PR. COMMISSIONER OF INCOME TAX, DELHI -7 vs. RAMA HYGIENIC PRODUCTS PVT. LTD.

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ITA - 143 / 2026HC Delhi19 February 20263 pages
For Petitioner: PUNEET RAI
AI SummaryPartly Allowed

What did the High Court hold?

The High Court admitted the appeals and framed substantial questions of law. It questioned whether the ITAT was justified in allowing the appeal without considering the seized cheque books and statements recorded under Section 132(4).

What were the facts?

The Revenue appealed against an ITAT order that allowed the assessee's appeal. The Revenue highlighted the recovery of cheque books of certain proprietorship concerns from the assessee's possession as incriminating material.

What were the issues?

Whether seized cheque books and statements recorded under Section 132(4) constitute incriminating material justifying additions under Section 153A, and if the ITAT erred in disregarding them.

Which sections of the Income-tax Act were involved?

Section 132(4),Section 153A

AI-generated summary — verify with the full judgment below

$~66, 67 & 71 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 141/2026 CM APPL. 11467/2026 + ITA 142/2026 CM APPL. 11588/2026 + ITA 143/2026 CM APPL. 11607/2026

PR. COMMISSIONER OF INCOME TAX, DELHI -7 .....Appellant Through: Mr. Puneet Rai, SSC, Mr. Ashvini Kumar, JSC and Mr. Rishabh Nangia, Adv.

versus

RAMA HYGIENIC PRODUCTS PVT. LTD. .....Respondent

Through: None.

CORAM:

HON'BLE MR. JUSTICE DINESH MEHTA

HON'BLE MR. JUSTICE VINOD KUMAR

19.02.2026 O R D E R CM APPL. 11466/2026 (Exem.) in ITA 141/2026 CM APPL. 11587/2026 (Exem.) in ITA 142/2026 1. Exemptions are allowed, subject to all just exceptions. CM APPL. 11606/2026 (Exem.) in ITA 143/2026 2. The applications stand allowed. CM APPL. 11468/2026 (delay in re-filing) in ITA 141/2026 CM APPL. 11589/2026 (delay in re-filing) in ITA 142/2026 3. Instant application has been filed under Section 151 of the Civil Procedure Code, 1908, read with Section 5 of the limitation act seeking CM APPL. 11608/2026 (delay in re-filing) in ITA 143/2026 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 27/03/2026 at 13:11:36

condonation of delay of 141 days in re-filing ITA 141/2026, ITA 142/2026 and ITA 143/2026. 4. For the reasons stated in the applications, the delay is condoned. 5. Applications stand allowed. CM APPL. 11467/2026 (delay in filing) in ITA 141/2026 CM APPL. 11588/2026 (delay in filing) in ITA 142/2026 6. Instant application has been filed under Section 151 of the Civil Procedure Code, 1908, read with Section 5 of the limitation act seeking condonation of delay of 46 days in re-filing ITA 141/2026, ITA 142/2026 and ITA 143/2026. CM APPL. 11607/2026 (delay in filing) in ITA 143/2026 7. For the reasons stated in the applications, the delay is condoned. 8. Applications stand allowed. ITA 141/2026 ITA 142/2026 ITA 143/2026 9. Learned counsel for the petitioner invited Court’s attention towards para No. 3 of the conclusion of the remand report sent by the Assessing Officer to the Appellate Authority and highlighted that it has been reported that cheque books of M/s Mohan Lal Gupta & Sons, M/s. Yash Traders, M/s. T.R. Traders, proprietorship concerns of Mr. Mohan Lal Gupta were found/recovered from assessee’s possession.

10.

Hence, we find that following substantial questions of law arise in the order of the Tribunal :- I. Whether the Tribunal was justified in allowing the appeal and holding that the Commissioner of Income Tax (Appeals) and AO did not have any incriminating material to substantiate the 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 27/03/2026 at 13:11:36

addition, more particularly when the assessee was found in possession of cheque books of M/s Mohan Lal Gupta & Sons, M/s Yash Traders and M/s T.R. Traders, proprietorship concerns of Mr. Mohan Lal Gupta? II. Whether on the facts and in the circumstances of the case, the Hon'ble ITAT has failed to appreciate that the statements of key persons such as supplies and intermediaries recorded u/s 132(4) which were linked to the post search proceedings and constituted incriminating material capable of justifying additions u/s 153A? 11. Admit. 12. Issue notice through all permissible modes, returnable on 22.04.2026.

DINESH MEHTA, J

VINOD KUMAR, J FEBRUARY 19, 2026/dd

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 27/03/2026 at 13:11:36

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