AJAY KUMAR SINGH,DELHI vs. PCIT (CENTRAL)-1, DELHI, DELHI

ITA 3483/DEL/2025Status: DisposedITAT Delhi18 May 2026AY 2019-206 pages
AI SummaryAllowed

What were the facts?

During a search, jewellery bills totaling Rs. 31,28,131/- were found. The Assessing Officer (AO) added Rs. 1,92,650/- as perquisite from unexplained sources. The Principal Commissioner of Income Tax (PCIT) initiated revision proceedings under Section 263, considering the assessment order erroneous and prejudicial to revenue.

What did the Tribunal hold?

The Tribunal held that the PCIT's invocation of Section 17(2) to treat the jewellery purchase expense as a perquisite in the assessee's hands was unjustified. There was no employer-employee relationship established, and the expense was made by a company out of its unaccounted cash.

What were the issues?

Whether the PCIT was justified in revising the assessment order under Section 263 when the jewellery purchase expense was made by a company and not taxable as a perquisite in the hands of the individual assessee?

Which sections of the Income-tax Act were involved?

Section 263,Section 147,Section 143(3),Section 17(2),Section 132(4),Section 10(10CC)

AI-generated summary — verify with the full judgment below

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

For Appellant: Shri Neearj Mangla, C.A
For Respondent: Ms. Amisha S. Gupt, CIT-D.R
Hearing: 27.04.2026Pronounced: 18.05.2026

PER NAVEEN CHANDRA, ACCOUNTANT MEMBER :

This captioned appeal has been filed by the assessee against the order of the learned the Pr. Commissioner of Income-Tax (Central), Delhi - 1 [‘PCIT’ in short] dated 17.03.2025 under section 263 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) arising from the assessment order dated 30.12.2022 passed by Income Tax Department under section 147/143(3) of the Act concerning Assessment Year (A.Y.) 2019-20. [A.Y 2019-20]

2.

Brief facts of the case are that the assessee is an individual and originally filed his return of income for A.Y. 2019-20 u/s 139(1) on 31.08.2019 declaring total income of Rs. 96,18,850/-. Thereafter, a search and seizure operation u/s 132 of the Act w

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 263

All 13,474 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →