KESHAV DALAL,PALWAL V. DCIT, CENTRAL CIRCLE-31, DELHI

ITA 5781/DEL/2024

AI Insights

The case involves an appeal by Keshav Dalal against the order of the Commissioner of Income Tax (Appeals), Delhi-25, which pertained to the Assessment Year 2012-13. The primary contention was regarding the additions made by the Assessing Officer under section 68 of the Income Tax Act, 1961, which included Rs. 13,00,000 as gifts and Rs. 2,50,000 received from relatives and friends. The Tribunal examined whether these additions were supported by any incriminating material, especially since the assessment year in question was unabated. The Tribunal referenced the Supreme Court's decision in PCIT vs. Abhisar Buildwell (P.) Ltd. to support its findings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711575 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2012-2013
• Other Referred Cases: PCIT vs. Abhisar Buildwell (P.) Ltd. 150 taxmann.com 257
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: GURJEET SINGH; CHARTERED ACCOUNTANT
• Keywords: Gift
• Section: 132; 153A; 68

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी अवधेश क ुमार िमŵा, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER आअसं.5781/िदʟी/2024(िन.व. 2012-13) ITA No. 5781/DEL/2024 (A.Y.2012-13) Keshav Dalal, H No. 32, H B Colony, Palwal, Haryana 121102 PAN: APYPD-2023-D ...... अपीलाथᱮ/Appellant बनाम Vs. Deputy Commissioner of Income Tax, Circle-3(1), Jhandewalan Extention, Delhi 110055 ..... ᮧितवादी/Respondent Assessee by : Shri Gurjeet Singh, Chartered Accountant Department by : Shri Dayainder Singh Sidhu, CIT(DR) सुनवाई कᳱ ितिथ/ Date of hearing : 22.07.2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 25.07.2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Delhi-25 [in short ‘the CIT(A)’] dated 29.11.2024, for Assessment Year 2012-13. 2. Shri Gurjeet Singh, appearing on behalf of the assessee submitted that though the assessee has raised multiple grounds challenging validity of the assessment order and the additions on merit, the assessee at this stage is only pressing jurisdictional issue raised in ground no.3 of appeal, that is, the addition has been made in the impugned assessment year without there being any incriminating material. He submitted that AY 2012-13 is the year of unabated assessment. The issue is squarely covered by the decision of Hon’ble Supreme Printed from counselvise.com 2 ITA No.5781/Del/2024 (AY 2012-13) Court of India in the case of PCIT vs. Abhisar Buildwell (P.) Ltd. 150 taxmann.com 257. The ld. AR pointed that the Assessing Officer (AO) made three additions i.e. (i) commission at the rate of 1% Rs.1,00,000/-; (ii) gifts received by the asssessee Rs.13,00,000/-; and (iii) amount received by the assessee from relatives and friends Rs.2,50,000/-. The addition at serial no. (ii) and (iii) was made u/s. 68 of the Act. Aggrieved by the assessment order dated 27.12.2019 passed u/s. 153A of the Act, the assessee carried the issue in appeal before the CIT(A). The CIT(A) vide impugned order deleted the addition of Rs.1,00,000/- in respect of commission and addition of Rs.2,50,000/- on account of payment received from relatives and friends. The ld. AR submitted that a perusal of the assessment order would show that the addition of Rs.15,50,000/- u/s. 68 of the Act which comprises of gifts Rs.13,00,000/- and amount received from relatives and friends Rs.2,50,000/- has been made without there being any incriminating material. There is no reference to seized material while making addition by the AO. He thus, prayed for quashing the assessment. 3. Per contra, Shri Dayainder Singh Sidhu representing the department vehemently defended the assessment order and the findings of the CIT(A). 4. Both sides heard, orders of the authorities below examined. The short issue for consideration before us is whether the addition of Rs.13,00,000/- sustained by the CIT(A), stem from any incriminating material found during the course of search. A search action u/s. 132 of the Act was carried out on 14.09.2017 at the residential/business premises of the assessee. Various papers/documents were found and seized during search. Two additions were made by the AO. The First addition of Rs.1,00,000/- was on account of alleged receipt of commission by the Printed from counselvise.com 3 ITA No.5781/Del/2024 (AY 2012-13) assessee. The addition was deleted by the CIT(A). The second addition of Rs.15,50,000/- is u/s. 68 of the Act. A perusal of the assessment order reveals that addition of Rs.15,50,000/- comprises of addition of Rs.13,00,000/- on account of alleged gift received from father and Rs.2,50,000/-was added by AO after rejecting assessee’s submissions that the said money was received from relatives and friends. There is no reference to any incriminating material whatsoever for making the additions by the AO. The addition has been made by the AO only for the reason, that satisfactory reply was not furnished by the assesseee and supportive evidences to substantiate gift from father amounting to Rs.13,00,000/- was not provided. The addition has been made without there being any incriminating material. It is no more res integra that in case of unabated assessments no addition can be made without incriminating material. The Revenue has not been able to show any incriminating material on the basis of which impugned addition has been made. We find merit in the submissions of the assessee, accordingly the assessee succeeds on ground no. 3 of appeal. 5. Since, no submissions have been made by the ld. AR of the assessee on other grounds of appeal i.e. ground no. 1, 2, & 4 to 6, at this stage, the same are left open. 6. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court on Friday the 25th day of July, 2025. Sd/- Sd/- (AVDHESH KUMAR MISHRA) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 25/07/2025 NV/- Printed from counselvise.com 4 ITA No.5781/Del/2024 (AY 2012-13) ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "