DCIT, CENTRAL CIRCLE-1, JAIPUR, JAIPUR vs. VIPUL BANKA, SIKAR

ITA 292/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. However, the Tribunal found that the CIT(A) acted ultra vires by directing the AO to re-open assessments under Section 147. The Tribunal reasoned that the CIT(A)'s authority was limited to deciding the validity of the Section 153A additions. Directing re-opening under Section 147 was beyond its scope and violated the principle of finality in litigation, as established in various judicial pronouncements, including the Supreme Court's emphasis on repose in legal proceedings. Therefore, the Assessee's cross-objection was allowed. The appeals of the Revenue were dismissed, and the cross-objections of the Assessees were allowed. The Tribunal noted that the facts and issues in the other connected appeals were similar and would be decided mutatis mutandis.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) heard a batch of appeals and cross-objections filed by the Revenue (DCIT, Central Circle-01, Jaipur) and the Assessees, respectively. The appeals pertained to Assessment Year 2016-17, and some also to Assessment Year 2014-15. The lead case was ITA No. 301/JP/2025 (DCIT vs. Sh. Vaibhav Banka), with connected cross-objection CO No. 02/JP/2025. The Revenue was aggrieved by the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 31.12.2024, which had deleted additions made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961. The Assessee's cross-objection challenged the CIT(A)'s direction to the AO to re-open assessments under Section 147.

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, disallowing Long Term Capital Gains exemption due to unexplained credits under Section 68 of the Income Tax Act, 1961. 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 re-open assessments under Section 147, by implementing the judgment of the Supreme Court in 'Abhisar Buildwell' and CBDT Instruction No. 1 of 2023. Assessee's Contentions (on Issue 3): The CIT(A) erred by directing the AO to re-open assessments under Section 147, as this expanded the scope of the appeal beyond its jurisdiction and contravened the principle of finality in legal proceedings. The CIT(A) should have confined its decision to the sustainability of the Section 153A additions. Revenue's Contentions (on Issues 1 & 2): The CIT(A) was not justified in deleting the additions made by the AO concerning unexplained credits and expenditure, as these were based on the assessment proceedings under Section 153A.

Which sections of the Income-tax Act were involved?

Section 68,Section 153A,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

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 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) नि

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