DCIT CENTRAL CIRCLE 32, DELHI vs. NIRMAL KUMAR SARDA, RAJASTHAN

ITA 1370/DEL/2026Status: DisposedITAT Delhi30 September 2026AY 2014-154 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the revenue and the corresponding cross-objection filed by the assessee were dismissed. The Tribunal relied on a coordinate bench decision for Assessment Years 2012-13 and 2013-14 (ITA Nos. 8348 & 8349/Del/2025 and CO Nos. 58 & 59/Del/2026), where the revenue's appeals were dismissed. This dismissal was based on a prior decision (dated 06.11.2023 in ITA Nos. 285 & 286/Del/2022) where substantive additions in the hands of M/s RNB Overseas Pvt. Ltd. were deleted on merits. The Tribunal found no change in circumstances and concluded that the revenue's appeals lacked substance. Consequently, the appeals were dismissed, and the cross-objections were rendered superfluous and academic, thus also dismissed. No specific issue was left undecided.

What were the facts?

The assessee, Nirmal Kumar Sarda, and the revenue (DCIT Central Circle 32) are parties to this appeal and cross-objection concerning Assessment Year 2014-15. The challenge is to the order dated 31.10.2025 passed by the Commissioner of Income Tax (Appeals)-30, New Delhi. This order arose from an assessment order dated 25.06.2024 passed under Section 153A read with Section 144 of the Income Tax Act, 1961, by the ACIT, CC-32, New Delhi. The revenue is aggrieved by the deletion of protective additions made by the Assessing Officer on account of alleged accommodation entries from certain companies and individuals.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) erred in holding that a protective addition cannot survive solely because the substantive addition in the cases of M/s RNB Mercantile Ltd., M/s RNB Infrastructure Pvt. Ltd., and RNB International Pvt. Ltd. was deleted by the Tribunal, without appreciating that incriminating evidence and statements on oath under Section 131 of the Income Tax Act, 1961, established the assessee's role as an entry operator? Contentions: Assessee: The judgment does not record any specific contentions for the assessee. Revenue: The revenue contended that the CIT(A) erred in deleting the protective addition, arguing that the deletion of substantive additions in related entities did not negate the assessee's role as an entry operator, as evidenced by incriminating material and sworn statements.

Which sections of the Income-tax Act were involved?

Section 153A,Section 144,Section 131

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

ITA 1370/DEL/2026
C.O. No. 142/DEL/2026

Read from the judgment's own cause title. This page is filed under one of them.

INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI BENCH: G BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA 1370/DEL/2026 (निर्धारण वर्ा/Assessment Year: 2014-15) DCIT CENTRAL CIRCLE 32 NIRMAL KUMAR SARDA ROOM NO 359 3RD FLOOR N SARDA & ASSOCIATES ARA CENTRE E2 BEHIND STATE BANK OF JHANDEWALAN EXTENSION INDIA, GANGA SHAHAR NEW DELHI 110055, NEW Vs. ROAD-BIKANER- DELHI-110055, DELHI RAJASTHAN 334001 BIKANER-334001, RAJASTHAN अपीलधर्थी Appellant प्रत्यर्थी Respondent Permanent Account Number of AXGPS5107F Assessee:

C.O. No. 142/DEL/2026 (निर्धारण वर्ा/Assessment Year: 2014-15) NIRMAL KUMAR SARDA DCIT CENTRAL CIRCLE 32 N SARDA & ASSOCIATES ROAD-BIKANER- RAJASTHAN EXTENSION NEW DELHI 334001 110055, NEW DELHI-110055, BIKANER-334001, RAJASTHAN DELHI अपीलधर्थी Appellant प्रत्यर्थी Respondent Permanent Account Number of AXGPS5107F Assessee:

ITA 1370/DEL/2026 & CO.142/Del/2026 NIRMAL KUMAR SARDA

अपीलार्थी द्वारा/Appellant represented Shri Virender Singh, CIT (DR) by: Shri Anil Sarda, CA & प्रत्यर्थी द्वारा/Respondent represented Shri Nirmal Kumar Sa

The order continues below.

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