HARSH JINDAL,DELHI vs. INCOME TAX OFFICER, WARD 48(1), NEW DELHI, CIVIC CENTRE, DELHI

PER MADHUMITA ROY, JM:

The instant appeal filed by the assessee is directed against the

order dated 12.03.2025 passed by the Commissioner of Income Tax

(Appeals)-Delhi under Section 250 of the Income Tax Act, 1961

(hereinafter referred to as ‘the Act’) arising out of the Assessment Order

dated 19.03.2023passed by the Assessment Unit, Income Tax

Department under Section 147 r.w.s. 144 r.w.s. 144B of the Act for

Assessment Year 2018-19.

P a g e | 2 ITA No.2729/Del/2025 Harsh JindalVs. ITO, Ward 48(1)

income of Rs. 9,67,501/- including capital gains of Rs. 3,92,880/- and

income from other sources of Rs. 74,823/-. On the gross total of income

of Rs. 14,35,204/-, the assessee claimed deduction under Chapter VI-A

of Rs. 1,65,235/- and declared ultimate taxable income of Rs.

12,69,970/- which was processed under Section 143(1) of the Act on

05.12.2018.

Portal under the High Rish CRIU/VRU that the assessee was a

beneficiary of bogus purchases amounting to Rs. 77,71,894/- from Shri

Deepak Sharma, proceeding under Section 148A of the Act was initiated

by serving notice upon the assessee. However, no response was made by

the assessee and, therefore, finally proceeding was completed upon

making addition the hands of the assessee which was is turn confirmed

by the Ld. CIT(A). Hence the instant appeal before us.

Section 132 of the Act was conducted in the case of Shri Deepak Sharma

Group of Mandi, Gobindgarh. Further, information was available on the

official GST Portal, that two GST Nos. being 03BGPPS4292E2Z4 (Shri

Salasar Balaji Industry) & 03BGPPS4292E1Z5 (GS Industries) were

registered against PAN of Shri Deepak Sharma.

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4.1. The said GST number in favour of GS Industries was cancelled by

GST Authorities suo-moto w.e.f 10.10.2017. There was also allegation

that the Assessee was beneficiary of bogus accommodation entries with

respect to purchases made from Shri Deepak Sharma. Relevant to

mention that the Assessee declared purchase of Rs. 77,71,894/-from

Shri Deepak Sharma. Furthermore during the search Shri Deepak

Sharma stated that he maintained books of accounts at 431, Sector-10A,

Mandi Gobindgarh though no books of accounts was found. It had also

been mentioned in the Form-3CD that Deepak Sharma does wholesale

trading of metal and metal ores. Relevant to mention that during search,

no goods related to the said business was ever found. While recording

statement under Section 131(1A) of the Act, Shri Deepak Sharma on

14.07.2022 was specifically confronted about the entities registered with

GST department under his PAN wherein he had admitted of not having

any genuine business and so it was used to provide accommodation

entries. The statement already been reproduced in the AO’s order placed

before us. On the basis of such finding of fact, proceedings under

Section 148 of the Act was initiated and in the absence of any

explanation rendered by the assessee, finally, show-cause was issued

and upon rejecting books of accounts, the AO made the addition of Rs.

9,67,501/-.

P a g e | 4 ITA No.2729/Del/2025 Harsh JindalVs. ITO, Ward 48(1) Harsh Jindal

4.2. The Assessee filed appeal with Ld. CIT(A), who dismissed the appeal The Assessee filed appeal with Ld. CIT(A), who dismissed the appeal The Assessee filed appeal with Ld. CIT(A), who dismissed the appeal

of the Assessee by holding as under: the Assessee by holding as under:-

P a g e | 5 ITA No.2729/Del/2025 Harsh JindalVs. ITO, Ward 48(1) Harsh Jindal

the basis of his statement recorded on 14.07.2022 the basis of his statement recorded on 14.07.2022 whereas whereas, the reason

for reopening was sought to be recorded on 17.03.2022 for reopening was sought to be recorded on 17.03.2022 i.e. much prio much prior to

the statement of Shri Deepak Sharma of Shri Deepak Sharma and thus, the reassessment is the reassessment is

void-ab-initio and liable to be quashed. initio and liable to be quashed.

P a g e | 6 ITA No.2729/Del/2025 Harsh JindalVs. ITO, Ward 48(1)

information available on official GST Portal, “services.gst.gov.in”. two

GST numbers03BGPPS4292E2Z4 (Shri Salasar Balaji Industries) and

03BGPPS4292E1Z5 (GS Industries) were registered against PAN

BGPPS4292E of Sh. Deepak Sharma. The said GST number in favour of

GS Industries was cancelled by GST Authorities suo-moto w.e.f

10.10.2017. There was also allegation that the Assessee was beneficiary

of bogus accommodation entries with respect to purchases made from

Shri Deepak Sharma. In the form 3CD, further Shri Deepak Sharma

stated that he maintains books of accounts at 431, Sector-10A, Mandi

Gobindgarh, but on such books of accounts was found. It was further

mentioned in Form 3CD that Shri Sharma does wholesale trading of

metal and metal ores but no such goods related to the said business was

found. In that view of the matter, the Ld. A.O. was of the view that no

genuine business activities was undertaken by Shri Deepak Sharma at

the declared business address. It further appears that during the

assessment proceedings in-spite of several notices having been served,

no compliance was received from the Assessee. Finally on receipt of the

show cause notice, a written submission dated 02.02.2023 along with

some documents that too partial compliance to the notice before under

Section 142(1) of the Act was made by the Assessee. However, no

explanation has been rendered by the Assessee in regard to the issues

P a g e | 7 ITA No.2729/Del/2025 Harsh JindalVs. ITO, Ward 48(1)

raised in show cause notice but adjournment for compliance were sought

for which was also granted. However, since nothing was forthcoming

from the Assessee, the assessment was finalized upon making addition in

the hands of the assessee. Therefore, it is clearly evident that the

Assessee never participated in the proceeding under Section

148A(b)/148A(d) of the Act.

Assessee except uploading paperbook containing documents, whereas

the Assessee was granted liberty to adduce evidence in support of the

case made out. We further note that the statement made by Sh. Deepak

Sharma, under these facts and circumstances of the matter, having no

relevance as the information from GST as narrated hereinabove which is

found enough to record satisfaction of prima facie view of escapement of

assessment by the Assessee and, therefore, the argument advanced by

the Ld. AR that the satisfaction recorded dated 14.07.2022 was on the

basis of the statement recorded on 17.03.2022 since much prior to the

statement of Shri Sharma, the entire proceeding is vitiated is found to be

no legs to stand upon. In that view of the matter, in our considered

opinion the matter may be sent for consideration of the issue before the

Ld. CIT(A). Thus, with the above observation we set aside the issues to

the file of the Ld. CIT(A) for consideration of the same afresh upon

granting an opportunity of being heard to the assessee. The Ld. CIT(A) is

P a g e | 8 ITA No.2729/Del/2025 Harsh JindalVs. ITO, Ward 48(1)

further directed to pass a reasoned order upon considering the evidences

on record or any other evidence which the assessee choose to file at the

time of hearing of the matter.

purposes.

Order pronounced in the open court on 18/08/2026.

Sd/- Sd/-

(RAMIT KOCHAR) (MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 18 .08.2026 Sr. PS: Pooja Mittal/R.N