Rajeev Gupta, Delhi V. DCIT Central Circle-46(1), Delhi

ITA 1066/DEL/2022

AI Insights

The case involves an appeal by Rajeev Gupta against the order of the Pr. CIT-10, Delhi, which set aside the assessment order for the Assessment Year 2017-18. The original assessment had accepted the returned income of Rs. 74,92,620. However, subsequent information regarding substantial cash deposits during the demonetization period led to a re-examination of the case. The Pr. CIT set aside the original assessment order, directing a fresh assessment, based on the presumption that the cash deposits belonged to the assessee. The Tribunal, however, found that the Pr. CIT's order was arbitrary and without jurisdiction, as the conditions precedent for exercising powers under section 263 were not satisfied.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131827 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 07-12-2022
• Assessment Year: 2017-2018
• Appeal Filed On: 16-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 6; 263; 63; 132; 2; 153A; 133(6)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHIBENCH ‘F’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 1066/Del/2022: Asstt. Year: 2017-18 Rajeev Gupta, 1658-59, Dariba Kalan, New Delhi-110006 Vs. DCIT, Central Circle-46(1), Delhi (APPELLANT) (RESPONDENT) PAN No. ACFPG9713R Assessee by : Sh. Ashok Jain, CA Sh. Ashu Goel, CA Revenue by : Sh. Shashi Bhushan Shukla, CIT DR Date of Hearing: 08.12.2022 Date of Pronouncement: 03.03.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of the ld Pr. CIT-10, Delhi dated 15.03.2022 for Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal:- “ 1 . T h a t t h e o r d e r U / s 2 6 3 o f I n c o m e T a x A c t , 1 9 6 1 o f L d . C o m m i s s i o n e r o f I n c o m e T a x D e l h i - 1 0 s e t t i n g a s i d e t h e a s s e s s m e n t f r a m e d u / s 1 4 3 ( 3 ) / 1 5 3 A o f t h e A c t i s a g a i n s t t h e l aw , f a c t s , c i r c u m s t a n c e s , n a t u r a l j u s t i c e a n d a l l o t h e r p r i n c ip l e s a n d r u l e s o f l a w a s s u c h i s l i a b l e t o b e q u a s h e d . 2 . T h a t L d C o m m i s s i o n e r o f I n c o m e T a x D e l h i - 1 0 e rr e d i n s e t t i n g a s i d e t h e o r d e r p a s s e d u / s 1 4 3 ( 3 ) r . w . s 1 5 3 A d a t e d 1 5 . 0 3 . 2 0 2 2 e v e n t h o u g h t h e c o n d i t i o n s p r e c e d e n t f o r v a l i d i t y e x c i s in g h i s j u r i s d i c t i o n u / s 2 6 3 w e r e n o t s a t i s f i e d . A s s u c h n o t i c e i s a r b i tr a r y a n d o r d e r i s w i t h o u t j u r i s d i c t i o n . 3 . T h a t o n t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , t h e C I T e r r e d i n h o l d i n g t h a t t h e a s s e s s m e n t o r d e r i s e r r o ne o u s i n s o f a r a s i t i s p r e j u d i c i a l t o i n t e r e s t o f r e v e n u e o n t h e b a s i s o f f a l s e & m i s l e a d i n g p r e s u m p t i o n s a n d c o n j e c t u r e s t h a t t h e c a s h d e p o s i t ed o f R s . ITA No. 1066/Del/2022 Rajeev Gupta 2 5 . 1 2 , 0 0 , 0 0 0 d u r i n g d e m o n e t i z a t i o n p e r i o d i n I n d u s I nd B a n k A c c o u n t N u m b e r 2 0 1 0 0 0 4 5 6 0 8 8 b e l o n g s t o a s s e s s e e . 