RAKESH KUMAR VOHRA,PANCHKULA V. DEPUTY COMMISSIONER OF INCOME TAX (CENTRAL CIRCLE-2), CHANDIGARH, C.R. BUILDING CHANDIGARH

ITA 1015/CHANDI/2025

AI Insights

The case involves an appeal by Shri Rakesh Kumar Vohra against the order of the Commissioner of Income Tax (Appeals)-3, Gurgaon, which confirmed the addition of Rs. 5.50 Lakhs to the assessee's income for the Assessment Year 2019-20. This amount was part of Rs. 12,39,600 in cash found during a search at the assessee's premises, which included Rs. 7,29,300 from his bedroom. The assessee claimed that Rs. 5.50 Lakhs belonged to his partnership firm, M/s Anant Stones Crusher. The Assessing Officer (AO) and CIT(A) rejected this claim, leading to the appeal. The Tribunal, however, accepted the telescoping benefit due to the assessee's substantial partnership in the firm, which had disclosed additional unaccounted income.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834090 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 11-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BHARAT BHUSHAN GARG LD. VIRTUAL
• Assessee Lawyers: DHRUV GOEL LD
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.1015/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2019-20) Shri Rakesh Kumar Vohra 420, Sector-6, Mansa Devi Sec-5, S.O.Panchkula Haryana - 134114 बनाम/ Vs. DCIT (Central Circle-2) 2nd Floor, C.R. Building Sector 17 Chandigarh 160017 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ACJPV-7330-B (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Dhruv Goel (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Bharat Bhushan Garg (CIT) – Ld. DR (Virtual) सुनवाईकीतारीख/Date of Hearing : 28-01-2026 घोषणाकीतारीख /Date of Pronouncement : 02-02-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of an order of learned Commissioner of Income Tax (Appeals)-3, Gurgaon [CIT(A)] dated 29-07-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 17-06-2021. The sole grievance of the assessee is confirmation of addition of Rs.5.50 Lacs u/s 69A which represent cash found during search on the assessee. The Ld. AR sought telescoping benefit out of Printed from counselvise.com 2 surrender made by the partnership firm in which the assessee acted as partner to the extent of 50%. The Ld. CIT-DR stated that in the absence of proven nexus, the benefit as pleaded by Ld. AR could not be granted to the assessee. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. The assessee-group was subjected to search action by the department on 05-04-2018. During search, cash of Rs.12,39,600/- was found from the residential premises which include Rs.7,29,300/- as found from the bedroom of the assessee. The assessee was accordingly required to explain the source of Rs.7,29,300/-. It was explained that the amount of Rs.5.50 Lacs belonged to assessee’s partnership firm M/s Anant Stones Crusher whereas the balance was kept for household and general expenses. The Ld. AO did not accept the source of Rs.5.50 Lacs since the capital account of the assessee in the firm did not show any such payment to the assessee. Accordingly, the amount of Rs. 5.50 Lakhs was added in the hands of the assessee. 3. During first appeal proceedings, the assessee drew attention to assessment of firm M/s Anant Stone Crusher for AYs 2018-19 & 2019- 20 wherein the firm had admitted additional income of Rs.62.87 Lacs which was estimated by Ld. AO at Rs.95 Lacs. However, Ld. CIT(A) rejected the same on the ground that income in those assessments was determined by applying a profit percentage to the estimated unaccounted turnover and it was not a cashflow-based disclosure wherein specific amount of cash was identified and traced to physical cash seized from any partner or the business premises. The seized Printed from counselvise.com 3 cash was not specifically linked to any entry or component of the firm’s revised income disclosures. Therefore, the benefit of telescoping could not be granted to the assessee. Accordingly, the impugned addition was confirmed against which the assessee in further appeal before us. 4. It clearly emerges that the assessee has acted substantial partner to the extent of 50% in M/s Anant Stone Crusher. The firm has suo- moto made additional disclosure of Rs.62.87 Lacs which represent estimated unaccounted profit. This income would be represented in the form of cash / investment or any other asset only. How the said estimation has been made would not be a relevant factor. The direct nexus of the same may also not be available since the unaccounted cash would be accumulated over a period of time. Therefore, on these facts, the telescoping benefit, in our considered opinion, could be granted to the assessee since the assessee is a substantial partner in the firm. This being so, the impugned addition as made by Ld. AO stand deleted. No other ground has been urged in the appeal. 5. The appeal stands partly allowed. Order pronounced on 2nd February, 2026. -Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated:02-02-2026 Printed from counselvise.com 4 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "