HANS RAJ DHANKAR vs. ASSISTANT COMMISSIONER OF INCOME TAX

2025

Thereafter, the petitioner was issued various notices, however, it is alleged that the petitioner did not provide the information as sought for by the Assessing Officer [AO]. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:38:23

Resultantly, the proceedings culminated in the assessment order dated 31.05.2023 whereby the AO made an addition of ₹ 10,00,00,000/- over and above the income of ₹ 2,56,70,843/- as returned by the petitioner.

A plain reading of the assessment order does not clearly indicate the ground on which the said addition has been made. Although the assessment order refers to Section 69A of the Act, the petitioner had denied that he had received any such sum during the Financial Year 2013-14 relevant to AY 2014-15. The petitioner had also called upon the AO to indicate the basis on which the petitioner is stated to have received the said amount or the details of the transaction on the basis of which the addition is sought to be made. However, the record, as produced, does not indicate any comprehensible reasons which, could possibly lead to the addition.

Mr Kumar, learned counsel appearing for the Revenue referred to paragraph no.3.2.1 of the assessment order, which encapsulates the reason why the addition has been made. The said extract of the assessment order is set out below:- “3.2.1 Description of Issues involved Information received in this case in connection with financial irregularities committed by Hans Raj Dhankar (Prop. of H R Builders). On perusal of statements of Tarmet, Syndicate Bank, Cantt. Branch, Delhi, payments have been made to H.R. Builders by DSIIDC, Delhi Government Account, Syndicate Bank, Bawana, although no subcontracting was allowed and still whole government payment is leaking to the assessee and no money was paid to Government Exchequer. On perusal of the “Verification Details” sheet as received from Insight Portal, the assessee is involved in financial irregularities resulting into This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:38:23

Whilst it does appear from the above that some allegations have been made, we are at a loss to understand precisely as to what the AO has alleged. We also requested Mr Kumar, to explain the transaction, however, he is also unable to explain as to what exactly is the allegation on the basis of which the assessment order is passed.

In the given circumstances of this case, it would be manifestly erroneous to compel the assessee to deposit any amount against the demand raised, the reasons of which, as stated above, are difficult to comprehend. Accordingly, we allow the present petition and restrain the Revenue from taking any steps (coercive or otherwise) for recovery of the demand pursuant to the assessment order, till the disposal of the appeal, preferred by the petitioner.

The petition is allowed in the aforesaid terms. The pending application is also disposed of.