Sangeeta Kapoor, New Delhi V. DCIT, Central Circle- II , Faridabad

ITA 2654/DEL/2018

AI Insights

This case involves an appeal by Smt. Sangeeta Kapoor against the order of the Commissioner of Income-tax (Appeals)-2, Gurgaon, which affirmed the additions made by the Assessing Officer under sections 153A and 143(3) of the Income-tax Act, 1961. The additions were made on account of undisclosed income invested in property and unexplained cash deposits in the Assessee's bank account, following a search and seizure operation. The Tribunal, referencing the judgments in CIT vs. Kabul Chawla and Pr. Joint CIT vs. Meeta Gutgutia, found that no incriminating material was unearthed during the search, and thus, no additions could be made to the already assessed income.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115987 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: B
• Next Hearing Date: 27-03-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 15-04-2018
• Other Referred Cases: CIT vs. Kabul Chawla (2016) 380 ITR 573, Pr. Joint CIT vs. Meeta Gutgutia (2018) Taxmann.com 411 (SC), Pr. Joint CIT vs. Meeta Gutgutia (2017) 395 ITR 526 (Delhi High Court)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Documents seized
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’ NEW DLEHI BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI N.K. CHOUDHRY, JUDICIAL MEMBER ITA No. 2654/Del/2018 Assessment Year: 2008-09 Smt. Sangeeta Kapoor, C/o RRA Taxindia, D-28, South Extension, Part-I, New Delhi. PAN: ABMPK7970L VersuS DCIT, Central Circle-II Faridabad. (Appellant) (Respondent) Assessee by : Sh. Somil Agrawal, Ld. Adv. Sh. Deepesh Garg, Ld. Adv. Sh. Shrey Jain, Ld. Adv. Revenue by : Ms. Richa Khoda, Ld. CIT/DR Date of hearing : 28.03.2023 Date of order : 31.03.2023 ORDER PER N.K. CHOUDHRY, J.M. This appeal has been preferred by the Assessee against the order dated 30.01.2018, impugned herein, passed by the learned Commissioner of Income-tax (Appeals)-2, Gurgaon (in short “Ld. Commissioner”), u/s. 250(6) of the Income-tax Act, 1961 (in short ‘the Act’) for the assessment year 2008-09. 2. In the instant case, based on a search and seizure operation conducted on 09.05.2012, an assessment u/s. 153A r.w.s. 143(3) of the Act was passed by the Assessing Officer on dated 27.02.2015, ITA No. 2654/Del/2018 2 whereby the additions of Rs.2,47,240/- and Rs.1,70,000/- respectively on account of undisclosed income invested in purchase of property and unexplained cash deposits in Assessee’s bank account, have been made. The ld. Commissioner affirmed the said addition by dismissing the appeal filed by the Assessee. 3. Heard both the parties and perused the material available on record. At the outset, we observe that in the instant case, admittedly, the impugned additions made by the ld. Authorities below does not emanate from the documents seized during the course of search and seizure operation. The mandate of the Hon’ble jurisdictional High Court in the case of CIT vs. Kabul Chawla (2016) 380 ITR 573 is very much clear that if no incriminating material unearthed during the search, then no addition can be made to the income already assessed. The said dictum of the Hon’ble High Court stands affirmed by the Hon’ble Apex Court in the case of Pr. Joint CIT vs. Meeta Gutgutia (2018) Taxmann.com 411 (SC) in SLP (C) Dairy No. 18121/2018 dated 2nd July, 2018, by dismissing the SLP filed against the judgment of Delhi High Court in the case of Pr. Joint CIT vs. Meeta Gutgutia (2017) 395 ITR 526 (Delhi High Court), wherein the same dictum was laid down by the Hon’ble Court as in CIT vs. Kabul Chawla (supra). Even the impugned order involved herein, was also considered in Assessee’s own case for the Assessment Year 2010-11 and similar addition has been deleted by the Hon’ble Tribunal by passing Order dated 16-09- 2021 in ITA no. 2655/2018, by taking refuge of Kabul Chawla case (Supra). Consequently, the impugned additions are not sustainable, hence we are inclined to delete the same by setting aside the impugned order. ITA No. 2654/Del/2018 3 4. In the result, the appeal filed by the Assessee stands allowed. Order pronounced in the open court on 31.03.2023 Sd/- Sd/- (ANIL CHATURVEDI) (N.K. CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT Assistant Registrar ITAT New Delhi Draft dictated Draft placed before author Approved Draft comes to the Sr.PS/PS Order si gned and pronounced on Date of uploading on the website File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk. Date of dispatch of Order.