Sorav Gupta, Noida V. DCIT Central Circle-II, Noida

ITA 3571/DEL/2019

AI Insights

The case involves an appeal by Sorav Gupta against the order of the Commissioner of Income Tax (Appeals) -IV, Kanpur, which arose from an assessment order passed under Section 153A read with Section 143(3) of the Income Tax Act, 1961. The assessment for the year 2015-16 included an addition of Rs. 3,23,500 as unexplained cash found during a search operation at the assessee's premises. The Tribunal considered the assessee's arguments, including substantial income declared over the years and withdrawals documented in the cash book, which supported the source of the cash. The Tribunal found merit in the assessee's plea, noting the lack of findings from the CIT (A) and concluded that the primary onus on the assessee was discharged.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121514 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 23-04-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 153A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A No.3571/DEL/2019 Assessment Year 2015-16 Sorav Gupta, E-45, Sector-51, Noida. v. Deputy Commissioner of Income Tax, Central Circle-II, 2 nd Floor, ARTO Complex, Noida. TAN/PAN: AFPPG6356P (Appellant) (Respondent) Appellant by: Shri Mukul Gupta, CA Respondent by: Shri T. James Singson, CIT-DR Date of hearing: 01 03 2022 Date of pronouncement: 07 03 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capti oned app eal has b ee n f il ed b y the A sse ssee a gainst the orde r o f the Com miss ioner of Inc ome T ax (A ppeals) -IV , K anp ur (‘ CIT (A )’ in short) date d 29. 01. 2019 a rising from th e assess me nt orde r dat ed 31. 12. 20 16 pass ed by th e Assessing O fficer un der Section 153A r. w. Section 143( 3) of the Income T ax A ct, 1961 ( the A ct) conce rni ng A Y 2015 -16. 2. In t he pr esent appeal, the assessee seeks t o chall enge the addi ti on of Rs. 3, 23, 500/ - on accoun t of unexp la ined c ash f ound in the c ours e of t he s earch. 3. Br ie fl y s tated, a se arch a nd seizure operati on was c on ducted on 11. 11. 2 014 at the premises o f T ir upat i-Su n World G roup of I.T.A No.3571/Del/2019 2 Compan ies (TSG C) inclu ding the assess ee. The cash of Rs. 3, 23, 500/ - w as found from the residenti al p remi ses of the assessee ou t of w hich R s. 2,50, 000/ - was also se i zed b y the inves ti ga ti on tea m. In the c our se o f the ass ess ment framed unde r Sect ion 153A r. w. Secti on 143(3) of t he Ac t, an a ddit ion of Rs. 3, 23, 500/ - was in ter a li a ma de to t he total i nco me o f the assessee. 4. T he a ssesse e prefe rred appeal be fore the C IT (A) agains t the af oresaid ac tion of the A ssess ing O f fice r. The C IT(A ) howe ve r adju dicated the i ssue a dverse t o assesse e wit hout giving an y fi ndi ngs on the iss ue. 5. A gg rieve d f urt he r, the asses see is i n a ppeal befor e the Trib una l. 6. We have heard the ri va l submi ss ions on the iss ue of al leged une xpla ined cash i n the c ust od y of the asses see. In t he ma tter, w e take note o f t he pl ea raised on beha lf of the assess ee, na me l y; (i) t he cas h book of the ass essee sub mi tte d be fo re the CIT (A) dis closes withdraw al of R s. 4, 50, 00 0/ - on 0 4.03. 2014 f rom the bank accoun t o f th e ass essee. T he asses ee als o holds open in g cash balance a s on 0 4. 04. 20 14 at Rs. 4,13, 041/ -. The cas h book of the assess ee e ve nt uall y reflects a cas h balance of Rs. 3, 23, 500/ - o n t he date of sear ch. (ii ) t he assessee is fi ling ta x return for more than las t tw ent y yea rs an d has pai d huge taxes on s ub s tant ial income de clare d as tabulated herei n: I.T.A No.3571/Del/2019 3 A . Y. I nc o m e T ax P a i d 20 1 3 - 1 4 1 , 74 , 23 , 77 0 52 , 08 , 84 5 20 1 4 - 1 5 4 , 36 , 41 , 66 0 1, 4 6, 4 1, 1 9 0 20 1 5 - 1 6 4 , 36 , 01 , 06 0 1, 4 6, 2 1, 7 2 6 20 1 6 - 1 7 4 , 31 , 40 , 11 0 1, 4 7, 2 8, 0 4 9 7. In the lig ht of th e profile of the assessee rea d w ith cash book, w e f ind m er it in the p lea of the asse ssee. A n average holdi ng of cas h of Rs. 3, 23, 500/ - is quit e nor mal w he n tes te d on the doct rine of pr ep onde ra nce t o probabil ities for a person show i ng su bs tant i al i nc ome o f R s. 4 crore and a bove yea r aft er ye ar. Co upled w ith this, t he cas h book of the assesse e supports the source of cash b y w ay of wi thdraw al s f rom the ban ks a nd e arlie r ye ar bal ances. T he C IT (A ) i nexpl icably has not render ed a n y fi ndi ng w ha ts oeve r w hi le deci di ng aga ins t t he assess ee. In suc h ci rc ums ta nces, we are of the opinion that the p ri mary onus w hich lay up on the ass es see stood dis char ged and such onus cou ld n ot be shi fted back to the assessee. T he ac tion of t he C IT(A ) is thu s set asi de a nd t he stand of the assesse e is rest ored. T he Assessi ng O fficer is di recte d to dele te the addit ions on t his sc ore. 8. In the res ul t, the appeal of t he asses see is allow e d. Order pronounced in the open Court on 07/03/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /03/2023 Prabhat