4 . T h a t o n t h e f a c t a n d c i r c u m s t a n c e s o f t h e c a s e an d i n l a w , L d . P r . C I T D e l h i - 1 0 e r r e d i n h o l d i n g t h a t a s s e s s m e n t o r d e r p a s s e d b y t h e A . O . i s e r r o n e o u s i n s o f a r a s i t i s a l s o p r e j u d i c ia l t o t h e i n t e r e s t o f r e v e n u e . t h e r e b y s e t t i n g a s i d e t h e s a i d a s s e s s m e n t o r d e r t o t h e f i l e o f t h e A . O . t o r e - e x a m i n e t h e i s s u e o f c a s h d e p o s i t e d b y t h e a p p e l l a n t a f t e r m a k i n g n e c e s s a r y v e r i f i c a t i o n , i n q u i r i e s a n d i n v e s t i g a t i o n s w h i c h c l e a r l y s t a n d s v e r i f i e d b y A O d u r i n g a s s e s s m e n t p r oc e e d i n g s . 5 . T h a t t h e o r d e r o f D C I T , C e n t r a l C i r c l e - 2 6 . N e w D e l h i U / s 1 4 3 ( 3 ) / 1 5 3 A d a t e d 2 4 . 1 2 . 2 0 1 9 w a s n e i t h e r e r r o n e o u s n o r i t w a s p r e j u d i c i a l t o i n t e r e s t o f r e v e n u e c o n s i d e r i n g t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d p r o v i s i o n s o f l a w . A s s u c h a c t i o n o f L d P r . C I T D e l h i t o s e t a s i d e t h e s a m e U / s 2 6 3 i s w i t ho u t j u r i s d i c t i o n a n d n e e d s t o b e u n d o n e . 6 . T h a t t h e o r d e r o f t h e L d . C I T i s a l s o b a d i n l a w a s i t i s b a s e d o n c o n s i d e r i n g t h e f r e s h m a t e r i a l w h i c h w a s n o t p a r t of t h e r e c o r d o f t h e D C I T a t t h e t i m e o f p a s s i n g t h e o r d e r b y t h e L d . D CI T a n d i s s u i n g s p e c i f i c d i r e c t i o n t o p a s s t h e o r d e r i n a p a r t i c u l ar m a n n e r w h i c h c a n n o t b e d o n e i n p r o c e e d i n g s u / s 2 6 3 o f t h e I n c o m e T a x A ct 1 9 6 1 .” 3. In this case a search and seizure operation u/s 132 of the Act was carried on 23.03.2018 and the assessment has been completed u/s 153A accepting the returned income of Rs. 74,92,620/-. 4. Later based on the information provided by the ADIT(Inv.)(Hq)-2, OCM Cell- 2, New Delhi vide his letter F.No. ADIT(Inv)(Hq)-2/OCMCell-2/2020-21/221dated 03.02.2021,with regard to the cash deposits wherein mentioned that an amount of Rs.5,12,00,000/- was credited to the account no. 201000456088 related to Shri Rajeev Gupta during the demonetization period. 5. On an enquiry the assessee submitted that he do not have any such account and he had only four accounts in Yes Bank Ac/no. 1669070001764-SB Account, State Bank of India Ac/No. 10820065223-Current Account, Kotak Mahindra Bank Ac/ No. ITA No. 1066/Del/2022 Rajeev Gupta 3 523010116771-SB Account and HDFC Bank Ac/ No. 5981000028170-SB Account. 6. Subsequently, the Ld Pr. CIT called information u/s 133(6) of the Act from the Manager, IndusInd Bank on 16.08.2021 Ac/ “No. 201000456088”. It was categorically mentioned that the account is in the name Orchid Infrastructures Development Pvt. Ltd. wherein, the deposits have been reflected on 13.12.2016, 21.12.2016 and 31.12.2016. The bank statement has been duly provided to the ld. PCIT. The account is a current account- Corporate Current Account showing the name of “Orchid Infrastructures Development Pvt. Ltd.”, N-2, South Extension Part-I, New Delhi-110049. Inspite of the clear findings, the ld PCIT went ahead pitiably setting aside the impugned assessment order with a direction to the AO to make fresh assessment. Such action of the ld PCIT under no circumstances can be sustained. 7. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 03/03/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 03/03/2023 *Ajay Kumar Keot, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR