ACIT, CC-17, New Delhi V. Vinod Karasanbhai Patel, Delhi

ITA 1980/DEL/2021

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(Appeals)-27, New Delhi, which pertained to the assessment year 2014-15. The Revenue challenged the CIT(A)'s reliance on the Kabul Chawla case, arguing that the CIT(A) erred in law by holding that a completed assessment cannot be interfered with by the AO without incriminating materials. The Revenue also contested the deletion of various additions made by the AO, including unsecured loans and unexplained credits, which were removed by the CIT(A) on technical grounds. The Tribunal, after hearing both parties and reviewing the case, dismissed the Revenue's appeal, supporting the CIT(A)'s decision and the application of the Kabul Chawla precedent.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129179 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 29-08-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 26-12-2021
• Other Referred Cases: Kabul Chawla ITA No. 709/2014, Mr. K.N Gopa Kumar Vs CIT Central, Mr. KP Ummer Vs CIT, CIT Vs P Sasi Kumar
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 153A

Judgement Text

ITA No.- 1980/Del/2021 Vinod Karsanbhai Patel Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘H’: NEW DELHI) BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT JUDICIAL MEMBER ITA No:- 1980/Del/2021 ( Assessment Year: 2014-15) ACIT, Central Circle-17. Vs. M/s Vinod Karsanbhai Patel, New Delhi. PAN No: AACPP0956G APPELLANT RESPONDENT Revenue by : Ms. Sapna Bhatia, CIT (DR) Assessee by : Shri Nirbhay Mehta, Adv. Date of Hearing : 30.08.2023 Date of Pronouncement : 30.08.2023 ORDER PER N.K. BILLAIYA, AM This appeal by the Revenue is preferred against the order of the CIT(Appeals)-27, New Delhi, dated 31.08.2021 pertaining to AY 2014-15. The Grievance of the Revenue reads as under: “01: That the Ld CIT(A) has erred in law in relying on the ratio held in Kabul Chawla ITA No. 709/2014 Dated 28.08.2015 (Delhi) in holding that completed assessment cannot be interfered by the AO without incriminating materials and completely ignoring the fact that for making the assessment u/s 153A of the Act, 1961, the Income Tax Act does not stipulate any such conditionality on A.O. ITA No.- 1980/Del/2021 Vinod Karsanbhai Patel Page 2 of 4 02. That the Ld.CIT(A) has erred in law in ignoring the judgement of the Hon'ble Kerla High Court in the case of Mr. K.N Gopa Kumar Vs CIT Central (2017) 3901TR131. Mr. KP Ummer Vs CIT vide order dated 19.02.2019 and CIT Vs P Sasi Kumar wherein it is clearly held by the Hon'ble Court that the condition of incriminating material found and seized is not mandatory for making additions u/s 153A of the IT Act. 03. That the Ld CIT(A) has erred on facts and in law in quashing the assessment on technical grounds and not deciding on the various issues on merits. 04. That the Id. CIT(A) erred in law and on facts in deleting the addition of Rs 3,65,00,000/- on account of Unsecured Loans without properly appreciating the facts and circumstances of the case. 05. That the Id. CIT(A) erred in law and on facts in deleting the addition of Rs. 3,07,810/- on account of Disallowance of expenses without properly appreciating the facts and circumstances of the case. 06. That the Id. CIT(A) erred in law and on facts in deleting the addition of Rs. 2,80,00,000/- on account of Unexplained Credits without properly appreciating the facts and circumstances of the case. 07. (a) The order of the Hon'ble CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal.” 2. Representatives of both parties were heard at length. The case was carefully perused. We find that return income of the assessee at Rs. 43,58,439/- was assessed at Rs. 6,91,66,249/- after making addition to the tune of Rs. 6,48,07,810/. 3. We have carefully perused the underlined facts in the issues resulting into the impugned addition. We find that the entire additions made by the AO are devoid of any reference to any incriminating material found at the time of search. Therefore, the ratio laid-down by the Hon’ble Delhi High Court in the case of Kabul Chawla 61 taxman.com ITA No.- 1980/Del/2021 Vinod Karsanbhai Patel Page 3 of 4 41, squarely apply which has been rightly followed by the first appellate authority which calls for no interference from us. 4. In the result, appeal of the Revenue is dismissed. Order pronounced in the Open Court on 30.08.2023 Sd/- Sd/- (KUL BHARAT) (N.K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30/08/2023. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI