ACIT, CENTRAL CIRCLE- 26, NEW DELHI vs. JAYANTI DALMIA, NEW DELHI

Briefly stated that the facts necessary for adjudication of the controversy at hand are: on the basis of search and seizure operation conducted on 20.01.2012, certain assets in the form of cash and jewellery were found and seized along with some documents and proceedings under Section 153A of the Income- tax Act, 1961 were initiated. Assessing Officer on the basis of statement recorded during the search operation proceeded to make addition of Rs.92,99,740 and Rs.3,91,794 as appearing in the bank account/link profile and interest accrued thereon under Section 69 of the Act on protective basis whereas substantive addition of this amount has been made in case of Shri Anurag Dalmia and thereby framed the assessment at the total income of Rs.9,59,37,791 under Section 143(3) read with Section 153A of the Act.

Assessee carried the matter before the learned Commissioner of Income-tax (Appeals) by way of filing the appeal who has deleted the addition by partly allowing the appeal.

Feeling aggrieved with the impugned order, Revenue has come up before the Tribunal by way of filing the present appeal.

We have heard the learned authorized representatives of the parties of the appeal, perused the order passed by lower authorities in the light of facts and circumstances of the case and law applicable thereto.

We have heard the learned Departmental Representative for the Revenue and perused the orders passed by the learned lower authorities in the light of the facts and circumstances of the case and law applicable thereto.

Undisputedly, learned Commissioner of Income-tax(Appeals) deleted the addition made by the Assessing Officer against the assessee on protective basis on the ground that since substantive addition made in this case in the hands of Anurag Dalmia for assessment years 2006-07 and 2007-08 and addition on account of notional interest for assessment year of the alleged amount for assessment years 2008-09 to 2011-12 has already been deleted, this protective addition is not sustainable by turning following findings:

We are of the considered view that when the substantive addition in the hands of Shri Anurag Dalmia has already been deleted by co-ordinate bench of the Tribunal vide order dated 15.02.2018 (supra), the protective addition in the hands of the assessee is also not sustainable in the eyes of law. So finding no illegality or perversity in the impugned order passed by the learned Commissioner of Income-tax(Appeals), present appeal filed by the Revenue is hereby dismissed.