PRAKASH CHANDERGUPTA,KRISHNA NAGAR vs. ITO-WARD 16-5 DELHI, VIKAS BHAWAN ITO DELHI

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ITA 1432/DEL/2025Status: DisposedITAT Delhi27 May 2025AY 2007-08Bench: Sh. Satbeer Singh Godara (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the lower authorities relied solely on a search statement without any supporting receipt or admission details from the assessee. It further noted that such reliance was insignificant in light of CBDT's circular dated 10.03.2022.

What were the facts?

The assessee appealed against an addition made under Section 143(3) read with Section 147 of the Income Tax Act, 1961, for the Assessment Year 2007-08. The addition pertained to cash payments of Rs. 21,00,000/- made to a searched party.

What were the issues?

Whether a cash payment can be added solely based on a search statement without corroborative evidence like receipts or admissions, especially in light of subsequent CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 132(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

Hearing: 27.05.2025Pronounced: 27.05.2025

Asstt. Year : 2007-08 Prakash Chander Gupta, Vs Income Tax Officer, D-2/11, Krishna Nagar, East Delhi, Ward-61(5), New Delhi-110051 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AAIPG4565G Assessee by: Sh. V. K. Tulsian, FCA Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 27.05.2025 Date of Pronouncement: 27.05.2025 ORDER

This assessee’s appeal for Assessment Year 2007-08, arises against the CIT(A), Delhi-31’s DIN & order No. ITBA/APL/S/250/2024-25/1072735518(1) dated 30.01.2025, in proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

Learned departmental representative vehemently argues at the outset that both the lower authorities have rightly added the assessee’s cash payments of Rs.21,00,000/-; made to the searched party M/s Santosh Medical College, Ghaziabad, which was unearthed during the course of search, in the latter case on 26.07.2013 going by the search statement of it’s authorized person.

Prakash Chander Gupta 4. I have given my thoughtful consideration to the assessee’s and the Revenue’s vehement rival submissions reiterating their respective stands. A perusal of the case file reveals that there is not even a receipt alleged to have been signed by either the assessee or recipient or that the admissions details which could substantiate the impugned addition made in this case. All what both the learned lower authorities have done is to go by the searched party section 132(4) search statement in isolation which hardly carried any significance going by the CBDT’s landmark circular dated 10.03.2022. That being the case, I find no merit in the impugned addition which is hereby deleted in very terms.

5.

This assessee’s appeal is allowed. Order Pronounced in the Open Court on 27/05/2025.

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