficient documentation to substantiate the genuineness of the transactions and thus remanded the case back to the Ld. AO for a fresh assessment, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791757 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 25-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Set aside; Opportunity of being heard
• Section: 68

Judgement Text

"ITA No.3061/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”NEW DELHI BEFORE SHRIMAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRISANJAY AWASTHI, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.3061/Del/2024 िनधा रणवष /Assessment Year:2014-15 HOLY CONSULTANCY SERVICES PVT. LTD., Flat No.10, C 1/2 Model Town, Delhi. PAN No.AAACH0229H बना म Vs. ITO, C.R. Building, I.P. Estate, New Delhi. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by None Revenue by Shri Rajesh Kumar Dhanesta, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 08.12.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 08.12.2025 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. The present appeal arises from the order u/s 250 of the Income Tax Act, 1961 (hereinafter “the Act”), dated 10.05.2024. The impugned order is passed by Ld. CIT(Appeals)-NFAC, Delhi. On the last date of hearing none attended on behalf of the assessee but it was decided to continue with the adjudication with the help of Ld. DR. 1.1 In this case the Ld. AO vide his order dated 14/12/2016 made an addition of Rs.1,00,52,344/- u/s 68 of the Act. Printed from counselvise.com ITA No.3061/Del/2024 2 Briefly the facts are that the Ld. AO found that the assessee had allegedly utilized transactions in trading in “Chana” for purchasing shares. At the stage of Ld. AO it is recorded that the assessee failed to explain or justify the impugned transaction and hence the impugned addition was made. 1.2 Aggrieved with this action the assessee carried this matter before the Ld. CIT(Appeals), where also he could not succeed on the basis of findings given in para 5.3 at page 21 of the impugned order. The Ld. CIT(A) has held that the appellant failed to justify his contention about the genuineness of the impugned transaction and thereafter denied relief to the assessee. 2. Further aggrieved, the assessee has approached the ITAT with grounds which are running into 4 pages and are seen to be detailed and argumentative. To summarize the issues raised through the grounds of appeal it needs to be mentioned that the impugned addition made u/s 68 of the Act has been challenged on the ground that both the authorities below have disregarded the documents and Printed from counselvise.com ITA No.3061/Del/2024 3 evidences filed by the assessee and have made the impugned addition thereafter. 2.1 Before us, the Ld. DR took us through thefindings of Ld. AO, especially on pages 2 & 6 of the AO’s order, and thereafter brought our attention to bear on para 5.3 at page 21 of the impugned order. It was argued that the assessee could not establish the genuineness of the transaction and the details filed by him were not sufficient to escape the rigours of section 68 of the Act. 3. We have carefully considered the submissions of Ld. DR and have gone through the documents before us. It is seen that while the assessee did make some compliances before the authorities below but apparently, as recorded on page 6 of the Ld. AO’s order (first para thereon), sufficient documentation was not provided to the Ld. AO and thus an adverse view was taken. Considering the totality of facts and circumstances of the case, it is felt that the Ld. AO has proceeded in a more or less unilateral manner and has taken an adverse view. It is felt that in the interests of substantial justice, the assessee deserves another chance to present the full gamut of facts so that his correct income Printed from counselvise.com ITA No.3061/Del/2024 4 can be assessed. To this extent, we set aside the impugned order and remand this matter back to the file of the Ld. AO for fresh assessment. Needless to say, the Ld. AO would give ample opportunity of being heard to the assessee. 4. In the result, this appeal is allowed for statistical purpose. Order pronounced in the open court on 08.12.2025 Sd/- Sd/- (MAHAVIR SINGH) (SANJAY AWASTHI) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 08.12.2025 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "