Dr. Sanjeev Bagai, New Delhi V. ACIT, New Delhi

ITA 3087/DEL/2016

AI Insights

Dr. Sanjeev Bagai appealed against the order of the CIT(A)-XX, New Delhi, which confirmed the reassessment under section 148 of the Income Tax Act, 1961, and sustained the addition of Rs. 5,00,000 as income escaping assessment. The addition was based on the issuance of 2500 sweat equity shares. The Tribunal referenced similar cases, notably Dr. Amita Mitra and ACIT Vs. Harish Bhandari, where similar issues were resolved, leading to the conclusion that the addition in Dr. Bagai's case was not warranted. The Tribunal's decision was influenced by the absence of any new factual matrix that would justify a different outcome from these precedents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131850 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 20-02-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 29-05-2016
• Other Referred Cases: Dr. Amita Mitra in ITA No. 932/Del/2016, ACIT Vs. Harish Bhandari in ITA No. 3049/Del/2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 264

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHIBENCH ‘G’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 3087/Del/2016 : Asstt. Year: 2007-08 Dr. Sanjeev Bagai, 43, Poorvi Marg, Vasant Vihar, New Delhi-110057 Vs. ACIT, Circle-37(1), New Delhi (APPELLANT) (RESPONDENT) PAN NO. AAAPB5125H Assessee by : Sh. Satyajeet Goel, Adv. Sh. Rajat Garg, Adv. Revenue by : Sh. Rajesh Kumar Dhanesta, Sr. DR Date of Hearing: 21.02.2023 Date of Pronouncement: 24.02.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of the ld CIT(A)-XX, New Delhi dated 26.02.2015. 2. The assessee has raised the following grounds of appeal:- “1. That on the facts and circumstances of the case, the ld CIT(A) is not justified in confirming reassessment u/s 148 without appreciating that reassessment was not based on any tangible material and recording of proper satisfaction. 2(i) That the ld CIT(A) is also not justified in sustaining addition of Rs. 5 lacs as income escaping assessment by making reference to provisions of Sec. 28(iv) of the IT Act, 1961. (ii) That there is no factual or legal basis for any such addition. 2 3. That orders of the lower authorities are merely based on presumption and surmises and not sustainable under the law.” 3. The AO made addition of Rs.5,00,000/- u/s 28(iv) of the Income Tax Act, 1961 on account of 2500 sweat equity shares of face value of Rs.10/- and premium of Rs.190/-. 4. The similar matter has been adjudicated in the case of Dr. Amita Mitra in ITA No. 932/Del/2016 wherein the issue has been taken up by the assessee before the ld. PCIT u/s 264 of the Income Tax Act, 1961. Further, the similar issue has been adjudicated and dismissed the appeal of the Revenue by the Co- ordinate Bench of Tribunal in the case of ACIT Vs. Harish Bhandari in ITA No. 3049/Del/2016 for A.Y. 2007-08 vide order dated 03.01.2023 which is available at www.itat.gov.in. Hence, in the absence of any change in the factual position, we hold that the addition made by the AO is liable to be deleted. 5. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 24/02/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 24/02/2023 *Subodh Kumar/AK, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR