DCIT, CENTRAL CIRCLE-1, JAIPUR, JAIPUR vs. PRIYA DEWAN, SIKAR

ITA 288/JPR/2025Status: DisposedITAT Jaipur08 July 202568 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(A) was justified in deleting the additions made by the AO under Section 153A for want of incriminating material. However, the Tribunal found that the CIT(A) acted ultra vires by directing the AO to consider re-opening the assessment under Section 147. The Tribunal emphasized the principle of finality in legal proceedings and that a point of repose should be reached. The CIT(A)'s authority ended with deciding the appeal on the merits of the Section 153A assessment. Therefore, the cross-objections of the assessees were allowed, quashing the directions for re-opening under Section 147. The appeals of the revenue were dismissed. The decision in the lead case was applied mutatis mutandis to all other connected appeals and cross-objections.

What were the facts?

The appeals and cross-objections involved multiple assessees and assessment years (2014-15 and 2016-17). The revenue (DCIT, Central Circle-01, Jaipur) appealed against the orders of the CIT(A) which had deleted additions made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961. The assessees had filed cross-objections challenging directions issued by the CIT(A) to the AO to re-open assessments under Section 147. The core dispute revolved around the deletion of additions related to long-term capital gains and unexplained expenditure, and the subsequent directions for re-assessment. The Tribunal heard these appeals together, with ITA No. 301/JP/2025 and CO No. 02/JP/2025 being treated as the lead cases.

What were the issues?

1. Whether on facts and in law, the CIT(A) was justified in deleting the addition of Rs. 40,15,061/- made by the AO on account of unexplained credits under Section 68 of the Income Tax Act, 1961, disallowing the exemption of Long Term Capital Gains. 2. Whether on facts and in law, the CIT(A) was justified in deleting the addition of Rs. 2,05,753/- made by the AO on account of unexplained expenditure for commission to acquire accommodation entries. 3. Whether the CIT(A) erred in directing the AO to implement the judgment of the Supreme Court in the case of Abhisar Buildwell and CBDT Instruction No. 1 of 2023 by re-opening assessments under Section 147, when the appeal was decided on merits under Section 153A. Assessee's Contentions (for Issue 3): The CIT(A) erred in directing the AO to re-open assessments under Section 147, as the CIT(A)'s authority was limited to deciding the appeal under Section 153A based on the existing assessment. The CIT(A) acted ultra vires by directing further litigation. The principle of finality in legal proceedings should be upheld. Revenue's Contentions (for Issues 1 & 2): The CIT(A) was not justified in deleting the additions made by the AO.

Which sections of the Income-tax Act were involved?

Section 68,Section 153A,Section 147

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Heard together (4 matters)

ITA No. 301/JP/2025
CO. No. 02/JP/2025
ITA No. 290/JP/2025
CO. No. 03/JP/2025

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

आयकर अपीलीय अधिकरण, जयपुर न्यायपीठ, जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, "B" JAIPUR डा० एस. सीतालक्ष्मी, न्यायिक सदस्य एवं श्री राठोड कमलेश जयन्तभाई, लेखा सदस्य के समक्ष BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, आयकर अपील सं. / ITA No. 301/JP/2025 निर्धारण वर्ष / Assessment Year : 2016-17 DCIT, Central Circle-01, Jaipur बनाम Vs.

Sh. Vaibhav Banka Aakarshan, Shahpura Road, Neem Ka Thana, Sikar स्थायी लेखा सं. / जीआईआर सं./PAN/GIR No.: ANAPB5274A अपीलार्थी / Appellant प्रत्यर्थी / Respondent CO. No. 02/JP/2025 (Arising out of ITA. No. 301/JP/2025) निर्धारण वर्ष / Assessment Year : 2016-17 Sh. Vaibhav Banka Aakarshan, Shahpura Road, Neem Ka Thana, Sikar बनाम Vs. DCIT, Central Circle-01, Jaipur स्थायी लेखा सं./जीआईआर सं./PAN/GIR No.: ANAPB5274A अपीलार्थी / Appellant प्रत्यर्थी / Respondent आयकर अपील सं. / ITA No. 290/JP/2025 निर्धारण वर्ष / Assessment Year : 2016-17 DCIT, Central Circle-01, Jaipur बनाम Vs.

Sh. Animesh Agarwal C/o Shri Raj Kumar Agarwal Shahpura Road, Neem Ka Thana, Sikar स्थायी लेखा सं. / जीआईआर सं./PAN/GIR No.: APYPA3310A अपीलार्थी / Appellant प्रत्यर्थी / Respondent CO. No. 03/JP/2025 (Arising out of ITA. No. 290/JP/202

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