DCIT, CENTRAL CIRCLE-1, JAIPUR, JAIPUR vs. SUBHASH CHANDRA BANKA, SIKAR

ITA 293/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 beyond its jurisdiction 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 sustainability of the additions under section 153A based on the facts and circumstances. Once the addition was deleted for lack of evidence, the CIT(A)'s role in that regard concluded. The Tribunal emphasized the principle of finality in legal proceedings and that stale issues should not be reactivated. Therefore, the cross-objections of the assessee were allowed, quashing the directions for re-opening under section 147. The revenue's appeals were dismissed.

What were the facts?

The appeals and cross-objections concern assessment year 2016-17, with some appeals also relating to assessment year 2014-15. The revenue (DCIT, Central Circle-01, Jaipur) is aggrieved by the orders of the CIT(A) dated 31.12.2024, which deleted additions made by the Assessing Officer (AO) under section 153A of the Income Tax Act, 1961. The assessee filed cross-objections challenging the CIT(A)'s directions to the AO to re-open assessments under section 147, citing Supreme Court judgments and CBDT instructions. The core dispute revolves around the deletion of additions related to unexplained credits and unexplained expenditure for commission, and the subsequent directions for re-opening.

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 the exemption of Long Term Capital Gains on account of unexplained credits under section 68 of the IT Act, 1961. The revenue contends the CIT(A) erred in deleting this addition. The assessee's argument is not explicitly recorded on this point, but their cross-objection suggests a broader challenge to the CIT(A)'s actions. 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. The revenue argues for the addition's sustainability. The assessee's position is implied through their cross-objection. 3. Whether the CIT(A) erred in directing 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 re-opening assessments under section 147, when the primary appeal was decided on merits. The assessee argues that the CIT(A) acted ultra vires by broadening the scope of the appeal and compelling further litigation.

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

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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