SACHIN,ROHTAK V. ACIT, CENTRAL CIRCLE-13, DELHI

ITA 2320/DEL/2023

AI Insights

The case involves an appeal by Sachin against the order of the Commissioner of Income Tax (Appeals)-28, New Delhi, which upheld the assessment made by the Assistant Commissioner of Income Tax, Central Circle-13, Delhi. The assessment included an addition of Rs. 1,50,000 as unexplained expenditure on foreign travel under section 69C of the Income Tax Act, 1961. The assessee contested the assessment on grounds including lack of opportunity to be heard and the mechanical approval under section 153D of the Act. The Tribunal, referencing a Supreme Court decision, found the addition to be unsustainable due to the absence of incriminating material.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471506 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2019-2020
• Other Referred Cases: Pr. CIT vs Abhisar Buildwell (2024) 2 SCC 433
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SINGH
• Keywords: Opportunity of being heard; Unexplained expenditure; Search and seizure
• Section: 132; 153A; 69C; 234B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘G’: NEW DELHI BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.2320/Del/2023 [Assessment Year: 2019-20] Sachin, House No.399, Pahrawar (69), Rohtak, Haryana-124021 Vs Assistant Commissioner of Income Tax, Central Circle-13, Delhi PAN-KXIPS7409L Assessee Revenue Assessee by None Revenue by Ms. Nidhi Singh, CIT-DR Date of Hearing 10.03.2025 Date of Pronouncement 27.03.2025 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-28, New Delhi dated 19.06.2023, arising out of assessment order u/s 153A r.w.s. 144 of the Act for Assessment Year 2019-20. 2. Ground of appeal raised by the assessee are as under:- 1. That the learned Commissioner of Income Tax (Appeals) - 28, New Delhi has erred both in law and, on facts in upholding the determination of income made by the learned Assistant Commissioner of Income Tax, Central Circle-13, Delhi of the appellant at Rs. 1,50,000/- in an order of assessment dated 25.9.2021 u/s 153A/144 of the Act of the Act. 2. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in disposing off the appeal ex- parte without granting any opportunity of being heard to the appellant. 2.1.That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that non appearance of the appellant on the 2 ITA No.2320/Del/2023 date of hearing was neither intentional nor deliberate and is not a case where appellant is not interested in prosecuting its appeal. In fact the appellant has uploaded a written submission dated 12.6.2023 vide acknowledgement no. 22527131120623 in the portal. 3. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in upholding the assumption of jurisdiction u/s 153A of the Act and, framing of assessment u/s 153A/143(3) of the Act both of which deserve to be quashed as such.. 4. That since approval obtained u/s 153D of the Act was mechanical, illegal and invalid approval, order of assessment made u/s 153A/144 is invalid and without jurisdiction 5. That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in sustaining an addition of Rs. 1,50,000/-representing alleged expenditure incurred on foreign visit and held as unexplained expenditure u/s 69C red with section 115BBE of the Act. 6. That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in upholding the levy of interest of Rs.25,168/-u/s 234A of the Act and interest of Rs. 34,320/- u/s 234B of the Act which are not leviable on the facts and circumstances of the case of the appellant.” 3. Brief facts of the case:- In this case, a search and seizure operation u/s 132 of the Act was conducted in Chirag, Harish Kumar & Other group of cases on 03.03.2020, wherein, unexplained cash in foreign currency was found in Shri Sachin possession at IGI Airport. The assessment was completed u/s 153A r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) dated 25.09.2021 as the assessee failed to appear during the assessment proceedings. The Assessing Officer made addition of Rs.1,50,000/- u/s 69C of the Act on account of foreign travel. The relevant discussion by the Assessing Officer is made in para-4 of the assessment order, which is reproduced as below:- 4. During the course of the investigation proceedings, it came to the knowledge of the department that the assessee has visited foreign countries such as Dubai, combodia and Thailand atleast two times in the year under consideration, in this regards assessee was issued show cause notice dated 13.09.2021 which is reproduced hereunder: 3 ITA No.2320/Del/2023 \"You were asked to provide the copy of passport for the period under consideration with complete details of each and every foreign travel, details of expenses incurred on each foreign travel and source of such expenses incurred in Indian rupees as well as in foreign currency vide notice dated 07/09/2021. However, no details in this regards has been submitted by you till date. As per the information available with us, it is on record that you have travel to foreign country atleast twice in the year under consideration. Therefore, you are showcaused as to why the expenses incurred by you during foreign travel estimated to Rs. 1,50,000/- (75,000/- per trip * 2trips) should not be disallowed as unexplained expenditure.\" However, no compliance has been made of the above show cause notice by the assessee. From detailed discussion above, it is apparent that the assessee despite repeated opportunity failed to the statutory notices issued from this end. It is trite law that it is the responsibility of the assessee to file the desired details of income as well as expenses, which is within the knowledge of the assessee. However, the assessee has failed to file any such details/ evidences; this office has no other option but to assess the income of the assessee as per the provisions of section 144 of the Income Tax Act, 1961. Therefore, expenses incurred by the assessee for foreign visit amounting to Rs. 1,50,000/- (75,000/- per trip * 2 trips) is added to the income of the assessee as per the provision of section 69C of the Income Tax Act, 1961 read with section 115BBE of the Income Tax Act, 1961.” 4. Aggrieved with the said order, the assessee filed an appeal before the ld. CIT(A). The Ld. CIT(A) confirmed the order of the Assessing Officer on the ground that the assessee failed to explain the expenses incurred in foreign trips and therefore the action of the Assessing Officer was reasonable. 5. Against the above order, the assessee is in appeal before us. 6. The ld. AR submitted that assessment in this case has been made u/s 153A of the Act and the addition of Rs.1,50,000/- u/s 69C r.w.s. 115BBE of the Act has been made without any basis of incriminating material and relied upon the decision of Hon’ble Supreme Court in the case of Pr. CIT vs Abhisar Buildwell (2024) 2 SCC 433 and submitted that the addition should be deleted. 4 ITA No.2320/Del/2023 7. The ld. Sr. DR supported the orders of the authorities below. 8. We have heard the ld. DR and perused the material available on record. In this case, it is seen that the addition of Rs.1,50,000/- has been made without any incriminating material despite being assessment made u/s 153A of the Act. Therefore, respectfully following the decision of the Hon’ble Supreme Court in the case of Pr. CIT vs Abhisar Buildwell (supra), the addition of Rs.1,50,000/- is not sustainable and the same is deleted. 9. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 27th March, 2025. Sd/- Sd/- [YOGESH KUMAR US] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 27.03.2025 f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Assessee 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "