M/S PEAK MINERALS & MINING PRIVATE LIMITED,DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 32, DELHI

ITA 6220/DEL/2025

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The case involves M/s. Peak Minerals & Mining Pvt. Ltd., the appellant, contesting the validity of the reopening of their income assessment for the year 2017-18 by the DCIT, Central Circle-32, Delhi. The reopening was based on the belief that income amounting to Rs.11,79,20,000 had escaped assessment. However, the Tribunal noted that the subsequent assessment did not add any income based on this reopening but disallowed interest expenditure under section 69C, which was upheld by the lower appellate authority. Citing the case of CIT Vs. Jet Airways (I) Ltd., the Tribunal concluded that the reopening was not justified as no addition was made regarding the reason for reopening, leading to the quashing of the reassessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788286 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 01-10-2025
• Other Referred Cases: CIT Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: ANKUR AGARWAL
• Keywords: Accommodation entries
• Section: 147; 69C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.6220/Del/2025 Assessment Year: 2017-18 M/s. Peak Minerals & Mining Pvt. Ltd., 116A, Somdutt Chamber-1, Bhikaji Cama Palace, RK Puram, New Delhi Vs. DCIT, Central Circle-32, Delhi PAN: AAGCP5126K (Appellant) (Respondent) ORDER This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)-30 [in short, the “CIT(A)”], New Delhi’s DIN and order no. ITBA/APL/M/250/2025- 26/1079714267(1), dated 19.08.2025 involving proceedings under section 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties at length. Case file perused. 2. Coming to the assessee’s first and foremost legal ground challenging validity of the impugned reopening itself, the tribunal Assessee by Sh. Ankur Agarwal, CA Department by Sh. Manoj Kumar, Sr. DR Date of hearing 24.11.2025 Date of pronouncement 24.11.2025 Printed from counselvise.com ITA No.6220/Del/2025 2 | P a g e hereby notices from a perusal of the case records that the learned Assessing Officer had set into motion section 148/147 mechanism after recording a reasons to believe that its income representing accommodation entries involving a sum of Rs.11,79,20,000/- had escaped assessment whereas his assessment framed on 30th March, 2022 ended up disallowing interest expenditure under section 69C amounting to Rs.79.20 lakhs which has been upheld in the lower appellate discussion. 3. That being the clinching factual position, I hereby quote CIT Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom.) that such a reopening wherein the learned Assessing Officer does not make any addition qua this sole reason therein; is not sustainable in law. The same stands quashed in very terms. All other pleadings between the parties on merits stands rendered academic. This assessee’s appeal is allowed. Order pronounced in the open court on 24th November, 2025 Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 24th November, 2025. RK/- Copy forwarded to: 1. Appellant Printed from counselvise.com ITA No.6220/Del/2025 3 | P a g e 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "