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

ITA 289/JPR/2025Status: DisposedITAT Jaipur08 July 202568 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(A) was correct in deleting the additions made by the AO under Section 153A for want of incriminating material. The Tribunal found that the CIT(A)'s authority was limited to deciding the sustainability of the additions based on the facts and circumstances of the case. By directing the AO to consider re-opening under Section 147, the CIT(A) acted beyond their jurisdiction (ultra vires). Therefore, the Tribunal allowed the cross-objections of the assessees. The appeals filed by the Revenue were dismissed, and the cross-objections of the assessees were allowed. The Tribunal noted that the decision in the lead case would apply mutatis mutandis to all other connected appeals and cross-objections due to similar facts and grounds.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) heard a consolidated batch of appeals and cross-objections involving the DCIT, Central Circle-01, Jaipur (Revenue) and several assessees, including Sh. Vaibhav Banka, Sh. Animesh Agarwal, Smt. Snehlata Agarwal, Priya Dewan, Sh. Subhash Chandra Banka, Smt. Usha Banka, Vipul Banka, Trilok Dewan, and Smt. Sarita Dewan. The assessment years under consideration were primarily 2016-17, with some appeals also pertaining to 2014-15. The appeals arose from orders of the Commissioner of Income Tax (Appeals) [CIT(A)], which had dealt with assessments made under Section 153A of the Income Tax Act, 1961. The Revenue was aggrieved by the deletion of additions made by the Assessing Officer (AO). The assessees filed cross-objections challenging directions issued by the CIT(A).

What were the issues?

1. Whether on facts and in circumstances of the case and in law, the Ld. CIT(A) is justified in deleting the addition of Rs.40,15,061/- made by the Assessing Officer disallowing the exemption of Long Term Capital Gains on account of unexplained credits u/s 68 of the IT Act 1961. The Revenue contended that the CIT(A) erred in deleting this addition. The assessee's argument on this point is not explicitly recorded, but their cross-objection suggests disagreement with the CIT(A)'s actions. 2. Whether on facts and in circumstances of the case and in law, the Ld. CIT(A) is justified in deleting the addition of Rs. 2,05,753/- made by the AO on account of unexplained expenditure for commission to acquire such accommodation entries. Similar to the first ground, the Revenue argued that the CIT(A) was not justified in deleting this addition. 3. Whether the Ld. CIT(A) erred in giving directions to the AO to implement the judgment of the Honorable Supreme Court in the case of Abhisar Buildwell and CBDT Instruction No. 1 of 2023 by directing the AO to consider re-opening under Section 147, thereby broadening the scope of the appeal decision. The assessee argued that the CIT(A) acted ultra vires by issuing such directions, as the CIT(A)'s authority ended with deciding the sustainability of the addition under Section 153A.

Which sections of the Income-tax Act were involved?

Section 153A,Section 68,Section 147

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Cases cited in this judgment(10)Show list

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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

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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/2025

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